Mini LED TV: Rising rapidly, reshaping the high-end market landscape

At a time when the wave of technology is surging and the iteration of TV display technology is accelerating, Mini LED TVs 'move towards mainstream status in the high-end market seems to have become an unstoppable historical process, and their rapid development rate far exceeds everyone's expectations. The data in the 52DP "2024 Mini LED Backlighting and Vehicle Research White Paper" clearly outlines this rise trajectory: Mini LED TV shipments in 2023 will be 4.08 million units, and by 2024, this number will almost double, increasing to 8.2 million units, a year-on-year increase of 100%, showing amazing market explosive power.
Looking at the penetration rate, the penetration rate of Mini LED TVs in 2024 will increase significantly from 2% in 2023 to 3.8%; in contrast, the penetration rate of OLED TVs will increase relatively slowly, rising only slightly from 2.6% in 2023 to 3.2%. This historic leap marks the first time that Mini LED TVs have surpassed OLED TVs in terms of penetration. It is undoubtedly an important milestone in the development of TV display technology. The creation of this achievement is the crystallization of the intertwined and coordinated efforts of multiple factors, covering multiple key aspects such as the continuous driving of technological innovation, the effective achievement of cost control, the precise layout of market strategies, and the solid support of the supply chain system. level.

1. Three core trends in the development of Mini LED TVs

(1) Optimization of the number of partitions: an exquisite balance between image quality and cost | Overall, the brand layout in the high-end TV field shows distinctive regional characteristics.
The OLED TV camp is dominated by Japanese and Korean manufacturers, with Samsung and LG being typical representatives among them; while Mini LED TVs mainly rely on the strong strength of China companies, and companies such as TCL, Hisense, Xiaomi, and Skyworth are active in this field. The steady increase in the penetration rate of Mini LED TVs can, in a sense, be regarded as a vivid reflection of the deep changes in the global display industry landscape, demonstrating the further strengthening of China's display industry's influence and voice on the global stage.
Focusing on the field of Mini LED-backlit TVs, in 2024, it will show three significant trends in the technical level. First of all, the number of backlight zones shows a trend of gradually moving closer to the 500 zones, and the vicinity of the 200 zone is the concentrated distribution interval. There is profound technical and economic logic behind this phenomenon. On the one hand, as the number of Mini LED TV backlight partitions increases, its marginal contribution to image quality improvement shows a decreasing pattern. Specifically, during the process of climbing from 100 partitions to 300 partitions, the contrast improvement effect of the picture is the most significant. However, as the number of partitions continues to increase, the contrast improvement gradually narrows. On the other hand, there is a positive correlation between the increase in the number of partitions and the cost of Mini backlight, that is, the more partitions, the higher the cost. Weighing the improvement of image quality with cost control needs, the number of partitions for Mini LED-backlit TVs will continue to be concentrated in an optimized interval of around 200 partitions in 2024, striving to maximize cost-effectiveness while ensuring image quality.

(2) Improvement of O/P ratio: Double optimization of image quality and cost

Secondly, the O/P ratio shows a trend of further improvement. The OD (Optical Distance) value is used as a key distance parameter from the backlight plate to the diffuser plate and plays a decisive role in the halo control of the TV picture. The smaller the OD value, the more accurate and effective the halo can be controlled, thereby significantly improving the visual effect and image quality of the picture. Currently, high-end Mini LED TVs have been able to control the OD value to an excellent level of around 5 mm.
Pitch, as a spacing parameter, refers to the distance between two adjacent LEDs. A smaller pitch value means that denser LED lamp beads can be arranged under the same screen size, thereby laying a solid foundation for improving the resolution and detail expression of the screen. From the perspective of internal logical correlation, under the same backlight scheme setting, the larger the OD value, the more obvious the halo diffusion phenomenon, which will have an adverse impact on the image quality; however, a moderate increase in the OD value will help increase the LED pitch value, thereby reducing the amount of LEDs and effectively reducing costs. In actual product development practice, manufacturers need to conduct comprehensive and comprehensive considerations based on the market positioning of the product and the needs of the target user group to determine the most suitable backlight solution and achieve a subtle balance and optimal configuration between image quality and cost.
Overall, 52DP research points out that the OP ratio (OD: Pitch) is gradually evolving from 1:2 in 2022 to about 1:3 in 2024. This significant trend not only represents a gradual reduction in the use of Mini LED chips, effectively reducing product costs, but also optimizes the overall picture quality of TVs to a certain extent, winning more favorable advantages for Mini LED TVs in the market competition. Cost advantage and market share expansion space.

