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The LED direct display industry has transitioned from a growth-driven opportunity sector to a "stamina" competition industry, with 2024 marking a pivotal year. Industry insiders note that leading companies are now competing not only on the scale of domestic and international expansion but also on the depth of their vertical supply chain integration. The winners will be those who demonstrate enduring stamina across both dimensions.
From Scale to Depth: The New Competitive Edge
What defines a leader in the LED direct display industry? It’s not necessarily about being a decades-old brand but rather about recent advancements in critical technological assets.
For instance, Zhaochi Group began its LED journey in 2011, starting with backlight packaging for LCD displays before moving upstream into LED chips and expanding horizontally into direct display COB (Chip-on-Board) technology. By 2014, its packaging project was operational, and in 2020, it launched the world’s largest LED chip factory. Over the years, Zhaochi has maintained its position as the global leader in COB packaging display component shipments, becoming a behind-the-scenes powerhouse for numerous industry brands.
Another example is Unilumin, the global leader in LED smart display market share in 2023. The company made a breakthrough in mass transfer technology, achieving substrate-free Micro LED packaging at 30μm x 50μm dimensions (0202, or 0.2mm x 0.2mm) and simultaneously launching mass production of MiP P0.4 pitch display products. In 2024, Unilumin plans to expand its Mini/Micro LED production capacity from 3 billion units per month to 10 billion units per month. Advances in midstream and upstream technologies, including COB, MiP, and mass transfer, have extended Unilumin’s innovation chain and strengthened its competitive edge.
Unilumin, a veteran in the industry, has heavily invested in midstream packaging, while Zhaochi, a rising star, started with packaging, secured a leading position in chips, and excelled in high-end COB panels. These cases illustrate that as LED direct display technology evolves, mastering core upstream technologies becomes increasingly critical. Only with strong upstream capabilities can companies like Unilumin dominate global market share and Zhaochi account for nearly half of global COB output.
Industry experts point out that the competition among companies is increasingly intertwined with vertical supply chain integration, forming a multi-dimensional competitive landscape. Relying solely on terminal integration or external midstream and upstream supplies inevitably weakens innovation and cost competitiveness.
Extending the Chain, Building Innovation
By the end of 2024, Unilumin’s MiP product range expanded from P1.0 to a broad spectrum of P0.7 to P3.8, covering nearly all consumer product needs. This achievement was made possible by pioneering mass transfer and 0404 MiP packaging technologies.
A longer technology chain not only provides a time advantage in launching new products but also allows companies to control production capacity and understand the cost and technical characteristics of new technologies. This ensures that end products excel in detail and reliability.
With the development of AM (Active Matrix) driving technology, especially AM IC and LED co-packaging, the emergence of A-MIP (or D-MIP) and AM-COB devices has further highlighted the importance of midstream packaging capabilities. Without these capabilities, companies face shrinking technical space in driving design and circuit structures, leading to product homogenization and a shorter industry value chain.
As AM driving and ultra-fine pitch (below P1.0) technologies advance, the technical integration scale of the packaging segment and its value share in final LED direct display products continue to grow, making it a critical hub for cost, innovation, and quality. Mastering upstream capabilities and technologies will be the cornerstone of sustained growth for industry players.
For example, as a leader in TFT-based Micro-LED display technology, Visionox’s subsidiary, Chengxian Optoelectronics, unveiled four groundbreaking Micro-LED products at the World Display Industry Innovation and Development Conference on December 19. Chengxian not only invested in the world’s first TFT-Micro-LED mass production line but also achieved innovations in P0.7 large-screen LEDs, P0.5 large-screen LEDs, P0.5 transparent LEDs, and the world’s first Micro-LED light field naked-eye 3D display.
Visionox’s entry into the LED direct display industry through TFT-Micro-LED packaging exemplifies its strategic path. Chengxian’s series of world-first or leading products demonstrate the breakthroughs and innovations enabled by mastering midstream and upstream technologies. The combination of TFT, mass transfer packaging, and Micro-LED has raised the industry entry barrier, providing a foundation for sustained market competitiveness.
