Miniled backlight: at the right time of large-scale commercial, cob scheme has become the mainstream
Miniled backlight technology has gradually matured, and the industry has entered the fast lane. The LCD with miniled backlight can greatly improve the existing LCD picture effect, and the cost is relatively easy to control, which is expected to become the mainstream of the market. Terminal manufacturers have successively launched miniled backlight products since 2021 to inject fresh vitality into the whole industrial chain. According to ledinside's prediction, the market scale of miniled backlight products will exceed US $1 billion in 2023. Among them, in the backlight display field, there are differences in technical paths such as cob (i.e. wafer directly printed to PCB) and COG (wafer printed to glass substrate). At present, cob scheme is the mainstream path of mass production, which not only cancels the LED support, but also has more price advantages.
The promotion of miniled backlight cob scheme benefits the links of copper clad laminate and PCB
Miniled backlight cob scheme promotes CCL and PCB to usher in opportunities for product advancement. In the copper clad laminate link, the miniled backlight puts forward higher requirements for the reflectivity, glass transition temperature, ultraviolet discoloration resistance, heat discoloration resistance and heat dissipation of copper clad laminate. For miniled applications of different terminal electronic equipment, copper clad laminate manufacturers provide differentiated solutions, including BT like carrier, medium and high Tg halogen-free materials and traditional FR-4 materials. We estimate that the market space will reach 7.97 billion yuan in 2022, yoy + 129.1%, and the input-output ratio of high-end display copper clad laminate material project is about 2.3 ~ 4.3. In PCB, mini LED is packaged in cob, which requires extremely high flatness of circuit board. Solder resist and surface treatment are the core process barriers. Suppliers launch HDI and multi-layer PCB schemes. We expect that the market scale of mini LED backlight PCB will reach 15.98 billion yuan in 2022, and the input-output ratio of HDI scheme project is about 1:0.8.
Industry Outlook: Mini ledcob scheme is a springboard for CCL and PCB manufacturers to advance their products
In the copper clad laminate link, the BT carrier used for mini LED will improve the comprehensive net profit margin of the manufacturer's product portfolio. With the addition of new manufacturers in the next 2 ~ 3 years, the profit margin will return to the profit center of conventional products. In the long run, CCL manufacturers are expected to gradually improve product performance by relying on the formula of mini led BT materials, and advanced to the BT materials used for IC packaging substrates. In PCB link, HDI scheme is expected to be extended to all types of products; From the perspective of supplier structure, the supply chain system of overseas customers is relatively closed, while domestic manufacturers will take advantage of the capacity expansion opportunity of downstream Chinese miniled backlight products to supplement the short board with low localization rate of HDI.
Investment advice
We suggest paying attention to the benefit target of two links, copper clad laminate: (1) Shengyi Technology Co.Ltd(600183) : BT like white copper clad laminate materials are introduced into consumer electronics head customers, and the products enter the stage of mass production, (2) Nanya New Material Technology Co.Ltd(688519) : layout the capacity of high-end display materials, and the profit level is expected to rise with the mass production of new products. PCB link: (1) Avary Holding (Shenzhen) Co.Limited(002938) : the supplier of miniledhddi solution products for consumer electronics head customers, (2) Aoshikang Technology Co.Ltd(002913) : the supplier of mini led multilayer board solution for Korean customers, which is expected to digest production capacity with the rapid growth of mini LED market.
Risk tip: the manufacturer's yield is lower than expected, resulting in high cost, COG scheme replaces cob scheme, miniled demand is lower than expected, and fierce industry competition leads to rapid price decline.
