​Han’s packaging and testing application has been accepted. How will the domestic LED packaging and testing equipment market change?

Recently, Han's Laser has dismantled another subsidiary and listed it on the GEM. It is Shenzhen Han's Packaging and Testing Technology Co., Ltd. ("Han's Packaging and Testing" for short), which has been accepted by the Shenzhen Stock Exchange. The IPO plans to raise 260 million yuan for the expansion of high-speed and high-precision wire bonding machines and the expansion of R&D centers.

According to public information, Han's Laser is a high-tech enterprise specializing in the R&D, production and sales of industrial laser processing equipment, automation and other ancillary equipment and key components. It has the advantages of vertical integration from basic components, complete equipment to process solutions, and is the world's leading overall solution provider for industrial laser processing and automation.

Currently, Han’s Laser is facing pressure in its development. According to Han's Laser's third quarter report of 2022, in terms of revenue, the first three quarters and the third quarter were 10.562 billion yuan and 3.625 billion yuan, respectively, down 11.47% and 18.43% year-on-year respectively; in terms of net profit attributable to the parent company, the first three quarters and the third quarter were respectively were 1.014 billion yuan and 382 million yuan, down 32.45% and 37.58% respectively year-on-year; excluding non-attributable net profit, the first three quarters and the third quarter were 818 million yuan and 211 million yuan respectively, down 35.45% and 57.64% respectively year-on-year. Han's Laser stated that the reasons for the large fluctuations in operating profit, total profit, income tax expenses, net profit, and net profit attributable to the parent company compared with the same period last year areAffected by the epidemic, the company's downstream customers have experienced insufficient demand and reduced orders.

Han’s Packaging and Testing, formerly known as Han’s Optoelectronics, was established in August 2007. Its main business is the R&D, production and sales of semiconductor and pan-semiconductor packaging and testing special equipment. The core product is wire bonding machines. In the LED field, its key customers include well-known packaging companies such as Nationstar Optoelectronics, Dongshan Precision, and Jingtai Optoelectronics, and it continues to promote batch sales of many well-known packaging companies such as Mulinsen, Zhaochi Co., Ltd., and Ledman Optoelectronics.

Han’s Packaging and Testing stated that the implementation of this project will promote the company’s production capacity, effectively alleviate production bottlenecks and production site restrictions, provide solid production capacity conditions for the company’s future rapid business growth, help the company further expand its business, increase product market share, and promote the further expansion of the company’s business scale.

The wire welding machine market has broad prospects, and opportunities for domestic equipment manufacturers have come.

Data show that the global wire welding machine market has grown steadily overall, from US$792 million in 2016 to US$2.16 billion in 2021, with a compound annual growth rate of 22.22%. China Business Industry Research Institute predicts that the global wire bonding machine market will reach US$2.195 billion in 2022.

Data source: China Business Industry ResearchCompiled by the hospital

The number of imported wire bonding machine products in my country will reach 31,134 units in 2021, a year-on-year increase of 93.5%. The import value reached US$1.586 billion, a year-on-year increase of 137.07%. It is estimated that in 2022, the number of imports will reach 40,437 units, and the import value will reach US$2.042 billion.

It is reported that at the domestic wire bonding machine level, the market is basically occupied by leading international manufacturers such as K&S and ASMPT. Imports account for a relatively large proportion, and the overall market size is equivalent to the import amount. Since 2021, semiconductor packaging and testing manufacturers have vigorously added new production capacity, the supply of domestic equipment has been continuously pulled upward, and the wire bonding machine market structure has gradually tilted towards domestic manufacturers.

Han's Packaging and Testing has accumulated a certain amount of experience in this area. Compared with similar products from leading international manufacturers such as ASMPT and K&S, its mainstream wire bonding machines no longer have much of a gap in major indicators. The company has 19 invention patents, and its product wire bonding machines continue to break through foreign technology blockades, effectively reducing domestic semiconductor manufacturers' dependence on overseas special equipment.

It is understood that in the first quarter of 2022, 100% of Han’s packaging and testing revenue will be provided by wire bonding machines. Data shows that in 2020, Han’s closed beta revenue was only 1.50 million yuan, with a net profit of less than 10 million yuan; after the company's performance exploded in 2021, the revenue exceeded 340 million yuan, and the net profit also exceeded 50 million yuan.

Han’s Packaging and Testing is expected to compete for the leading position in LED packaging and testing in the future

my country is the world leader in the LED field, and localization of equipment is an inevitable trend in the future. According to MIR DATABANK's forecast, the comprehensive localization rate of my country's packaging and testing equipment in 2021 is only 10%. It is expected that the comprehensive localization rate will reach 18% by 2025. Therefore, the prospects for domestic equipment factories are very bright.

LED packaging related equipment includes die bonding machines, wire bonding machines, spectrometers, taping machines, inspection and repair machines, etc. Currently, Han's Packaging and Testing has been involved in LED die bonding machines, wire bonding machines, spectrometers, taping machines, etc. In the field of domestic wire bonding machines, Han's family leads the packaging and testing remote industry. In terms of shipments in 2021, it has three points with ASMPT and K&S.

In recent years, Chinese LED equipment factories have made great progress, especially the localization of LED die-bonding machines (localization can reach more than 90%), dispensing, optical sorting, testing and other equipment.

Han’s Packaging and Testing plans to raise funds to focus on developing wire bonding machines. In fact,Based on its own advantages and future market prospects, once it secures the top spot in wire bonding machines, it will be a matter of course for it to expand its market share in die bonding machines, spectrometers, taping machines and other products.

It is reported that Han’s Packaging and Testing not only develops the field of LED packaging and testing, but also expands into the field of IC packaging and testing that requires higher equipment accuracy. In May this year, when Han's Optoelectronics changed its name to Han's Packaging and Testing, Zhu Shaode, director of Han's Packaging and Testing products, said, "Currently, the company's main business covers not only the field of LED optoelectronics, but also the field of semiconductor IC packaging and testing."

Now that the blueprint has been drawn, the future depends on the performance of Han's Packaging and Testing itself.