Unilumin’s 0202 MiP devices and their smaller-pitch end products are already targeting future markets such as gaming monitors, high-end TVs, automotive displays, and even AR glasses, automotive digital headlights, HUDs, and Micro-LED projection systems. While not every LED leader will enter all these markets, having midstream and upstream innovation capabilities opens the door to more potential opportunities. Without these capabilities, companies cannot explore these emerging markets.
Future Competition: Bigger and Stronger
The competition in China’s LED direct display industry will intensify in the coming years. This includes not only domestic rivalry but also the expansion into vast overseas markets. Traditional LED direct display companies, midstream packaging firms, and upstream chip manufacturers will be joined by ICT, TV, and display panel players. Applications will extend beyond traditional large-screen engineering to automotive, AI glasses, gaming monitors, projectors, and TVs.
The broadening scope, product diversity, and increased participation will clash with the current market landscape, which is highly fragmented, dominated by small-scale players with limited core technology and overseas expansion capabilities. This collision will bring both challenges and opportunities for structural industry transformation. [图片3]
Industry experts predict that China’s LED direct display industry will evolve from a "blooming" competitive era to one dominated by true global giants. Leading companies’ market shares will grow from single-digit percentages to double digits, while the number of participating brands will decrease significantly. The current landscape, with nearly 100 listed companies, is large but not strong. The industry must strive for strength.
From an industry development cycle perspective, the past decade’s growth-driven phase created numerous opportunities, fostering a competitive landscape. However, as global market growth slows and competition shifts to existing markets, the industry will consolidate around leading companies with more resources, supply chain capabilities, and technological expertise. This will usher in a new competitive cycle centered on vertical supply chain integration.
2025 will be a critical year for the scaling and evolution of MiP technology and a decisive moment for LED direct display companies to capture the next technological high ground. As the industry increasingly focuses on strategies of "bigger and stronger," companies must plan their growth paths by mastering more core technology segments to build long-term competitiveness.
Of course, longer supply chain investments and R&D innovations will be a slow and capital-intensive process. This requires not only financial strength but also patience, confidence, strategic focus, and a long-term vision. It is a test of corporate culture and strategic self-awareness, demanding a fusion of self-improvement and strategic insight.
From Scale to Depth: The New Competitive Edge
What defines a leader in the LED direct display industry? It’s not necessarily about being a decades-old brand but rather about recent advancements in critical technological assets.
For instance, Zhaochi Group began its LED journey in 2011, starting with backlight packaging for LCD displays before moving upstream into LED chips and expanding horizontally into direct display COB (Chip-on-Board) technology. By 2014, its packaging project was operational, and in 2020, it launched the world’s largest LED chip factory. Over the years, Zhaochi has maintained its position as the global leader in COB packaging display component shipments, becoming a behind-the-scenes powerhouse for numerous industry brands.
Another example is Unilumin, the global leader in LED smart display market share in 2023. The company made a breakthrough in mass transfer technology, achieving substrate-free Micro LED packaging at 30μm x 50μm dimensions (0202, or 0.2mm x 0.2mm) and simultaneously launching mass production of MiP P0.4 pitch display products. In 2024, Unilumin plans to expand its Mini/Micro LED production capacity from 3 billion units per month to 10 billion units per month. Advances in midstream and upstream technologies, including COB, MiP, and mass transfer, have extended Unilumin’s innovation chain and strengthened its competitive edge.
Unilumin, a veteran in the industry, has heavily invested in midstream packaging, while Zhaochi, a rising star, started with packaging, secured a leading position in chips, and excelled in high-end COB panels. These cases illustrate that as LED direct display technology evolves, mastering core upstream technologies becomes increasingly critical. Only with strong upstream capabilities can companies like Unilumin dominate global market share and Zhaochi account for nearly half of global COB output.
Industry experts point out that the competition among companies is increasingly intertwined with vertical supply chain integration, forming a multi-dimensional competitive landscape. Relying solely on terminal integration or external midstream and upstream supplies inevitably weakens innovation and cost competitiveness.
