Global demand for LED chips used in fine pixel pitch displays in 2017 will increase 30-40% on year, according to industry sources in Taiwan.

The growth is due to increasing demand for such displays and increasing density of LED chips per unit of display area arising from decreasing pixel pitches, the sources said.

MLS, the largest China-based LED packaging service provider, estimates that global demand for LED chips used in fine pixel pitch displays will increase from 60 billion chips in 2016 to 90-100 billion units in 2017.

In view of the growing demand, MLS will expand its annual packaging capacity to 100-150 billion LED chips in 2017 and 60-70% of the additional capacity will be for fine pixel pitch displays. MLS aims to hike its global market share for fine pixel pitch LED displays from 50% in 2016 to over 60% in 2017.

China-based LED packaging service providers Foshan Nationstar Optoelectronics and Shenzhen Kinglight will also expand production capacity mainly for fine pixel pitch LED displays.

Taiwan-based LED packaging service provider Everlight Electronics has started production at a new factory in central Taiwan focusing on fine pixel pitch LED displays, LED automotive lighting and infrared LED products.