Epistar also revealed that it is currently testing the application of LCD-backlit Mini LED chips, but due to the lack of appropriate local dimming driver ICs, its development is not yet mature.
It is estimated that between 2017 and 2023, the annual average compound growth rate of the LED industry will reach 8%, mainly due to the growth of Mini LED and MicroLED. The global Mini LED and MicroLED module will also reach US$4 billion in output value, including Mini LED and The output value of the MicroLED chip will be up to 400 million U.S. dollars.
Epistar expects the Mini LED to account for 30-40% of its total capacity by 2020, and plans to start production of MicroLED by 2020.
As Chinese manufacturers gradually increase new production capacity since the end of 2017, there is a trend of oversupply in LED chips. The demand for LED backlighting will bottom out in the second quarter of 2018 and then rebound in the next quarter.
Due to the strong demand from local government outdoor LED lighting projects in China, Epistar has fully utilized AlGaInP LED chip production capacity and plans to expand its production capacity by 25%. Currently, the revenue ratio of AlGaInP LED has risen to 40%.
At the same time, Epistar is testing VCSEL (Vertical Cavity Surface Emitting Laser) diodes for 3D sensors and may begin small-scale trial production in the fourth quarter.
Epistar expects future business growth will come from filament bulbs, lamps, outdoor and commercial lighting, plant growth lighting, automotive exterior and interior lighting, infrared LED sensing, ultra-fine pixel pitch displays, and Mini LED and MicroLED applications.