Since 2023, with continuous technological upgrades and cost reductions, the penetration rate of COB technology has steadily increased, gradually occupying an important position in the LED industry. As a subsidiary of MTC Co., Ltd., MTC Crystal Display has achieved rapid development in the COB technology field through technological innovation, capacity expansion, and other market layouts, further promoting the popularization of COB technology.
At the 2024 Self-Emitting Display Industry Symposium, Ye Yuqing, Product Director of MTC Display, showcased the company's remarkable achievements and valuable experience in promoting the high-quality development of COB technology, from products to applications.
Ye Yuqing, Product Director of MTC Display
COB penetration continues to rise . According to a report published by TrendForce in September 2023, the compound annual growth rate (CAGR) of LED displays is 9% from 2022 to 2027, with P2.5 and below small-pitch LED displays showing a CAGR of 12%, and P1.0 and below ultra-small-pitch LED displays showing a CAGR of 34%. With technological advancements, the application of small-pitch LED displays is gradually increasing in various fields, especially in the consumer and commercial sectors. For example, Mini LED direct-view TVs have begun to enter the home market, demonstrating the application potential of LED technology.
The evolution of LED packaging technology is also worth noting. Before 2022, the packaging technology for small-pitch displays was mainly based on conventional SMD; the advancement of COB technology in the second half of 2022 changed the market landscape. Although SMD still dominates in products with a pitch of P1.5 and above, COB solutions began to be introduced in products with a pitch of P1.2 and below.
In 2023, the penetration rate of COB technology significantly increased in products with pixel pitch above P1.5, competing with SMD; in products with pixel pitch of P1.2 and below, MiP technology derived from SMD competed with COB, with COB's penetration rate exceeding 50%. In fact, the diversification and healthy competition of packaging technologies have promoted innovation and development in the LED industry, and the smaller the pixel pitch, the more obvious COB's competitive advantage. Currently, COB technology has achieved a dominant position in products with pixel pitch of P1.2 and below.
According to market data, COB technology products accounted for 17.2% of the market share in 2023 in terms of sales revenue, and the annual sales growth rate of COB small-pitch products was 150% in 2023, demonstrating the strong momentum of COB products in the direct-view display market. Meanwhile, with the maturity of the process chain, the improvement of equipment precision, the decrease in the cost of core components, and the increase in total COB production capacity, the cost-effectiveness of COB products continues to improve, and the market size continues to expand.
In terms of production capacity, according to TrendForce data, COB's capacity in 2022 was 21,400 square meters per month. With the continuous expansion of related companies, it is estimated that it will reach 58,600 square meters per month by the end of 2024.
MTC Display is a major driver of COB capacity expansion. In 2022, the company's capacity was less than 10,000 square meters, but by the first half of 2024, the monthly capacity had reached 16,000 square meters. As of October 2024, MTC Display's monthly capacity had further increased to 20,000 square meters.
Design, process, and intelligent manufacturing have been comprehensively optimized . Founded in 2005, MTC initially focused on home audio-visual consumer products such as set-top boxes. In 2007, it successfully entered the TV ODM field, officially launched its LED business in 2011, and introduced COB technology to enter the MLED field in 2021. Currently, MTC's business covers home networking, smart displays, and the entire LED industry chain. Furthermore, with the successful acquisition of MTC Ruigu, MTC has also successfully entered the optical communication industry, starting with optical devices and modules, and has initially built a vertical industry chain for optical communication devices, modules, and chips.
In the MLED field, MTC has completed the vertical integration of the MLED industry chain, and MTC Crystal Display continues to lead the innovation of ultra-high-definition display technology through design innovation, process upgrades, and intelligent manufacturing upgrades.
In terms of design, MTC Crystal Display has taken on challenges in the cabinet structure, three-in-one HUB board, and LED light board of COB products. Through innovation and improvement of product structure, it brings COB products to the industry that are simpler in design, easier to install, more convenient to transport, more stable, more integrated, and more cost-effective.
For example, MTC Crystal Display developed the industry's first 600×675 dual-chassis COB module product, which can save 50% of assembly time; it innovated the design of the control board, integrating the control card into the power board in a chip-level mode for the first time, which improved product stability and simplified the structure; and it reduced costs and improved the utilization rate of power supply and controller through the three-in-one integrated control board.
In terms of manufacturing processes, MTC Display has completed over 500 process innovations to date, including equipment upgrades, materials research, optical research, and PCB circuitry research. In terms of equipment, leveraging its experience in large-scale manufacturing, MTC Display has collaborated with partners on secondary software and hardware development, further improving production efficiency and product quality.
In terms of intelligent manufacturing, MTC Display began researching production line-level calibration technology early in its establishment to address the COB calibration problem in large-scale manufacturing. Currently, over 90% of MTC Display's shipments utilize factory-level online calibration technology. This technology allows customers to flexibly prepare inventory, avoid the hassle of numbering and assembling entire screens for calibration, improve assembly efficiency, and accelerate on-site engineering implementation.
In addition to hardware upgrades, MTC Display has also achieved comprehensive integration of IT, OT, and CT through its industrial big data platform (MTC Cloud), ensuring efficient interconnection of information among its subsidiaries in the LED industry chain. Taking the chip side as an example, through this platform, MTC Display can obtain the parameter distribution of all chip products of MTC Semiconductor in real time, thereby improving production efficiency and stabilizing product quality, and providing great convenience for the subsequent production of COB panels.
Continuous Innovation and Upgrading of Products and Applications <br /> Building upon the aforementioned technological and process innovations, MTC Display has also made in-depth arrangements for product expansion.
With the diversification of customer needs, the company has gradually achieved full coverage of its product line, and currently has eight product series: Colorful Series, Fantasy Series, Colorful Pro Series, Colorful Plus Series, Guardian Series, Crystal Series, Crystal Screen Series, and Smart Screen (TV). These product series cover different display pitches and are continuously upgraded in terms of display technology and performance.
Meanwhile, MTC Display is continuously exploring future growth markets, currently focusing its strategy on the LED all-in-one display market. Statistics show that there are over 100 million indoor commercial display spaces worldwide, primarily used in conferences, educational settings, business settings, and theaters. LED all-in-one displays are particularly suitable for spaces smaller than 10 square meters. With technological advancements and cost reductions, market demand is expected to grow further.
Specifically, according to TrendForce's analysis, in 2023, LED all-in-one machine manufacturers increased their promotional efforts globally, especially in Europe, America, and Asia, driving continued growth in shipments, with overall shipments increasing by 34% year-on-year. With more manufacturers participating, global LED all-in-one machine shipments are expected to reach 6,400 units by 2024.
In developing LED all-in-one PCs, MTC Display adheres to three principles: standardization, intelligence, and ecosystem development, while focusing on three key areas: AI intelligent assistance, IoT centralized management, and content aggregation. By integrating the group's industrial chain and large-scale manufacturing advantages, MTC Display will continuously improve the cost-effectiveness of its LED all-in-one PC products and drive innovation and upgrading of COB in products and applications.