(3) COB technology matures: a new engine for the high-end market | Finally, COB technology has achieved further maturity and development in 2024.
At present, POB technology has a high degree of maturity in terms of sorting, mounting, yield, supply chain supporting, etc., and its cost is relatively low, making it the mainstream packaging technology choice in the Mini LED backlight market. However, POB technology is limited by its inherent characteristics such as packaging structure, optical design and angle control. At present, it is mainly used in the field of large OD modules. In the high-end market and application scenarios with high customization requirements, its technical limitations are gradually highlighted and not the optimal solution.
In contrast, although COB technology is facing challenges of high technical difficulty and high cost at this stage, the entire COB packaging technology process from material research and development, technological innovation to production process optimization continues to mature and perfect. This positive change has effectively promoted the rapid decline in the cost of Mini LED COB, which in turn led to a steady increase in its market share. According to 52DP analysis, the increase in the proportion of COB is mainly due to the optimization and innovation of solutions and the active promotion of downstream terminal brands. At the solution level, COB adopts the light bar model, which effectively reduces the cost from substrate materials; in terms of downstream brand promotion, terminal TV manufacturers urgently need differentiated products different from POB solutions to enrich their product line systems and meet the needs of consumers. Increasingly diverse and personalized needs. With the joint efforts of both parties, the proportion of COB solutions in Mini LED backlight products will increase significantly to 20% in 2024, and it is expected that there will still be broad room for further expansion and improvement in 2025, and it is expected to become a competitive competition for Mini LED TVs in the high-end market. An important technical engine for differentiated breakthroughs and sustainable development.

2. Zhaochi Guangyuan: The key force promoting the development of Mini LED TVs

In fact, from the significant increase in the number of entry-level Mini LED TV products with 500 partitions or even lower partitions, to the optimization and improvement of the O/P ratio, to the steady increase in the proportion of COB technology products, the core logic all revolves around strengthening the cost-effective advantages of Mini LED TVs. This systemic change trend is inseparable from the close coordination and efficient cooperation of the entire supply chain system. Taking Zhaochi Guangyuan as an example, as a core participant in the Mini LED backlight field, it is at the forefront of the industry in many aspects such as product and production capacity layout, technical reserves, and customer verification, and plays a vital leading and promoting role.
In terms of product layout, in addition to conventional POB products, Zhaochi Light continues to increase its efforts to improve the COB product system. It has now successfully launched high-power COB white light strips, Mini COB blue light strips and Mini COB white light solutions (CSP) and other diversified product portfolios, which can fully meet the diverse needs of different customer groups and different application scenarios for Mini LED backlight products, providing a solid product foundation for the enrichment and innovation of Mini LED TV products.
From the perspective of technological innovation, in 2024, Zhaochi Optics will deeply upgrade and optimize COB Blu-ray technology. Among them, the dispensing process has achieved a major upgrade from face-shaped ball heads to M-shaped dispensing, effectively improving the optical performance and stability of the product; the OP value has been significantly upgraded from 1: 2.2 to 1: 3.5, significantly improving the product's comprehensive advantages in image quality and cost control further enhance the core competitiveness of the product in market competition.
At the industrial chain layout level, Zhaochi Guangyuan has unique advantages in vertical integration of the industrial chain. Especially at a time when the Mini LED TV industry is booming and backlight solutions continue to be iteratively upgraded, due to the significant differences in individual needs for backlight solutions between different brands and different products, the degree of customization of the Mini LED supply chain is increasing day by day. In this market context, terminal brands often tend to choose Mini LED backlight suppliers with strong control over upstream and downstream resources and high integration for in-depth cooperation.
Zhaochi Guangyuan undoubtedly accurately meets this market demand characteristic. Relying on the strong backing of Zhaochi Co., Ltd., Zhaochi Guangyuan, as a key part of Zhaochi Co., Ltd.'s LED industry chain, fully enjoys the dividend effect brought by Zhaochi Co., Ltd.'s vertical integration strategic layout. Upstream, Zhaochi Semiconductor's LED chip business provides Zhaochi Optoelectronics with a stable, reliable and technologically advanced chip supply source; downstream, Zhaochi's TV ODM business provides Zhaochi Optoelectronics 'products with a broad application platform and market channels. This collaborative integration advantage of the entire industry chain allows Zhaochi Guangyuan to have unique competitive advantages in terms of market trends, insight into technological development trends, and optimal allocation of resources. It can respond more accurately to changes in market demand and quickly launch innovative products and solutions that meet market demand.
Taking chip supply as an example, Zhaochi Semiconductor has successfully achieved a huge production and sales scale of 1.1 million wafers (4-inch chips) per month, and continues to make efforts in technology and product innovation. In the field of traditional direct-down backlights, the 4848 high-efficiency chip has been launched, which has effectively improved the backlight brightness and energy efficiency performance; in order to meet the market demand for COB solutions, a variety of high-voltage chips have also been launched in a targeted manner, including 0916 (6V), 1228 (12V), 1836 (24V), etc., providing strong chip technical support for Zhaochi Guangyuan's COB products and helping them stand out in the market competition.
Relying on its own product and technological advantages, Zhaochi Guangyuan's products are approved by Zhaochi TV ODM on the one hand.