TrendForce Jibang Consulting: The total output value of the global LED chip foreign sales market is expected to be US$2,841 million in 2025

The Zhitong Finance App learned that TrendForce Jibang Consulting estimates that in 2025, the total output value of the global LED chip foreign sales market will be US$2,841 billion, and that Zhaoyuan Optoelectronics ranked 9th. The LED chip business revenue mainly comes from lighting, backlighting, and mini LED display applications.

According to reports, TCL CSOT (TCL Huaxing) recently successfully competed for 80% of Zhaoyuan Optoelectronics's shares and related claims. TrendForce Jibang Consulting said that this acquisition marks TCL CSOT's official entry into the LED chip field, completing the supply chain layout from upstream chips to downstream mini LED display applications. Since 2018, many brands and panel manufacturers such as Samsung (Samsung), AUO (AUO), Hisense (Hisense), BOE (BOE), Innolux (Innolux), and HKC (Huike) have promoted similar mergers and acquisitions or investment cases to deepen the trend of vertical industrial integration.

TrendForce Jibang Consulting analyzed that brands and panel manufacturers are promoting vertical integration in the LED chip industry, significantly reducing the cost of collaboration between product application and chip supply. Through large-scale production and technology collaboration, it is expected to accelerate the development of Micro/Mini LED technology in the display and non-display markets, which in turn will drive the LED chip market output value to continue to grow.

This time, TCL CSOT acquired Zhaoyuan Optoelectronics for 490 million yuan (70 million US dollars). The merger and acquisition highlights the trend of integrating brands and panel manufacturers in the upstream LED chip field. In the past, after Samsung invested in Playnitride (PlayNitride), it launched micro LED TV products; AUO has invested in EnnoStar (Fucai) and Playnitride, respectively, and has achieved mass production of micro LED watches and micro LED vehicle communication displays. Hisense chose to take a stake in Qianzhao and later launched a TV with RGB Mini LED backlight technology.

After BOE held Huacan Optoelectronics, it launched a glass-based Mini LED display, while HKC achieved mass production of mini LED displays by itself in 2023. TCL CSOT's mini LED display production line in Suzhou was put into operation in 2025. At this stage, it has a monthly production capacity of 6,000 square meters. In the future, it is expected to use TeraYuan Optoelectronics to strengthen product competitiveness and win the competition between various brands and panel manufacturers.