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Epistar JV with Leyard Optronics Starting Production of Mini LEDs for Backlights
Epistar the largest LED producer in Taiwan, is optimistic about its prospects for mini-LED sales in 2Q and 3Q of this year as they have received orders from several customers and hope that the space will see explosive growth, especially with Apple expected to release its first mini-LED iPad early this year. Samsung’s is targeting 2m TVs to be use mini-LEDs in 2021. Epistar has also indicated that volume shipments of mini-LED chips have been deferred from Q420 to Q321 as the product must pass certification requirements, given their smaller size and the need for high reliability.
Epistar expects to finish its line conversions to mini-LED oriented production in Q121, which seems to be the reason for the delay in final qualification. Having the problem of deciding whether to continue to run a profitable line or take it down to upgrade for a (hopefully) more profitable product requires a fine balance to maintain without over-promising or underperforming, and Epistar isn’t the only LED producer facing that situation currently.
Epistar's joint venture with China-based display maker Leyard Optoelectronic in the eastern Chinese city of Wuxi started production in October 2020 and has won orders for 67-inch 2K fine-pitch RGB mini LED displays with a pitch of 0.7mm and 81-inch ones with that of 0.9mm, with these displays to be mosaicked into large-size displays each with display area of 227 square meters, according to industry sources. The joint venture has fully utilized initial production capacity, and Epistar will expand production capacity for red-light LED chips in Taiwan and blue- and green-light LEDs in China to increase supply for the joint venture, with the expansion to be completed in second-quarter 2021, Epistar said. The joint venture aims to reach monthly packaging capacity of 1.6 billion LEDs, including 20,000 backlight units (BLUs), in 2022. If the joint venture can generate revenues of CNY1 billion (US$153 million) in 2021, it stands a chance of swinging into profits. If production capacity can be fully utilized, the joint venture is likely to reach annual revenues of CNY5 billion in five years.
Epistar owns 50% of the joint venture through two of its subsidiaries, and Leyard holds the remaining 50%.
EnnoStar, a holding company established jointly by Epistar and vertically-integrated LED maker Lextar Electronics, will be listed on the Taiwan Stock Exchange on January 6, 2021. EnnoStar is intended to combine Epistar's capability in LED production with Lextar's in LED packaging and module assembly to compete for orders for mini LED BLUs. As Samsung Electronics sets a goal of shipping two million mini LED-backlit LCD TVs and Apple will launch mini LED-backlit iPad Pro and MacBook in 2021, Epistar and Lextar will increase production for mini LED BLUs in first-quarter 2021. EnnoStar is expected to have revenues from mini LED take up 20-30% of 2021 consolidated revenues.
Fan Chin-Yung, who heads the operations at Apple has categorically stated that a lot of recently designed devices could not be approved or launched because of the pandemic. Travel restrictions also contributed towards a delay in the procurement of goods or raw material required for manufacturing electronic items or display screens. Now, as restrictions have eased up, both production and distribution have resumed in full swing. To make up for the delay in the launch of several new products laced with new-age technology, Apple is expected to release a variety of new products and models at regular intervals in 2021. The new iPad Pro would be among those products from the company that will see an early launch this year. As a result, a number of LED producers have been focusing on developing the technology to produce such products with emphasis on cost down. Since mini-LED technology is a progressive step in the development of LED backlighting, there is a relatively small increment in technological capability needed, which allows for competition where over-capacity exists.
The advantage for LED manufacturers and packagers is really one of premiums that can be embedded in the price of mini-LED backlight units, but in order to gain a cost advantage over the competition, volume and efficiency are needed. Ultimately small producers will be eliminated but at first many see Mini LEDs as a growth opportunity and step towards MicroLEDs. As the mini-LED industry develops, traditional LED manufacturers and packagers will lead the way, especially with the enticement of higher area-based pricing, but while the desire for digging themselves out of an LED rut, producers might be expecting a bit more than the reality of the CE space can provide.
