Mini LED backlight display technology is going to be adopted by Apple and Samsung for tablets and TVs launching next year. Meanwhile, we have seen several Micro LED technology breakthroughs recently with AUO, PlayNitride and ITRI showcasing their prototypes for innovative applications.
To speed up Micro/Mini LED display technology, integration within the supply chain is a major strategy recognized by industry players. Epistar and Lextar, the two Taiwan-based LED chip manufacturers, are merging with the aim to leverage their expertise and avoid duplicated investment in new technology and equipment so that they can achieve progresses more efficiently.
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With the establishment of the new holding company ENNOSTAR, Epistar will concentrate on epitaxy wafer and chip production while Lextar focuses on package and modular technology. All together they can offer comprehensive solutions via technology integration. The two parties first target Micro/Mini LED display technologies and then they will expand the collaboration to sensing technologies like VCSEL and data transmitting technologies of 5G and RF.
As Lextar is part of the AUO group, this connection between Epistar and Lextar can also link up with panel manufacturer supported by AUO, forming a vertical integration from LED wafer production to panel manufacture. Apart from the technology development aspect, this partnership can also extend their collaborations with other big names, covering Apple and non-Apple partners.
We have already learned the collaboration between Apple and Epistar for Mini LED. On top of that, adding the force of Lextar and AUO in package, module and panel, the partnership with Apple might further expand. Chairman of Epistar, Biing-Jye Lee, once mentioned that system designers will play a key role in building Micro/Mini LED display products. With particular requirements and specifications provided by brands are set, a team who is able to provide a solution based on its expertise in each phase will stand out from the rest.
On the other hand, Samsung is reportedly launching more than 2 million units of Mini LED backlit TVs next year and has asked many LED makers to send samples for the new products including Epistar and Lextar. They might also have an edge to break into the supply chain of Samsung as AUO has been a partner with the Korean giant for several TV products,
Roger Chu, analyst of TrendForce, indicated that the collaboration between Epistar and Lextar can dilute the pressure of large investment in Mini LED equipment for mass production. In addition, it also enables an integration from wafer to panel for supporting a wider range of technology applications. Moreover, this connection provides a platform for all of them to access the brands they did not worked with before so they can further expand the business opportunities of Micro/Mini LED with new partnerships.
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