The chairman takes charge to build the world's largest COB backlight module factory
In 2024, Gu Wei, chairman of Zhaochi Group, personally took charge and pointed out the direction for the upgrading and development of Zhaochi Optoelectronics. Under the leadership of Mr. Gu, Zhaochi Group is united as one, and Zhaochi Optoelectronics has also ushered in all-round upgrades in the field of Mini LED backlight.
Among them, the most important change is that by expanding the Mini COB backlight module production line, Zhaochi Optoelectronics has become the world's largest Mini COB backlight module manufacturer.
Looking back on the past, in terms of Mini COB, Zhaochi Guangyuan completed the construction of 5 Mini COB lines in April 2021. By 2024, Zhaochi Optoelectronics has successfully added 45 COB lines, and currently ranks first in the world in Mini COB backlight module production capacity with 50 COB lines.
At the same time, in 2024, Zhaochi Optoelectronics also successfully launched high-power COB white light strips, Mini COB blue light strips and Mini COB white light solutions (CSP), continuing to improve the Mini COB backlight module product layout.
In terms of technology, Zhaochi Optoelectronics continues to play a pioneering role as a leading enterprise. The upgrade of COB blue light technology in 2024 mainly includes:
01
Dispensing upgrade
Upgrade the surface ball head to M-shaped dispensing. Through the precise control of M-shaped dispensing, Zhaochi Optoelectronics has improved the optical performance of Mini COB backlight module products, improved production efficiency, and thus improved the image quality of smart display terminal products.
02
OP value increased
The OP value was upgraded from 1:2.2 to 1:3.5, reaching the industry-leading level. Increasing the OP value can reduce the usage of Mini LED chips, which is an important development direction for Mini LED backlight products to enhance their cost-effective advantages.
Come 2025, Mr. Gu once again announced with a forward-looking vision that Mr. He Shengbin, the vice president of the group, will concurrently serve as the chairman of Shenzhen Guangyuan.
Mr. He Shengbin was originally in charge of the display terminal business and COB direct display business of Zhaochi Group. This major adjustment means that Zhaochi Group’s display terminal business and COB direct display industryThe three major smart terminal display businesses, i.e., Mini LED backlight business, have been officially integrated. The COB core technology accumulated by Zhaochi Group in the field of direct display, as well as the high-quality customers gathered in the display terminal business, will also fully empower Zhaochi Optoelectronics and fully assist the development and growth of its Mini COB backlight business.
Expanding the production of Mini COB backlight, the three core competitiveness of Zhaochi Optoelectronics
In 2024, global shipments of Mini LED TVs will increase to 8.2 million units, a year-on-year increase of 100%, and the penetration rate will increase from 2% in 2023 to 3.8%, surpassing OLED TVs for the first time. In the Mini LED backlight market, packaging technology has also undergone new changes.
Currently, POB has higher maturity and lower cost in terms of sorting, patching, yield, supply chain support, etc., and is the mainstream packaging technology in the Mini LED backlight market. However, due to limitations in packaging structure, optical design and angle control, POB is commonly used in large OD modules, while in high-end markets and applications that require a high degree of customization, COB is the main solution. At the same time, with the continuous development of COB packaging technology in terms of materials, technology, production processes, etc., according to experts, Research pointed out that the proportion of COB solutions in Mini LED backlight products will increase to 20% in 2024, and it is expected that there is the possibility of further improvement in 2025.
Zhaochi Optoelectronics has established its position as the world's largest COB backlight module factory through its production expansion. In addition to its forward-looking layout of the Mini COB backlight market, it is also giving full play to its three core competitiveness.
Advantages of vertical integration in the industry chain
The upstream is Zhaochi Semiconductor’s LED chip business, and the downstream is Zhaochi Co., Ltd.’s display terminal business. On the one hand, Zhaochi Optoelectronics' products are widely used in terminal TVs through the Zhaochi Display Terminal Business Platform. On the other hand, Zhaochi Optoelectronics directly cooperates extensively with domestic and foreign customers such as Xiaomi, Skyworth, Konka, BOE, Samsung, Sharp, LG, and Sony.
After Zhaochi Group realizes the integrated operation of its three major smart terminal display businesses, Zhaochi Optical Yuan’s advantages will be fully utilized. Its sensitivity to market trends and technological development trends will be enhanced, and its voice in the market will also be further upgraded.
It is worth mentioning that Zhaochi Group’s chip business and display terminal business have grown into industry leaders, which can fully empower Zhaochi Optoelectronics.
