LED chipmaker Epistar Corp (晶電) yesterday said that a fully owned unit is in talks with Chinese LED display maker Leyard Opto-Electronic Co (利亞德光電) to build the world’s first micro-LED display manufacturing site in China.
The unit, Yenrich Technology Corp (元豐新科技), and Leyard have agreed on an investment framework to create a joint venture to develop and manufacture mini-LED and micro-LED displays, Epistar said in a filing with the Taiwan Stock Exchange.
The “investment would only be made after legal procedures are completed,” Epistar said.
Epistar did not disclose the size of the investment.
Shenzhen, China-listed Leyard said that the companies plan to spend 1 billion yuan (US$142.8 million) to build the manufacturing site in Wuxi, Jiangsu Province.
The companies aim to form a joint venture within six months of gaining approval from their respective boards by Tuesday next week, Leyard said in a statement on its Web site published on Wednesday.
The joint venture would have initial capital of 300 million yuan, Leyard said.
The companies aim to start mass production of displays in 2023, it said.
The Wuxi facility would be the world’s first micro-LED display manufacturing site when it starts operations, Taipei-based market researcher TrendForce Corp (集邦科技) said.
The global micro-LED display market is expected to have a strong compound annual growth rate of 58 percent through 2023 due to the adoption of ultra-high-definition 8K technology, TrendForce said.
The Tokyo Olympics in July and August next year would boost adoption of 8K technology, it said.
The global mini-LED display market is to surge 31 percent to US$2.6 billion this year from last year, with Leyard taking top spot with a 22.5 percent market share, the researcher said.
The top six mini-LED display companies are from China, while Samsung Electronics Co is to be No. 7 with a marginal share of 2.3 percent this year, it said.
TrendForce said that it expects competition would heat up, as even consumer electronics firms such as Sony Corp and LG Electronics Co are developing mini-LED and micro-LED displays.
Macroblock Inc (聚積), which makes driver ICs for flat panels, is collaborating with the Industrial Technology Research Institute (工研院) to develop micro-LED display modules, TrendForce said.
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