Q1 2025 LED Industry Overview: Accelerated Tech Iteration and Diverging Enterprise Resilience
In the first quarter of 2025, the global LED industry faced a mix of challenges—technological upgrades, market fragmentation, and external policy shocks—leading to a contrasting development trend. On one hand, Mini/Micro-LED technologies rapidly penetrated the market, AI deeply integrated into lighting applications, and emerging markets showed new growth potential.
On the other hand, intensified U.S. tariff policies, raw material price fluctuations, and widening gaps in corporate profitability fueled competition. Against this backdrop, Chinese LED enterprises demonstrated strong risk resilience through advanced technology and global expansion, while leading companies gained ground via diversified strategies.
Ⅰ. Industry Overview: Tech-Driven Growth Amid Rising External Pressures
Technology Iteration Reshapes Competitive Landscape
Mini-LED backlight technology has entered its 2.0 era, with RGB chip solutions—known for their wide color gamut and high energy efficiency—gradually replacing the traditional blue-light + phosphor scheme. As a result, market penetration has climbed to 26%.
In the direct-view display segment, COB and MiP have emerged as two core technologies: COB output is projected to exceed RMB 6 billion in 2025, while MiP is rapidly being adopted in high-end scenarios such as Hollywood film production and military command centers.
Meanwhile, Micro-LED is steadily maturing. Companies like Unilumin and Leyard have achieved small-batch production, advancing its use in consumer products like AR devices and smartwatches.
Tariff and Cost Pressures Test Business Resilience
The U.S. has imposed additional tariffs on Chinese LED products, which has temporarily impacted the export market. However, China's LED industry controls 70%-80% of global production capacity, coupled with advantages in the entire supply chain (materials, processes, and innovation), giving it long-term competitive strength.
International manufacturers such as Signify and Acuity Brands have been forced to raise prices, confirming the rule that "tariff costs are passed on to consumers." Additionally, the rise in raw material prices, such as copper and silver, has led mid-to-lower-tier companies to adjust their pricing by 5%-15%. Companies like MLS and Skyworth Commercial have raised prices to alleviate cost pressures.
Meanwhile, Micro-LED is steadily maturing. Companies like Unilumin and Leyard have achieved small-batch production, advancing its use in consumer products like AR devices and smartwatches.
Emerging Markets and Scenarios Release Incremental Growth
Overseas markets have become a key growth engine, with leading screen manufacturers seeing sales growth of 10%-20% in international markets, with Southeast Asia, Africa, and other emerging regions making significant contributions.
After breakthroughs in 2024, new scenarios such as LED integrated displays and cinema screens saw further expansion in Q1 of 2025, becoming structural growth drivers for the industry.
II. Company Performance: Leading Enterprises Take the Lead, Significant Profit Differentiation
Sanan Optoelectronics: High-end Products + Gold Revenue Drive Profitability
In Q1, Sanan Optoelectronics' non-GAAP net profit surged by 331.43% year-on-year, mainly driven by the revenue from waste materials due to the rise in gold prices and the increased proportion of high-end LED products. The company has further invested in the Micro-LED sector, with its 6-inch production line in Zhuhai now in operation, laying the foundation for long-term growth through technology reserves.
Wanrun Technology: Dual Drivers and Global Expansion
Wanrun Technology's annual report shows a 15.08% year-on-year revenue growth in 2024, with net profit increasing by 38.62%. The main drivers of this growth come from the dual-focus industrial development strategy. Specifically, the LED business, including light sources and related products, achieved a revenue of 433 million yuan, up 20.46% year-on-year.
LED lighting and related products generated 587 million yuan in revenue, marking a 35.20% increase. Additionally, the semiconductor memory business saw a remarkable 302.15% year-on-year growth, with revenue reaching 513 million yuan.
Leyard: Financial Optimization but Revenue Under Pressure
Leyard's Q1 revenue dropped by 7.59%, and net profit decreased by 24.37% year-on-year. However, the company managed to maintain stable cash flow by reducing financial expenses (down 718.55%) and optimizing accounts receivable management. Leyard also started production on its high-end MiP production line, targeting the high-end commercial display market, aligning its technological direction with industry trends.
Moulinson and HC SemiTek: Polarization Under Cost Pressure
Moulinson's Q1 net profit declined by 21.30%, with financial expenses surging by 1688.57%. However, the company increased its R&D investment by 2.91%, aiming to break through the bottlenecks in the mid-to-low-end market through technological innovation.
HC SemiTek's revenue grew by 27.82%, yet it still posted a net loss of RMB 97.63 million. Selling expenses surged by 65.12%, highlighting the company's struggle to balance market expansion with cost control.
III. Future Outlook: Balancing Technological Breakthroughs and Globalization
Intensifying Technological Competition
The three-pronged competition between SMD, COB, and MiP will continue. Cost-sensitive applications will predominantly rely on SMD, while the high-end market will be led by COB/MiP. If RGB Mini-LED backlight technology receives continued policy support, it is expected to further replace QD-OLED and become the standard for large-size displays.
Supply Chain Security and Acceleration of Domestic Production
The trend of domestic production for automotive LEDs is becoming more significant, with companies such as Hongli Zhihui and Jufei Optoelectronics entering the OEM supply chain. In the Micro-LED sector, China’s investments account for 70% of global funding, and technological breakthroughs may reshape the global industry landscape.
Risks and Opportunities Coexist
North American tariff policies, fluctuations in raw material prices, and corporate debt risks remain short-term concerns. In the long term, AI+IoT enabled smart lighting, humanoid robots, and other cross-industry applications may open new growth curves.
In Q1 2025, the LED industry demonstrated resilience amidst challenges, with technological iteration and global expansion becoming key drivers for companies to break through. Enterprises have shown strategic depth through a "technology + market" dual-drive approach, while the profit disparity highlights the need for further optimization of cost structures and technology conversion efficiency. Moving forward, whether companies can continue to lead in high-end technology breakthroughs and emerging market development will be a litmus test for their competitiveness in the global LED industry, as well as for China's position in the global market.