Epistar the largest LED producer in Taiwan, is optimistic about its prospects for mini-LED sales in 2Q and 3Q of this year as they have received orders from several customers and hope that the space will see explosive growth, especially with Apple expected to release its first mini-LED iPad early this year. Samsung’s is targeting 2m TVs to be use mini-LEDs in 2021. Epistar has also indicated that volume shipments of mini-LED chips have been deferred from Q420 to Q321 as the product must pass certification requirements, given their smaller size and the need for high reliability.
Epistar expects to finish its line conversions to mini-LED oriented production in Q121, which seems to be the reason for the delay in final qualification. Having the problem of deciding whether to continue to run a profitable line or take it down to upgrade for a (hopefully) more profitable product requires a fine balance to maintain without over-promising or underperforming, and Epistar isn’t the only LED producer facing that situation currently.
Epistar's joint venture with China-based display maker Leyard Optoelectronic in the eastern Chinese city of Wuxi started production in October 2020 and has won orders for 67-inch 2K fine-pitch RGB mini LED displays with a pitch of 0.7mm and 81-inch ones with that of 0.9mm, with these displays to be mosaicked into large-size displays each with display area of 227 square meters, according to industry sources. The joint venture has fully utilized initial production capacity, and Epistar will expand production capacity for red-light LED chips in Taiwan and blue- and green-light LEDs in China to increase supply for the joint venture, with the expansion to be completed in second-quarter 2021, Epistar said. The joint venture aims to reach monthly packaging capacity of 1.6 billion LEDs, including 20,000 backlight units (BLUs), in 2022. If the joint venture can generate revenues of CNY1 billion (US$153 million) in 2021, it stands a chance of swinging into profits. If production capacity can be fully utilized, the joint venture is likely to reach annual revenues of CNY5 billion in five years.
Epistar owns 50% of the joint venture through two of its subsidiaries, and Leyard holds the remaining 50%.
EnnoStar, a holding company established jointly by Epistar and vertically-integrated LED maker Lextar Electronics, will be listed on the Taiwan Stock Exchange on January 6, 2021. EnnoStar is intended to combine Epistar's capability in LED production with Lextar's in LED packaging and module assembly to compete for orders for mini LED BLUs. As Samsung Electronics sets a goal of shipping two million mini LED-backlit LCD TVs and Apple will launch mini LED-backlit iPad Pro and MacBook in 2021, Epistar and Lextar will increase production for mini LED BLUs in first-quarter 2021. EnnoStar is expected to have revenues from mini LED take up 20-30% of 2021 consolidated revenues.
Fan Chin-Yung, who heads the operations at Apple has categorically stated that a lot of recently designed devices could not be approved or launched because of the pandemic. Travel restrictions also contributed towards a delay in the procurement of goods or raw material required for manufacturing electronic items or display screens. Now, as restrictions have eased up, both production and distribution have resumed in full swing. To make up for the delay in the launch of several new products laced with new-age technology, Apple is expected to release a variety of new products and models at regular intervals in 2021. The new iPad Pro would be among those products from the company that will see an early launch this year. As a result, a number of LED producers have been focusing on developing the technology to produce such products with emphasis on cost down. Since mini-LED technology is a progressive step in the development of LED backlighting, there is a relatively small increment in technological capability needed, which allows for competition where over-capacity exists.
The advantage for LED manufacturers and packagers is really one of premiums that can be embedded in the price of mini-LED backlight units, but in order to gain a cost advantage over the competition, volume and efficiency are needed. Ultimately small producers will be eliminated but at first many see Mini LEDs as a growth opportunity and step towards MicroLEDs. As the mini-LED industry develops, traditional LED manufacturers and packagers will lead the way, especially with the enticement of higher area-based pricing, but while the desire for digging themselves out of an LED rut, producers might be expecting a bit more than the reality of the CE space can provide.
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