[News] Chinese Equipment Makers Accelerate Entry into the Micro LED Sector

In recent years, as the Chinese government strongly promotes domestic production, the localization rate of equipment in sectors such as semiconductors, precision electronic components, and new energy lithium batteries has steadily increased. Domestic equipment is gradually replacing imports, reducing dependency on external supply chains and safeguarding against potential critical equipment bottlenecks.

In the Micro LED field, Chinese equipment manufacturers are also actively advancing the research and production of key Micro LED equipment. This year, Chinese Micro LED equipment has achieved a series of breakthroughs, with multiple companies beginning to ship equipment to downstream clients.

Alphabetter Ships Micro LED Equipment to Taiwanese Client

On November 5, Alphabetter announced that its self-developed Micro LED wafer-level PL mass inspection device, the a-M1070, was officially shipped to Taiwan, marking the first equipment delivery for a Taiwanese client. Alphabetter stated that after the mass production of the a-M1070 product line, equipment shipments have largely covered major clients in the Micro LED industry within mainland China, fully realizing domestic substitution for this type of equipment.

The shipped a-M1070 mass inspection device uses photoluminescence testing technology, enabling non-contact, non-destructive, and ultra-fast luminescence performance testing. It can measure the brightness and spectral information of tens of millions of micro-LED chips on a COW (chip on wafer) or COC (chip on carrier) wafer within minutes, with a minimum validated chip size of 3μm x 3μm.

Continued Advancements in Micro LED Technology Provide Growth Opportunities for Chinese Equipment Manufacturers

It’s worth noting that Chinese equipment manufacturers have achieved several milestones in the Micro LED field this year. In addition to Alphabetter, companies such as Seichitech, JT Automation Equipment, Delphilaser, AMEC, SINEVA, and HSET have made notable progress in Micro LED testing, packaging, mass transfer, peeling, repair, and epitaxial growth equipment development.

Looking forward to the development of Micro LED technology, the LED industry continues to expand its Micro LED technology layout, with growth momentum largely unaffected by major tech companies such as Apple.

On the contrary, as downstream manufacturers accelerate Micro LED research and production, demand for related equipment continues to grow, representing a significant potential development opportunity for Chinese equipment suppliers.

Recently, the well-known MOCVD equipment manufacturer Aixtron indicated that it had received orders from clients establishing Micro LED research and pilot production lines, with several clients considering increasing Micro LED production by 2027 or 2028. Aixtron expects its Micro LED revenue to reach tens of millions of euros in its 2024 fiscal year, with a positive outlook for Micro LED business growth in the future.

Eric Chiou, Senior Research Vice President at TrendForce, also noted that while Apple has canceled its plans to mass-produce a Micro LED version of the Apple Watch by 2026, the industry continue to drive Micro LED technology development through acquisitions, joint ventures, and partnerships, with no apparent change in the commitment and trend toward developing Micro LED.

TrendForce projects that the global Micro LED chip market will reach approximately USD 62 million in 2024, with most demand stemming from large displays. As Micro LED technology advances into automotive display and near-eye display application markets, the global Micro LED chip market value is expected to reach nearly USD 600 million by 2028.

This estimate only reflects the chip segment of the Micro LED market. With the addition of the transfer, inspection equipment, and backplane segments in the Micro LED industry chain, the industry’s total market value will significantly exceed USD 600 million.

(Photo credit: Alphabetter)