At present, the LED packaging is being transferred from abroad to the mainland, and the display package has surpassed 58%, especially in small-pitch applications, where the small spacing technology is now firmly established within the mainland supply chain. Leading packaging companies are expanding their production to meet the growing demand for small-pitch solutions. Liu Chuanbiao, Deputy General Manager of Guoxing Optoelectronics' RGB Business Unit, made these remarks at the High-tech LED Annual Meeting.
*Liu Chuanbiao, Deputy General Manager of Guoxing Optoelectronics RGB Business Unit*
From December 21st to 22nd, 2017, the 2017 High-tech LED Annual Meeting and Golden Globe Awards Ceremony, hosted by Gaogong LED, took place in Shenzhen Baoan Dunxi Road. The event was themed “Deepening the Smoke and Softening the Strength, and Deep Integration to Tap New Opportunities.†It brought together industry leaders and over 400 professionals to discuss the future of the LED industry, including market trends, technological advancements, and strategic opportunities.
During the closing session titled “New Patterns and Strategic Opportunities for the Deep Integration Period,†Hongli Zhihui delivered a keynote speech on “Technology Drive and Industrial Innovation in LED Packaging.â€
According to data from the High-Tech Research Institute’s LED Research Institute (GGII), the Chinese small-pitch LED market reached 5.9 billion yuan in 2017, with a penetration rate of 3.3%. It is projected that by 2020, the market will reach 17.7 billion yuan, with a penetration rate of 7.3%.
Small-pitch LED displays have found significant applications in both indoor and outdoor spaces. The rapid growth of outdoor small-pitch displays has been driven by advances in chip technology over the past two years. For example, Star Optoelectronics solved the waterproof issue of 3535 SMD devices, enabling broader use in emerging markets.
In recent years, mainland enterprises have led the development of small-pitch technology, achieving remarkable results. Guoxing Optoelectronics currently leads the world in small-pitch packaging capacity (below 1010 package). Liu Chuanbiao stated, “The small-pitch market is hot, and Guoxing Optoelectronics has made all necessary preparations.â€
Small-pitch displays are increasingly entering the projector and cinema markets, each exceeding 10 billion in value. In July of this year, Samsung introduced the world's first cinema LED display, measuring 10.3 meters wide and 5.4 meters high, supporting 4K resolution. Designed specifically for cinemas, Samsung expects the cinema penetration rate to reach 10% by 2020.
Display technology continues to evolve, with indoor and outdoor screens moving toward smaller pitches. This requires packaging technology to produce smaller, more compact devices to meet high-density display demands. Additionally, the devices are becoming darker and more contrast-rich, shifting from white light to black light for improved visual performance.
Liu Chuanbiao believes that with advancements in chip technology, packaging will enhance brightness and improve waterproof reliability. Black light is already being used in outdoor applications, and he predicts that fixed installations will follow suit in the future.
While COB technology is gaining attention, especially in the display sector, its commercialization still faces challenges. Although COB offers advantages, especially for sub-P1.0 pitches, there are three main issues: low initial yield, difficulty in controlling appearance consistency, and color uniformity. Color uniformity requires very narrow chip spectrometer standards, significantly increasing costs. For instance, the cost of color separation for small chips has exceeded 20%. However, Guoxing Optoelectronics has achieved fine splitting and color separation in its 1010 and 0808 products while maintaining cost competitiveness.
Liu concluded by emphasizing that product quality is a top priority. He compared the market to a pyramid, where the base represents mass-market products with the lowest price, the middle segment focuses on lease applications, and the top includes high-reliability projects such as Times Square or sports venues. These high-end markets require premium brands like REESTAR to meet strict standards.
With the shrinking presence of international packaging giants, high-end brands like REESTAR are expected to create new opportunities in the global market.
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