Small-pitch LED market share exceeds 20%, Nationstar Optoelectronics packaging expansion maintains high growth

In September, the prices of all products of Nationstar Optoelectronics display devices will increase by 10%. At the same time, other major domestic LED chip companies and LED screen companies have also increased the prices of LED products.

Rising raw material prices + strong market demand have driven this round of lamp bead price increases

From the supply side, there are two main reasons for this round of price increases by Nationstar Optoelectronics: 1) The shrinkage of the supply side + the increase in the price of upstream LED chips brought about by the increase in sapphire substrate prices; 2) The rising costs of LED packaging materials - gold wires and silver brackets. From the demand side, the small-pitch LED market continues to be booming. The mid-term report revealed that the performance of six listed screen companies all turned red. Small-pitch LED is the main catalyst for the performance growth of screen companies. According to LEDinside's estimates, as the market demand for small spacing increases and the density of lamp beads per unit area increases, the market demand for small spacing LED lamp beads in 2016 was 29 billion particles. By 2021, the consumption of small spacing LED lamp beads will reach 189.8 billion particles, and the annual compound growth rate of packaged lamp beads is as high as 46%.

Expansion of small-pitch LED packaging, production and sales maintain high growth

The company expanded the production of small-pitch LED packaging twice this year, especially the second round of 240 million expansion in May, which mainly targeted small-pitch LEDs. Based on current production capacity, the company's small-pitch LED packaging market share is over 20%, ranking first in the country, second only to Taiwan's Everlight. Orders are currently booming, and production expansion is still expected in the second half of the year. The company's small-pitch output value last year was about 250 million, and this year it expanded production by 100%+. According to the current price trend, the small-pitch production capacity may more than double this year. The company's small-pitch LED technology has outstanding advantages (0606 is under development and 0808 is in mass production), and the price advantage is obvious (about 10% cheaper than Taiwanese competitors). It is expected that the market share is expected to further increase in the future. In addition, the company continues to enrich its product portfolio and position itself in the high-end market. The outdoor 1921 package series launched is the world's smallest outdoor small pitch, filling the gap in the field of outdoor high-definition displays below P4.