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San’an Looks to Mass Produce Mini and Micro LEDs by 2021
July 26, 20
While there is considerable talk about how the display industry will be enhanced by the use of mini-LEDs and transformed by the use of micro-LEDs, there is relatively little detail concerning potential capacity for both modalities, which differ considerably. Mini-LEDs are typically used to replace large area backlights that are the light source for LCD TVs. Over the last few years the number of LEDs used in TV backlight arrays has continued to increase, with high end ultra-large TVs having up to a few thousand LEDs operating as backlights that can be controlled in groups known as strings with a feature called “local dimming”. If an LED or string is on near a pixel that is trying to display black, the light leaks into that pixel and changes the black to gray. Without being able to match an LED for every one of the 4K, 8.29m pixels and 24.9m sub-pixels, the contrast (difference between the whitest white and the blackest black) suffers. Mini-LEDs, because of their small size allow LED backlights that have hundreds of thousands of LEDs, all of which are individually controllable. While this does not completely solve the contrast issue it does improve it under certain circumstances. But the cost of producing highly dense backlight modules is high as it is difficult to produce, move, and test small chips and new production and assembly techniques must be being developed to help move the technology forward. San’an Optoelectronics based in Xiamen, China authorized construction of a 3 phase $1.43b project last April and began construction 3 months later and is expected to be in mass production in 2021. San’an is believed to be targeting production of ~2.1m mini-LED chips annually and 260,000 micro-LED chips, with 84,000 4K packaged modules, broken down in the next table.
Table 1: San’an Mini and Micro LED Production
July 26, 20
While there is considerable talk about how the display industry will be enhanced by the use of mini-LEDs and transformed by the use of micro-LEDs, there is relatively little detail concerning potential capacity for both modalities, which differ considerably. Mini-LEDs are typically used to replace large area backlights that are the light source for LCD TVs. Over the last few years the number of LEDs used in TV backlight arrays has continued to increase, with high end ultra-large TVs having up to a few thousand LEDs operating as backlights that can be controlled in groups known as strings with a feature called “local dimming”. If an LED or string is on near a pixel that is trying to display black, the light leaks into that pixel and changes the black to gray. Without being able to match an LED for every one of the 4K, 8.29m pixels and 24.9m sub-pixels, the contrast (difference between the whitest white and the blackest black) suffers. Mini-LEDs, because of their small size allow LED backlights that have hundreds of thousands of LEDs, all of which are individually controllable. While this does not completely solve the contrast issue it does improve it under certain circumstances. But the cost of producing highly dense backlight modules is high as it is difficult to produce, move, and test small chips and new production and assembly techniques must be being developed to help move the technology forward. San’an Optoelectronics based in Xiamen, China authorized construction of a 3 phase $1.43b project last April and began construction 3 months later and is expected to be in mass production in 2021. San’an is believed to be targeting production of ~2.1m mini-LED chips annually and 260,000 micro-LED chips, with 84,000 4K packaged modules, broken down in the next table.
Table 1: San’an Mini and Micro LED Production
Given that the number of chips required for each backlight, the production estimates from Weibo are very low, and may only represent pilot operations. Local governments in China offered subsidies of CNY1.05 billion (US$149 million) for Chinese LED firms in first-half 2020, according to Gaogong Industry Research Institute (GGII). The subsidization focus has shifted from capacity expansion to R&D, especially for mini and micro LED technologies, and upgrading of manufacturing, GGII said.
LED chip maker San’an Optoelectronics topped the subsidy recipients in first-half 2020, as its subsidiary Xiamen San’an Integrated Circuit obtained a subsidy of CNY200 million for R&D and CNY140 million for manufacturing equipment, GGII noted. LED chip makers HC SemiTek and Focus Lightings Tech received nearly CNY120 million and nearly CNY4 million respectively. MLS was the largest winner among LED packaging service providers, obtaining a subsidy of CNY160 million, GGII indicated. MOCVD equipment maker Advanced Micro-Fabrication Equipment won subsidies totaling CNY260 million, GGII said, adding that the company recorded net profit of CNY188 million for 2019, hiking 107% on year.
LED chip maker San’an Optoelectronics topped the subsidy recipients in first-half 2020, as its subsidiary Xiamen San’an Integrated Circuit obtained a subsidy of CNY200 million for R&D and CNY140 million for manufacturing equipment, GGII noted. LED chip makers HC SemiTek and Focus Lightings Tech received nearly CNY120 million and nearly CNY4 million respectively. MLS was the largest winner among LED packaging service providers, obtaining a subsidy of CNY160 million, GGII indicated. MOCVD equipment maker Advanced Micro-Fabrication Equipment won subsidies totaling CNY260 million, GGII said, adding that the company recorded net profit of CNY188 million for 2019, hiking 107% on year.
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