The reason why Samsung Electronics is considering outsourcing the production of Micro LED modules for signage is due to manufacturing cost considerations. Recently, it was reported that Chinese companies’ micro LED module technology has improved significantly, so Samsung Electronics decided to directlyTake over OEM production from related module manufacturing companies. If Micro LED modules are purchased from BMTC and others, Samsung's manufacturing costs can be reduced by 5-10%.
At the same time, Samsung Electronics purchases Micro LED chips from Sanan and Nitron, which are not only used for home use, but also for Micro LED products such as signs, and directly carry out transfer, packaging and module processes. In Micro Among LED signage products, about 10% of the low-end lineup is outsourced, and Samsung Electronics is still directly responsible for the remaining 90% of the Micro LED module process.
When Samsung Electronics outsources the production of Micro LED modules for signage, Zhaochi and other companies. Provides modules to Samsung Electronics in the form of PCBA (PCB Assembly) to transfer Micro LED chips toon a printed circuit board (PCB). Samsung Electronics' latest home Micro LED is a low-temperature polysilicon (LTPS) thin-film transistor (TFT)-based product, but its brand name Micro LED is still a PCB-based product.
Samsung Electronics is expected to focus on seamless splicing technology to eliminate module fit and the boundaries between modules, while outsourcing the production of Micro LED modules for lower lineup signage. A Korean industry insider said that seamless splicing technology is better than Micro LED modules have higher added value. Since the Micro LED chip supply chains of each company are similar, the bonding and seamless technologies after the module production process determine the integrity of the product.sp;20-30% of the Micro LED signage product line, and for the remaining 70-80%, Samsung Electronics will directly execute the module process. Although the module technologies of various companies have become similar, the chip transfer process still plays a large role in Micro LED products.
At present, Micro LED has a low penetration rate due to its high price. The price of household Micro LED is far more than 100 million won. Therefore, Micro LED LEDs are mainly used in products around 100 inches or more, which are difficult to apply to existing liquid crystal displays (LCD) or organic light-emitting diodes (OLED) markets.
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