1. Interpretation of the small-pitch LED display industry chain
From the perspective of the LED industry chain layout, small-pitch LED display is only one part of the LED application process and belongs to a new field of LED display application. From upstream epitaxial chips to midstream packaging devices, to the four major integrations of small-pitch LED displays: LED display system, high-definition display control system, video processing system and cooling system.
The small-pitch LED display is an integrated system, and only with the cooperation and cooperation of various small systems can the best display effect be achieved. From the analysis of the small-pitch LED display industry chain, the most critical part is the packaging device. Currently, major international manufacturers such as Nichia and Cree are still in a wait-and-see attitude towards light source devices below P2.5. There are already two companies in the mainland and Taiwan involved in the R&D and sales of small-pitch LED devices. Everlight Electronics is the first manufacturer to launch small-pitch devices. Currently, small-pitch products account for 5% of Everlight Electronics' total revenue. Its small-pitch LED devices were first cooperated with Leyard, with a yearly demand of 1,000KK. Since 2013, Everlight Electronics’ small-pitch LED lamp beads have not only been supplied to Leyard, but have been opened to small-pitch device manufacturers; Nationstar Optoelectronics currently has three small-pitch devices, of which the most mature 2020 is the mainland version launched in 2009. The first small-size device; and launched the higher-density 1515 device in 2012. In 2012, it began to develop the higher-density small-size device 1010 in CHIP type packaging. After one or two years of R&D and market testing, 1010 has now been put into mass production. , and vigorously promote it in the market; Taiwan Hongqi launched small-pitch packaging products in 2013, and the packaging specifications have been advanced to 0606 from 2020, and smaller-sized 0404 products are also planned. Hongqi currently applies LED small-pitch packaging models in three specifications: 2020, 1010 and 0606. The 1010 product has a high market share. Application manufacturers such as Shanghai Sansi, Lamp Technology, Unilumin Technology and other powerful manufacturers are using Hongqi 1010 products. Jingtai Optoelectronics launched the first generation of 1010 products in 2013 after R&D and practice. Because at present, 1010 products are the most controversial in small-pitch devices, such as caterpillars, dead lights, and failures. It can be said that the structure and reliability of 1010 products still need to be improved. In order to solve this problem In response to these problems, Jingtai Optoelectronics launched the second-generation 1010 product in 2014, which greatly improved the performance of the 1010 product. Currently, the monthly production capacity has reached 150KK while ensuring product quality, and the market response has been good. Leyard, Unilumin and Absen have become major application customers.
Table 1: Small-pitch packaging device manufacturers and products
In addition, the development of small-pitch LED displays has also driven the development of related supporting facilities, such as the innovation of LED video processors, driver ICs, control systems and other products. In the driver field, Macroblock Suzhou Riyuecheng has launched small-pitch driver IC products. Macroblock and Hongqi have jointly established Xinrui Precision to jointly develop driver ICs for small-pitch products, hoping to expand market share through more complete solutions. North Incorporated and Leyard also jointly develop driver chips; in control and video processing systems, Xinrui Precision Both Anova and VioVideo have done corresponding research and development on small-pitch LED display control systems, and have products on the market. Special mention is that VioVideo's 86XX product specifically solves the problems of multiple signal sources, multi-channel outputs, and multi-image switching in small-pitch LED displays. This solution was recognized in a project in Singapore that was jointly constructed with Leyard.
Furthermore, at the end of the industrial chain, such as cabinets, kits, power supplies, etc., there are specialized products to support the development and application of small-pitch LED displays. From the analysis of the industry chain, the small-pitch LED display itself has a fairly mature industrial chain system, so the small-pitch LED display has inherent advantages from the beginning. These acquired deficiencies require cooperation among all links in the industry chain to complete.
Price is a major problem that plagues the development of small spacing. In terms of color, contrast and other display effects, LED displays have obvious advantages. However, in terms of price, high pixel density and small spacing LED displays are almost the most expensive among DLP splicing, projection displays, liquid crystal displays, plasma displays, and OLED displays. Market information shows that taking a 65-inch display as an example, the price of LCD and plasma is less than 10,000 yuan; the price of projection display varies due to different brightness, but in most cases the cost does not exceed tens of thousands of yuan; the price of DLP rear projection splicing products is between 70,000 and 200,000. The price of an LED display with a pixel pitch below P2.0 for the corresponding display area is between 100,000 and 300,000 - its price is significantly higher than other display technologies by 1.5 to 20 times. Among them, in the mass, non-high-end market, the price of small-pitch LED displays is at least three times that of other optional display technologies. Although small-pitch LED display products mainly target the engineering application market, this market is not a price-sensitive market. However, due to the huge price difference and the fact that LED small-pitch displays are still in their infancy, market awareness is insufficient and the products are still unique.
There are shortcomings such as brightness that need to be improved, and price will inevitably become the core obstacle to the popularization of small-pitch LED displays.
The cost of small-pitch LED displays is about 40% higher than other indoor displays. Let’s break down these costs from the industrial chain. Light source devices account for 60% of the cost of small-pitch LED displays, and driver ICs and power supplies account for 15%. Therefore, about 70% of the cost is in devices and drivers. If you want to reduce prices in the future, the biggest possibility is to package devices.
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