Hanbo High-tech invests 5 billion in Mini LED and other projects

5 billion invested in the construction of Bojing display technology project

Hanbo High-tech announced that in order to expand and enrich the company's industrial chain, the company signed an investment agreement with the Chuzhou Nanqiao Economic Development Zone Management Committee to invest in the construction of Bojing display technology project in Chuzhou Nanqiao Economic Development Zone.

The project mainly invests in Mini LED backplane, LCM, backlight module and PCB/FPC projects. The total investment in the project is RMB 5 billion, and the implementation entity is the company's holding subsidiary Bojing Technology (Chuzhou) Co., Ltd. (hereinafter referred to as "Chuzhou Bojing").

At the same time, in order to promote the project, Hanbo High-tech and Chuzhou Xizheng Industrial Fund Partnership (Limited Partnership) (investors determined by the Chuzhou Nanqiao Economic Development Zone Management Committee) plan to increase capital in Chuzhou Bojing in the form of currency. The capital increase will be as follows:

After the capital increase is completed, the registered capital of Chuzhou Bojing will increase from RMB 141.5 million to RMB 800 million. It is worth noting that Chuzhou Bojing was established on December 16, 2021. It is currently in the construction period and has not yet officially launched business activities.

Hanbo High-tech pointed out that according to the company’s development plan and operating needs, the company invested in this project with Chuzhou Bojing as the main body. The project is planned to be built into a comprehensive industrial park, which will help expand the company’sIndustrial chain and industrial scale; the company and its investors will increase capital in it. This investment will help promote project construction, further enhance the company's overall profitability and market competitiveness, and lay the foundation for subsequent development.

It is reported that Hanbo High-tech is a one-stop comprehensive solution provider for backlight display modules. Its traditional product, LED backlight display module, can provide light source for LCD panels.

The Bojing Display Technology project is not the first time Hanbo High-Tech has planned Mini LED technology this year. It is reported that on October 18, Hanbo High-tech also announced that it plans to raise no more than RMB 750 million, all of which will be used for projects with an annual output of 9 million sets of Mini LED light panels (Phase I). The project will expand the production scale of Mini LED products and improve the production level of Mini LED products by building a new production plant and purchasing advanced and efficient production, inspection and testing equipment. The Mini LED backlight display module products produced will be mainly used in notebook computers, tablet computers, VR, car screens and other fields.

Mini/Micro LED, from big to strong

Currently, market participants are actively deploying Mini/Micro LED technology, hoping to accelerate the commercialization of Mini/Micro LED.

On the one hand, the chip side is the well-deserved technological commanding heights of the Mini/Micro LED industry.Cooperation between leading companies has become an invariant choice for many industrial chain companies.

Among them, Sanan Optoelectronics and TCL Huaxing jointly established Xinying Display Technology and reached a strategic cooperation with Chenxian Optoelectronics, an affiliate of Visionox; Leyard has joined hands with Epistar, and the two parties have built a Micro LED mass production base in Wuxi. The current orders are relatively full. As of the end of November in 2022, Leyard Micro LED has signed nearly 400 million new orders; BOE plans to spend 2.1 billion yuan to invest in Huacan Optoelectronics and become the largest shareholder to jointly develop Mini/Micro LED business; Hisense Video is actively investing in the upstream by continuously increasing its holdings in Qianzhao Optoelectronics.

On the other hand, although the external situation is not yet clear and the economic environment has not yet recovered, the enthusiasm of enterprises for investment in Mini/Micro LED has not weakened.

The refinancing project of Jucan Optoelectronics has been approved by the Shenzhen Stock Exchange. The project focuses on the research and development and manufacturing expansion of Mini/Micro LED chips, with a total investment of 1.55 billion yuan; Nanjingguang’s 740 million fund-raising application has been approved, and the funds raised will be invested in Mini/Micro LED display module production projects, etc.; Hongguang Semiconductor has released three placements of funds since November last year, and the investment projects all include MiniLED; Bomin Electronics' 1.5 billion fixed-increase fund-raising project was approved on September 5. Among the investment projects, the new generation electronic information industry investment and expansion project (Phase I) will be completed after the completion of the project.The annual printed circuit board production capacity is 1.72 million square meters, and the products are mainly used in Mini LED, industrial control, new energy vehicles and other related fields.

Finally, the capital market is also enthusiastic about Mini/Micro LED.

Saphlux, a supplier of in-situ quantum dot Micro LED display solutions, announced the completion of a 110 million yuan Series B financing on December 22; Novos Technology completed a new round of financing in October. The company is mainly engaged in Micro LED chip and device design, R&D, manufacturing and sales; Fluff Quantum completed tens of millions of yuan in Pre-A round financing in October. The company's quantum dot color conversion optical film can be used with LCD, Micro The combination of LED and OLED screens improves the resolution and color gamut of the display. In September, Ipas announced the completion of tens of millions of yuan in Series A financing. The company is an advanced material manufacturer in the fields of Mini/Micro LED display carrier boards and IC packaging such as BGA, CSP, FCCSP, and FCBGA.

Summary

At present, the industry and capital circles are enthusiastic about Mini/Micro LED, and major companies are also accelerating their research and development of Mini/Micro LED products and technologies. In this context, although Mini/Micro LED is still some distance away from large-scale commercial application, especially Micro LED currently still faces difficulties in chip mass production, mass transfer, and production yield, but the broad market prospects of Mini/Micro LED technology will not change.

In terms of Mini LED, taking automotive as an example, LEDinside, the optoelectronics research division of TrendForce, pointed out that thanks to the simultaneous promotion of Chinese and American car manufacturers, the shipment volume of automotive Mini LED backlight displays will be approximately 140,000 pieces in 2022, and the shipment volume is estimated to reach 450,000 pieces in 2023. By 2024, the shipment volume of automotive Mini LED backlight display will increase significantly, and the shipment volume will reach nearly 1 million pieces;

In terms of Micro LED, LEDinside, the optoelectronics research division of TrendForce, is optimistic about the development of Micro LED in head-mounted AR penetrating smart glasses, wearable smart watches, and automotive smart cockpits and transparent display products. It is estimated that the chip output value of various Micro LED display applications will be US$542 million by 2024. It is estimated that after Micro LED technology matures by 2025, the output value will have explosive growth.

At present, epidemic prevention and control measures have been gradually relaxed, and the economic recovery is expected to bring about the recovery and development of demand. The future of Mini/Micro LED is a "sea of stars." And enterprise在今天走的每一步，都将成为明天布局的重要一部分。