In terms of chips, Zhaochi Semiconductor has achieved a monthly production and sales scale of 1.1 million wafers (4-inch wafers), and is the world's largest production base for digital intelligent compound semiconductor optoelectronic devices and LED chips. In terms of technology and products, Zhaochi Semiconductor launched a variety of high-voltage chips in 2024, including 0916 (6V),1228 (12V), 1836 (24V), which can fully meet the product needs of Mini COB backlight solutions.
In terms of display terminal business, RUNTO data shows that Zhaochi’s total TV shipments in 2024 will exceed 12 million units, ranking second among professional TV ODM manufacturers in the year, with a year-on-year growth of 13.3%.
Technological accumulation of established backlight module factories
Zhaochi Optoelectronics has been laying out flip-chip technology since 2016, and launched the research and development of Mini LED backlights in 2018. It is one of the earliest companies in China to achieve mass production of Mini LED backlights. The product layout is complete, covering various technical routes such as POB, COB, NCSP, and mass production is stable.
Advantages of Intelligent Manufacturing
Zhaochi Group has formed intelligent manufacturing competitiveness of "agile response, high quality and efficiency, and on-time delivery" in the field of "intelligent manufacturing", and Zhaochi Optoelectronics itself has passed the Level 3 maturity assessment of intelligent manufacturing capabilities. Zhaochi Optoelectronics integrates the four core capabilities of fully intelligent logistics, production informatization, automatic production planning, and intelligent warehousing, and makes full use of intelligent manufacturing to empower Mini LED backlights.
Comprehensively leading the era of MLED ultra-high-definition display with direct display + backlight dual tracks
Looking back on the past, Zhaochi Group has become famous in the field of LED direct display by taking COB integrated packaging technology as its entry point.
Specifically, the market share of Mini RGB chips of Zhaochi Semiconductor, a subsidiary of the group, is as high as 50%; while Zhaochi Crystal Display has addressed the two major pain points of low pass-through yield rate and consistent display effect. It has done a lot of integration of technology, equipment, production processes, etc., collaborated with the supply chain, and innovated massive transfer technology.
In the field of direct display, Zhaochi Crystal Display's current monthly COB production capacity has reached 30,000 square meters. It is the COB panel manufacturer with leading technology and the largest production capacity in the world, and its market share ranks first in the industry. In recent years, COB has rapidly gained market recognition, accelerated penetration in the Mini/Micro LED display field, and led the upgrading and iteration of display technology in the indoor small-pitch market. In this wave of development, Zhaochi Crystal Display has played an extremely critical role.
Returning to the present, from the expansion of Mini COB backlight production to the integration of smart terminal display business, this series of decisions will further deepen the group's vertical integration advantages in the industrial chain layout, forming a multi-directional empowerment situation in which direct display technology and backlight technology, Mini LED backlight and display terminal business develop collaboratively and promote each other.
Seizing opportunities for display technology upgrades to drive future vision
From a micro perspective, Zhaochi Group has relied on its past experience and advantages to actively expand production of Mini COB backlight technology, integrate three major smart terminal display businesses, break the group's internal boundaries, and enhance the group's market competitiveness in the field of smart display.
From a macro perspective, Zhaochi Group’s series of layouts are in line with the general trend of display technology upgrades.
On the one hand, in terms of direct display technology, Mini/Micro LED has become a consensus as the mainstream display technology in the future. Zhaochi Crystal Display entered the market with COB technology in 2021, promoting and witnessing the arrival of the first year of Mni RGB commercialization. At present, COB technology has become the endorsement of high-end products in the ultra-large size market of more than 100 inches;
On the other hand, in terms of TV products, terminal TV companies such as TCL, Sony, Hisense, and Changhong have recently integrated AI large models. The model of human-computer interaction has been reshaped, and the TV viewing experience is being refreshed by AI. This trend is prompting terminal display products to continuously upgrade their hardware to meet the needs of the AI era. Mini COB technology can bring more stunning visual effects and has broad application prospects in the high-end Mini LED TV market, meeting the demand for terminal products in the AI era. Zhaochi Optoelectronics’ production expansion will promoteMini COB technology is accelerating its maturity, promoting the popularization of high-end image quality and injecting new vitality into the development of the entire Mini LED backlight market.
Overall, Zhaochi Group will realize the coordinated development and common growth of the three major product lines of smart display terminals, and become a big step for Zhaochi Group to transform and upgrade to high technology. In the future, Zhaochi Group will continue to lead the development of Mini/Micro LED ultra-high-definition display technology and bring more exciting visual experiences to consumers around the world.
ANNA