Mini LED backlight for displays is rapidly gaining attention in the electronics market as major brands in consumer electronics such as Apple and Samsung plan to launch products featuring this technology. TrendForce forecasts that by 2024, the total value of the Mini and Micro LED market will reach US$3.9 billion and account for 18% of the total value of the entire global LED market. Hoping to capture new growth opportunities, many actors in the LED supply chain are now actively exploring applications related to Mini and Micro LED technologies.

Consumer Electronics Brands Are Shaping the Competitive Landscape of LED Companies

The major consumer electronics brands have made clear plans to launch devices featuring a display with Mini LED backlight in the near future. For the whole LED industry, the adoption of this display technology raises the prospect of a massive demand boom similar to the one triggered by the replacement of CFL with LED for display backlight. LED companies are doing what they can to establish themselves as providers of Mini LED solutions in the supply chains of electronic brands. Those LED manufacturers that are engaging in activities related to the development of Mini LED products include the major international suppliers (e.g., Nichia, OSRAM, and Seoul Semiconductor). Taiwan-based LED manufacturers such as Epistar, Lextar, and Everlight are formulating strategies for expanding into the Mini LED segment as well.

LED manufacturers in Mainland China certainly do not want to miss out on the immense opportunities. San’an Optoelectronics has not only formed a strategic alliance with Samsung to develop Mini LED products but is also sending out samples to Apple in hopes of inserting itself into Apple’s supply chain. HC Semitek is collaborating with Sharp and LG with the aim of supplying Mini LED chips for display backlight. Based on their recent activities, LED manufacturers in Mainland China are showing a strong desire to expand into the international market and compete for a share of the Mini LED segment.

Although the market for Mini LED solutions is very competitive with many entrants at this moment, there is the possibility that it may transform into an oligopoly once products enter mass production. After all, the LED industry was previously controlled by five companies (i.e., Nichia, CREE, OSRAM, Philips Lumileds, and Toyoda Gosei) that imposed their collective dominance by holding most of the key patents and arranging cross-licensing agreements with each other.

TrendForce therefore has invited companies across the LED supply chain to give their takes on current patent strategies and potential development trends in the Mini LED segment. Their insights will help provide a clearer understanding of the whole competitive landscape.

AT IP Management: Patent Market for Mini LED Is Poised for a Reshuffling

Henry Hsu, who is now the CEO of AT IP Management after working at ITRI and Foxconn, told TrendForce that many key patents on LED-related technologies are near or have already passed their expiration dates. Also, the five companies that previously dominated the industry through their control of IP rights can extend the legal power of only some of their patents into the Mini LED segment. On the other hand, many new technologies and their applications have emerged from the development of Mini LED backlight, and just as many new key patents will derive from them.

Hsu pointed out the LED market as a whole is still saturated with patents. Very few manufacturers can operate without obtaining technology licenses or making cross-licensing deals. Hence, the strategy for success continues to revolve around obtaining a sufficient number of patents on the fundamental technologies and entering cross-licensing agreements with competitors. Examples of fundamental technologies include those related to the uniformity of light emitted from LEDs, phosphor materials that increase purity of colors, micro-optical array, local dimming for display backlight, etc.

Hsu further asserted that concerns about patent infringement are just as serious in the Mini LED segment. What is different is the rising importance of certain technologies. Consequently, there is the likelihood that the patent market will go through a reshuffling. Besides the five major companies that hold most of the known key patents, Taiwan’s Epistar and South Korea’s Seoul Semiconductor have also amassed substantial IP rights and will therefore have a crucial position in the market for Mini LED solutions.