TCL: Market of Mini LED-Backlit TVs Will Become Relatively Steady in 2022 or 2023

In 1H21, TCL Technology (hereinafter “TCL”) generated an operating revenue of RMB 115.24 billion (USD 17.7 billion; +89% YoY) and net profit of RMB 10.72 billion (USD 1.654 billion; +460% YoY).

In the semiconductor display sector, specifically, TCL focuses on the research and development of emerging technologies including printed OLED/QLED, Mini LED, and Micro LED, aiming to get a head start on other competitors.

Recently, TCL has offered its insights into the semiconductor display business in the first half of 2021 when receiving an interview from a research institute.

Mini LED Will Be an Extremely Crucial TV Display Solution

Concerning Mini LED TVs, TCL maintains that the quantity and share of Mini LED products have been increasing with enormous market potential; the Mini LED market is expected to become steady next year or the year after next. In addition to TVs, Mini LEDs are likely to be used in mid-size products such as tablets, lithium batteries, displays, and vehicle mounted screens.

TCL elucidated that demand for Mini LEDs has constantly increased and expanded, which is conducive to reduced supply chain costs. Mini LED products will reach a relatively good balance between competitiveness and performance, which, as TCL claimed, will have increasingly higher share in mid-size products.

When mentioning the competition between Mini LED and OLED, TCL specified that Mini LED outperforms OLED because its backlighting technology can largely enhance contrast, gamut, and display performance. Moreover, Mini LED can somewhat overcome OLED’s brightness, imaging, and lifespan problems. It also features much better stability and reliability.

Mini LED backlighting also facilitates upgrades of LCDs, which already outperform OLED displays in cost and efficiency. From the perspective of overall competitiveness, Mini LED will become an exceptionally crucial display solution for TVs.


Image source: PAIXIN.COM

TCL’s OLED Shipments in 1H21 Has Surpassed those in 2020

Concerning the OLED business, TCL’s OLED shipments in the first half of 2021 have already exceeded those of last year, boosting the company’s market share to 4th place worldwide. TCL has also made impressive progress in high-end products, with soaring shipments of its foldable displays provided for leading companies.

TCL indicated that demand for OLEDs in smartphones has continued to rise, including OLEDs in high-end products, under-screen camera technologies, foldable screen technologies, and other novel technologies. The improvements in these technologies and products, along with the continuously rising market demand, improving product yield rates, and declining supply chain costs, will enable OLED suppliers to begin gaining profits.

Production Capacity Will Be Expanded through M&A and New Investments

TCL specified that the company will expand its production capacity through internal potential development, M&A, and new investments because of the following three reasons.

First, TCL has made the existing production capacity available and optimized production line structures to facilitate capacity increases. Second, TCL acquired Samsung’s Suzhou plant this year with expanded t7 production capacity. From 1H21 to 2H22, production capacity will gradually be available for the company’s t7 series. Third, the t9 plant in Guangzhou has been put into use, which can help enhance the company’s production capacity.

TCL added that thanks to adjustments and optimization of its product mix, the company’s revenue growth exceeds capacity growth. On one hand, the share of mid-size IT products—including high-end commercial displays and professional displays—will increase to a certain extent. On the other hand, as the company’s product mix is transforming from a homogenous combination to a module-based one, the added value of its products has been surging. (Compiled by Mia from LEDinside)
 

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