MTC may manufacture Micro LED for Samsung
2024-08-21
According to Korean media reports, Samsung Electronics is considering outsourcing the production of some Micro LED displays, and MTC is one of the outsourcing partners it is considering.
Samsung may outsource part of its Micro LED production to MTC due to the urgent need to reduce costs
Korean media quoted industry sources as saying that Samsung is currently evaluating the possibility of outsourcing production for cost considerations, and is mainly targeting low-end Micro LED display production in markets such as India and the Middle East. As for the proportion of outsourced orders, industry sources revealed that it is expected to account for 20%-30% of Samsung's total Micro LED display products.
Korean media reports show that Samsung's Micro LED displays are divided into home and commercial directions. In terms of technical routes, Samsung's latest home Micro LED TV uses LTPS TFT (low-temperature polycrystalline silicon thin film transistor) technology, while commercial Micro LED currently still uses PCB technology
South Korean media said that if Samsung outsources the production of commercial Micro LED modules to Micro LED manufacturers such as MTC, the latter will manufacture for Samsung through PCBA (printed circuit board assembly).
At this stage, considering that the Micro LED module technology of relevant manufacturers in mainland China such as MTC has improved, Samsung believes that there is no obvious difference between outsourcing production and directly completing the relevant module process, but it can also reduce production costs. If it cooperates with MTC and others, Samsung Micro LED is expected to reduce costs by 5%-10%.
In addition to reducing costs, South Korean media pointed out that Samsung's consideration of outsourcing low-end product production is conducive to its focus on the bonding and seamless process of Micro LED modules, focusing on semiconductor production processes. Industry insiders pointed out that the bonding and seamless technology of Micro LED modules are more "gold content". Although the Micro LED chip supply chains of various manufacturers are highly overlapped, the bonding and seamless splicing after module production are the key to determining the final quality of the entire product.
MTC and Samsung are on the same wavelength, and effective cost reduction in the Micro LED industry is in sight
It has long been an open secret in the industry that Samsung plans to reduce the cost of Micro LED. According to news at the beginning of last month, Samsung's cost reduction plan has been launched and is currently working with relevant partners to promote this project.
But it is worth noting that the potential partner reported by the Korean media this time is BMTC. It is understood that in the MTC LED industry chain, the two mid- and downstream subsidiaries include VMTC and BMTC. VMTC is responsible for COB small-pitch LED display business, and BMTC is responsible for SMD LED packaging, backlight and lighting business. If it cooperates with Samsung in Micro LED foundry business, the corresponding product should theoretically be the COB module of MTC. However, there is no official news to confirm the authenticity, and the actual situation needs to be verified.
But whether this news is true or half-true and half-false, MTC is indeed "on the same wavelength" with Samsung on the road of cost reduction.
At the first half of this year's performance briefing, MTC emphasized its continued exploration of COB cost reduction ideas, which can be seen from the increase in its COB penetration rate, chip miniaturization, and virtual pixel technology layout.
It is reported that MTC's COB penetration rate has been further improved in the first half of the year; in terms of chip miniaturization, MTC Semiconductor has further reduced the size of Mini LED chips from 3x6mil to 2x6mil this year; in terms of virtual pixel technology layout, MTC Crystal Display has developed three-lamp and four-lamp solutions and has achieved mass sales.
As far as virtual pixel technology is concerned, in some application scenarios, this technology has been regarded as an ideal solution that can effectively drive down the cost of Micro LED. At present, it has attracted about 10 (incomplete statistics) LED manufacturers including MTC to join the layout. In the future, with the active promotion of manufacturers, if more actual products receive positive feedback after landing, Micro LED displays are expected to achieve the goal of reducing costs and improving quality by combining virtual pixel technology, thereby accelerating the penetration of conference room office, commercial applications and other scenarios.
In terms of chip miniaturization, according to the "2024 Micro LED Market Trend and Technology Cost Analysis Report", the output value of Micro LED chips is expected to reach US$580 million by 2028, with a compound annual growth rate of 84% from 2023 to 2028. From the perspective of driving factors, in addition to the continuous investment of domestic and foreign manufacturers such as Samsung, LG, BOE and Vistar, the entire industry actively promotes the cost compression and size miniaturization of Micro LED chips. It is also an important driving factor.
Back to Samsung's cost reduction, it is certain that Samsung has accelerated its pace both internally and externally. Externally, Samsung began to promote plans to cooperate with other manufacturers; internally, Samsung actively broke through the technical difficulties of mass transfer, thereby driving down costs. Although Samsung is currently facing difficulties in promoting Micro LED TVs, with the simultaneous efforts of both internal and external forces, Samsung's Micro LED TV business is expected to gradually break through. Combined with the efforts of the global Micro LED industry chain, the turnaround of the entire industry also has the opportunity to accelerate.
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