Extending the Chain, Building Innovation
By the end of 2024, Unilumin’s MiP product range expanded from P1.0 to a broad spectrum of P0.7 to P3.8, covering nearly all consumer product needs. This achievement was made possible by pioneering mass transfer and 0404 MiP packaging technologies.
A longer technology chain not only provides a time advantage in launching new products but also allows companies to control production capacity and understand the cost and technical characteristics of new technologies. This ensures that end products excel in detail and reliability.
With the development of AM (Active Matrix) driving technology, especially AM IC and LED co-packaging, the emergence of A-MIP (or D-MIP) and AM-COB devices has further highlighted the importance of midstream packaging capabilities. Without these capabilities, companies face shrinking technical space in driving design and circuit structures, leading to product homogenization and a shorter industry value chain.
As AM driving and ultra-fine pitch (below P1.0) technologies advance, the technical integration scale of the packaging segment and its value share in final LED direct display products continue to grow, making it a critical hub for cost, innovation, and quality. Mastering upstream capabilities and technologies will be the cornerstone of sustained growth for industry players.
For example, as a leader in TFT-based Micro-LED display technology, Visionox’s subsidiary, Chengxian Optoelectronics, unveiled four groundbreaking Micro-LED products at the World Display Industry Innovation and Development Conference on December 19. Chengxian not only invested in the world’s first TFT-Micro-LED mass production line but also achieved innovations in P0.7 large-screen LEDs, P0.5 large-screen LEDs, P0.5 transparent LEDs, and the world’s first Micro-LED light field naked-eye 3D display.
Visionox’s entry into the LED direct display industry through TFT-Micro-LED packaging exemplifies its strategic path. Chengxian’s series of world-first or leading products demonstrate the breakthroughs and innovations enabled by mastering midstream and upstream technologies. The combination of TFT, mass transfer packaging, and Micro-LED has raised the industry entry barrier, providing a foundation for sustained market competitiveness.
Unilumin’s 0202 MiP devices and their smaller-pitch end products are already targeting future markets such as gaming monitors, high-end TVs, automotive displays, and even AR glasses, automotive digital headlights, HUDs, and Micro-LED projection systems. While not every LED leader will enter all these markets, having midstream and upstream innovation capabilities opens the door to more potential opportunities. Without these capabilities, companies cannot explore these emerging markets.
Future Competition: Bigger and Stronger
The competition in China’s LED direct display industry will intensify in the coming years. This includes not only domestic rivalry but also the expansion into vast overseas markets. Traditional LED direct display companies, midstream packaging firms, and upstream chip manufacturers will be joined by ICT, TV, and display panel players. Applications will extend beyond traditional large-screen engineering to automotive, AI glasses, gaming monitors, projectors, and TVs.
The broadening scope, product diversity, and increased participation will clash with the current market landscape, which is highly fragmented, dominated by small-scale players with limited core technology and overseas expansion capabilities. This collision will bring both challenges and opportunities for structural industry transformation. [图片3]
Industry experts predict that China’s LED direct display industry will evolve from a "blooming" competitive era to one dominated by true global giants. Leading companies’ market shares will grow from single-digit percentages to double digits, while the number of participating brands will decrease significantly. The current landscape, with nearly 100 listed companies, is large but not strong. The industry must strive for strength.
From an industry development cycle perspective, the past decade’s growth-driven phase created numerous opportunities, fostering a competitive landscape. However, as global market growth slows and competition shifts to existing markets, the industry will consolidate around leading companies with more resources, supply chain capabilities, and technological expertise. This will usher in a new competitive cycle centered on vertical supply chain integration.
2025 will be a critical year for the scaling and evolution of MiP technology and a decisive moment for LED direct display companies to capture the next technological high ground. As the industry increasingly focuses on strategies of "bigger and stronger," companies must plan their growth paths by mastering more core technology segments to build long-term competitiveness.
Of course, longer supply chain investments and R&D innovations will be a slow and capital-intensive process. This requires not only financial strength but also patience, confidence, strategic focus, and a long-term vision. It is a test of corporate culture and strategic self-awareness, demanding a fusion of self-improvement and strategic insight.
