The Mini-LED Race
Epistar, a division of Ennostar (3714.TT), has indicated that it will be expanding its Mini-LED chip capacity again, this time in China, bringing the new capacity on-line by the end of 2Q this year. Last year Epistar added ~20% capacity in Taiwan, which it completed during the 4th quarter, so this new capacity is incremental, bringing total capacity from 1.2m units/yr. to 1.5m units/yr., up 25%. Revenue from the Mini-LED segment is expected to increase from ~30% to almost 40% in 2022, although the company is expecting to see a sequential decline in sales in 1Q ’22, although a y/y increase is expected.
Fittech (6706.TT), among the top LED testing companies, is also expanding capacity, with between 20% and 30% of sales currently accounting for the company’s testing and binning services, which is expected to remain at that level this year, although sales are expected to be up in 1Q on a y/y basis. Mini-LED production continues to expand as the technology, which improves existing LCD display characteristics, allowing the older technology to better compete with OLED displays, and has migrated down to laptops and monitors, particularly with Apple’s (AAPL) adoption of the technology in the iPad Pro (April 2021) and the 14”/16” MacBook Pro (October 2021), although the Apple XDR Pro Display came close to Mini-LED backlighting in 2019.
While Taiwan based LED producers, packagers and attesting companies expand production, they face considerable competition from Chinese producers who entered the space a bit later than those involved with Apple’s Mini-LED supply chain, but in typical Chinese fashion, have pushed aggressively to build out the necessary infrastructure to maintain a leading position in the LED space. Much of China’s LED capacity however is oriented toward LED lighting and Sanan (600703.CH), China’s largest LED producer has been working toward inclusion as an Apple supplier but has yet to meet Apple’s criteria, which in the case of LEDs is quality, especially the consistency of the LEDs across a wafer or production volume generally. Some question Sanan’s patent status, leaving Apple open to potential litigation, as another hurdle Sanan must cross if it is to be added to Epistar (Ennostar) and AMS OSRAM (AMS.SW), Apple’s current Mini-LED suppliers.
See our 2021 notes on Epistar and Fittech for more information:
12-17-21 – A Bulb by Any Other Name
12-02-21 – Apple Invests in PlayNitride
10-22-21 – Mini-LEDs – More
08-09-21 - Coincidentally
08-02-21 – Apple Revving up Mini-LED Supply Chain
04-23-21 – New Technology, New Problems
04-12-21 – Apple Mini-LED Hints
Fittech (6706.TT), among the top LED testing companies, is also expanding capacity, with between 20% and 30% of sales currently accounting for the company’s testing and binning services, which is expected to remain at that level this year, although sales are expected to be up in 1Q on a y/y basis. Mini-LED production continues to expand as the technology, which improves existing LCD display characteristics, allowing the older technology to better compete with OLED displays, and has migrated down to laptops and monitors, particularly with Apple’s (AAPL) adoption of the technology in the iPad Pro (April 2021) and the 14”/16” MacBook Pro (October 2021), although the Apple XDR Pro Display came close to Mini-LED backlighting in 2019.
While Taiwan based LED producers, packagers and attesting companies expand production, they face considerable competition from Chinese producers who entered the space a bit later than those involved with Apple’s Mini-LED supply chain, but in typical Chinese fashion, have pushed aggressively to build out the necessary infrastructure to maintain a leading position in the LED space. Much of China’s LED capacity however is oriented toward LED lighting and Sanan (600703.CH), China’s largest LED producer has been working toward inclusion as an Apple supplier but has yet to meet Apple’s criteria, which in the case of LEDs is quality, especially the consistency of the LEDs across a wafer or production volume generally. Some question Sanan’s patent status, leaving Apple open to potential litigation, as another hurdle Sanan must cross if it is to be added to Epistar (Ennostar) and AMS OSRAM (AMS.SW), Apple’s current Mini-LED suppliers.
See our 2021 notes on Epistar and Fittech for more information:
12-17-21 – A Bulb by Any Other Name
12-02-21 – Apple Invests in PlayNitride
10-22-21 – Mini-LEDs – More
08-09-21 - Coincidentally
08-02-21 – Apple Revving up Mini-LED Supply Chain
04-23-21 – New Technology, New Problems
04-12-21 – Apple Mini-LED Hints
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