At the crossroads of display technology iteration, Mini LED backlighting technology is sparking a display revolution thanks to its mature industry chain and significant image quality improvements. Recently, at the TrendForce New Display Industry Seminar, Liao Yansuo, FAE Manager of Shenzhen MTC Optoelectronics Technology Co., Ltd., a subsidiary of MTC Group, attended and delivered a speech, providing an in-depth analysis of the technological evolution, market trends, and commercialization path of Mini LED backlighting technology.
Liao Yansuo, FAE Manager of Shenzhen Guangyuan
Trend Evolution: From Technological Breakthrough to Market Penetration
The rise and development of Mini LED backlighting technology is a systematic technological counterattack launched by the LCD camp against the threat of OLED technology.
On the one hand, Mini LED backlight technology, through local dimming technology, makes the contrast of LCD approach that of OLED in the form of "backlight upgrade"; on the other hand, it strengthens its cost advantage, enabling Mini LED backlight technology to establish a dominant position in multiple market segments.
Especially in the television sector, Mini LED TV shipments reached 8.2 million units in 2024, a 100% increase compared to the same period last year. In terms of penetration rate, the penetration rate of Mini LED TVs increased from 2% in 2023 to 3.8% in 2024; while the penetration rate of OLED TVs was 3.2% in 2024—that year, Mini LED TVs surpassed OLED TVs in penetration rate for the first time.
Liao Yansuo pointed out that current consumer demand for televisions has shifted from functionality to personalization, with growing demand for scenarios such as home theaters driving the continued development of televisions towards larger screen sizes. This is evident in Mini LED TVs, where 65-inch, 75-inch, and 85-inch sizes have clearly become mainstream. In terms of price, the mainstream price of Mini LED TVs in 2024 is expected to be above 10,000 yuan. It is anticipated that by 2025, technological iterations and product upgrades will drive market penetration into lower-tier cities, further propelling Mini LED TVs towards industrialization and commercialization.
It is worth noting that the improvement in image quality from increasing the number of backlight zones exhibits a "diminishing marginal effect." Specifically, the improvement in screen contrast is most significant when increasing the number of zones from 100 to 300; however, the effect of further increasing the number of zones gradually diminishes.
This is mainly because the essential evaluation dimension of display technology lies in the subjective perception system of the human eye, and the improvement of technical parameters does not necessarily mean the improvement of human visual experience. Based on this, considering both picture quality and cost, and the choice of LCD panels for different products, Liao Yansuo proposed that for a 5000:1 high contrast ratio LCD panel, a Mini LED backlight zone number of around 200 can meet the needs of most consumers; while for a 2000:1 LCD panel, a zone number of more than 3000 is required.
In terms of end products, monitors with 1,000-2,000 zones can meet the needs of professional users for image quality and performance while maintaining reasonable costs and prices, achieving a balance between technology and the market. This is the mainstream specification for current monitor products.
The situation for television products is slightly more complex. The 200-300 zone range is a watershed for Mini LED backlight technology performance, and Mini LED TVs in this range are currently the mainstream mid-range models. High-end Mini LED TVs pursue the ultimate picture quality experience, with 2000-3000 zones. As the technology matures further, the term "Mini LED+" with over 3000 zones will become an even higher term.
Materials, Processes, Design, and Industry Collaboration: MTC Optoelectronics Explores the Commercialization Path of Mini LED Backlighting <br /> The continuous improvement of cost-effectiveness is the underlying logic for increasing the penetration rate and accelerating the commercialization of Mini LED backlighting products. Therefore, continuously reducing costs is an eternal pursuit in the industry. This process inevitably involves further optimization of material costs.
Liao Yansuo pointed out that currently, QD (Quick Diameter) components, LED Boards, and Driver ICs account for a large proportion of the cost structure of Mini LED backlight products. Among these, the use of QD improves the display performance of Mini LED backlights, including color gamut, brightness, and contrast. Replacing traditional QD boards with QD films and developing high-voltage, low-current driving solutions can optimize QD costs.
An LED board includes the LED assembly, PCB, and associated costs. Optimization methods include:
1) Chip: High-voltage chip + secondary optical design. Using a high-voltage chip can reduce the number of LED chips used, but it also leads to uneven brightness. By combining a white light solution with a secondary optical design, the chip's light emission angle and operating power (OP) can be improved, thus enhancing cost-effectiveness.
2) PCB substrate: shape and thickness. Using harpoon boards, U-shaped boards, and single-strip boards can reduce PCB board area and improve single-board utilization; when combined with high-voltage chips, the number of LED chips connected in series can be reduced, PCB wiring can be simplified, and thus production costs can be reduced.
In terms of driver ICs, a high-voltage chip + AM driver + multi-channel approach is adopted to maximize IC driving efficiency and ultimately reduce costs.
In summary, the cost reduction path for Mini LED backlighting encompasses three main dimensions: material innovation, process breakthroughs, and design iteration. For MTC Optoelectronics, the cost reduction path also includes supply chain collaboration.
Currently, MTC Group has formed a synergistic development pattern of "chip + component/module" in the Mini LED backlight field. At the same time, relying on MTC Group's traditional TV ODM business, MTC Optoelectronics has a high sensitivity and control over the trend of technology and product iteration.
Driven by both technology and production capacity, MTC is building a new display ecosystem . Flip-chip COB packaging is expected to become the mainstream high-performance solution with long-term cost-reduction advantages. Based on this trend, in 2024, MTC Group Chairman Gu Wei led Shenzhen Guangyuan to expand its Mini COB backlight module production lines, making MTC Guangyuan the world's largest Mini COB backlight module manufacturer with a total capacity of 50 COB lines.
In 2025, Mr. He Shengbin, Vice President of the Group, concurrently served as Chairman of Shenzhen Guangyuan, which led to the formal integration of the three major smart terminal display businesses under Zhaochi Group: display terminal business, COB direct display business, and Mini LED backlight business.
Through these series of actions, the synergistic advantages of MTC Optoelectronics' industry chain have been amplified. MTC Group's accumulated core COB technology in the direct-view display field, as well as its high-quality customers in the display terminal business, fully empower MTC Optoelectronics, assisting in the development and expansion of its Mini COB backlight business.
In terms of products, MTC Optoelectronics has formed a full matrix of product layout.
On the other hand, optimizing a single raw material has limited impact on upgrading display terminal products, while a comprehensive solution can achieve all-round optimization, resulting in a better solution in terms of picture quality and cost-effectiveness.
Currently, MTC Optoelectronics has established a clear strategy for different regions and product types.
For example, a Mini LED TV with 300 zones achieves ultimate cost-effectiveness through a combination of high-voltage chips, single PCB, and POB white light; while for Mini LED TVs with more than 2000 zones, a solution of harpoon PCB, COB blue light, and QD is adopted to break through the picture quality threshold.
Conclusion <br /> The future of display technology lies not in the ultimate pursuit of parameters, but in building a virtuous cycle between technology and business. MTC Optoelectronics, with its advantage of vertical integration of the industry chain, continuously promotes the commercialization of Mini LED backlighting through cost reduction via technological innovation and segmented market coverage, leading a "revolution of inclusive value" in Mini LED backlighting.
This is just a glimpse into the achievements of MTC Group in the ultra-high-definition display field. Under its integrated operation model for smart terminal display business, MTC Group has achieved a positive situation where direct-view technology, backlight technology, and smart display business mutually promote and synergistically develop. While consolidating its existing technological strength and market position, the Group will continue to lead the development of the ultra-high-definition display industry. (Image source: MTC Co., Ltd.)
