Mini LED is the hottest track in the first half of this year. Under the accelerated promotion of major domestic and foreign manufacturers such as Apple, Samsung, and Huawei, the commercialization of Mini LED products is rapidly landing, and industry chain companies have laid out one after another to seize opportunities for future development, such as HC Semitek.
Yesterday (8), HC Semitek stated in the latest research report that the company has been experiencing steady growth in Mini RGB since 2019. The MiniLED backlight business will explode in response to terminal demand from 2020. Mini LED product sales in the first half of this year The amount is a substantial increase of 140% year-on-year.
HC Semitek said that the company's Mini LED products have strong competitiveness, which is mainly reflected in the following four aspects:
First, Mini LED needs to rely on technology and talents to achieve R&D accumulation. The company began to deploy Mini LEDs in 2017 and has deep technical reserves;
Second, red light technology is an important barrier to competition in the Mini LED industry. There are fewer companies with red light technology in the industry, and higher requirements for manufacturers’ own technology and material systems;
Third, unlike the LED market in the past which mainly relied on price competition, downstream manufacturers in the Mini LED market value chip manufacturers with good reliability and safety;
Fourth, the company is not only deploying the Mini LED business, but also deploying Mini's iterative products in a few years; and investing in the Micro LED field has first-mover advantages, technical advantages and customer advantages. As Micro LED becomes the mainstream, the downstream applications of the company's layout, such as mass transfer, array transfer, and color conversion, will also burst into new growth potential.
In terms of project expansion, HC Semitek's expansion plans are concentrated in Yiwu and Zhangjiagang. From the product point of view, Yiwu’s main fundraising project is Mini LED production expansion, while Zhangjiagang has high-end lighting/backlight/display/red-light Mini. Among them, Mini LED raised investment funds have spent 580 million yuan in the first half of this year, and nearly 50% of the expansion plan has been completed.
In addition, HC Semitek also stated that in response to cyclical market demand fluctuations, the company started with market segments to establish an effective mechanism to deal with it. For example, a 6-month rolling production plan is carried out in accordance with sales and product line forecasts to ensure both the utilization rate and the production and sales rate, and effective inventory management. As for the average price trend, to a large extent, it is determined by the speed at which Mini LEDs continue to increase in volume.
Finally, HC Semitek said that the company is optimistic about the development of the Mini LED market, of which Mini LED backlights will begin in the second half of the year. It is also optimistic about the traditional backlight market, RGB indoor and outdoor displays, plant lighting, car lights, etc.
