As costs continue to decline, COB is accelerating its replacement of SMD, becoming the mainstream solution for small-pitch displays.

In the technological evolution and market competition of the LED small-pitch display industry, the shift in packaging methods is becoming the core theme of industry transformation. SMD (Surface Mount Device) packaging technology, which long dominated the market, is gradually reaching a dual bottleneck of technology and cost in the micro-pitch field below P1.2mm. Meanwhile, COB (Chip-on-Board) packaging, with its continuously maturing process, cost reduction due to large-scale production capacity, and comprehensive advantages in performance and reliability, is irreversibly accelerating its replacement of SMD, becoming the mainstream solution for small-pitch LED displays. From 2025 to 2026, as the price difference between COB and SMD continues to narrow and market penetration exceeds a critical point, the LED small-pitch market will officially enter a new pattern of "COB dominance and SMD retreat."

I. The Cost Inflection Point Has Arrived: COB Prices Decline, Substitution Barriers Are Completely Broken

For a long time, "high price" has been the core obstacle restricting the popularization of COB. However, after several years of technological iteration and industry chain upgrades, this situation fundamentally reversed in 2025, with cost reduction becoming the strongest driving force for COB to replace SMD.

1. Price Plunge, Price Difference Narrowed to a Reasonable Range

From 2023 to 2025, the average price of COB products cumulatively decreased by over 37%. In the first quarter of 2025, the average price of small-pitch COB displays plummeted by 31.4% year-on-year, falling to 17,200 yuan/㎡; by the second half of 2025, the price of mainstream P1.25 pitch COB products further dropped to 9,800 yuan/㎡, historically falling below the 10,000 yuan mark. Compared to SMD products with the same pitch, the COB premium rapidly narrowed from 80%-100% in the early days to 15%-25%. Taking mainstream small-pitch LED products (P1.0-P1.5) as an example:

SMD solution: Priced at approximately 6000-8000 RMB/㎡, but due to packaging structure limitations, stability is poor, yield is low, and maintenance costs are high below P1.2.

COB solution: Priced at approximately 8000-12000 RMB/㎡, it excels in display effect, protection capability, and lifespan, achieving a superior overall cost-performance ratio compared to SMD.

2. Core drivers of cost reduction: Economies of scale + process simplification + mature industry chain

The rapid decline in COB costs stems from the convergence of three core factors:

Large-scale capacity release: In 2025, global monthly COB packaging capacity exceeded 90K㎡ (converted to P1.2), a year-on-year surge of 66.7%. Upstream Mini LED chip yield exceeded 95%, and prices continued to decline; the localization rate of midstream packaging equipment increased, with key equipment such as mass transfer, die bonding, and testing doubling in efficiency and reducing costs by more than 40%. Economies of scale significantly reduce marginal costs for R&D, equipment, and materials.

Production processes are greatly simplified: COB eliminates multiple steps in SMD's "single chip packaging - surface mounting - screen assembly," streamlining the production process by over 40%. The elimination of independent brackets and reduced wire bonding steps lowers material costs by 20%-30%; simultaneously, reduced manual intervention increases production yield from 75% to over 91%, and unit capacity increases by over 50%.

End-to-end cost optimization: From chips, substrates, and encapsulating adhesives to driver ICs and calibration systems, all links in the COB industry chain collaboratively reduce costs. Lower prices for ceramic substrates and high thermal conductivity aluminum substrates, new packaging materials achieving a balance between high protection and low cost, and driver ICs adapted to COB integrated design further reduce system costs.

II. A Driving Technological Leap: COB Completely Surpasses SMD, Solving the Pain Points of Small-Pitch Displays

Lower costs open the market door, while the absolute advantage in technological performance makes COB the optimal solution for small-pitch displays. Compared to SMD, COB surpasses it in all aspects, from display effect and reliability to heat dissipation and scene adaptability, precisely addressing the inherent shortcomings of SMD in the small-pitch field.

1. Micro-pitch Breakthrough: Breaking the Physical Limits of SMD, Unlocking Ultra-High-Definition Display

SMD is limited by the individual LED chip packaging bracket and the gap between the chips. P1.2mm is already the physical limit, and pitches below P1.0 are prone to problems such as the "caterpillar effect," uneven pixels, and obvious seams. COB, on the other hand, directly bonds the RGB chip to the substrate, eliminating the need for independent brackets and chip gaps, easily achieving an ultra-micro pitch of P0.6-P0.9mm, with a pixel density more than 3 times higher than SMD of the same specifications. In 8K ultra-high-definition, close-range viewing scenarios (command centers, conference rooms, XR virtual shooting), COB images are free of graininess and moiré patterns, with natural color transitions, and the display effect is almost indistinguishable from LCD panels, completely filling the technological gap in the ultra-micro-pitch market left by SMD.

2. High-Reliability Protection: Adaptable to Complex Scenarios, Significantly Reducing Maintenance Costs

SMD LEDs and solder joints are exposed, with a protection level of only IP20-IP30. They are susceptible to dust, moisture, and impacts, leading to issues such as LED loss, dead LEDs, and color distortion, with an annual failure rate of 5%-8%. COB uses full-board potting/film encapsulation, achieving a protection level of IP54-IP65, significantly improving dustproof, waterproof, corrosion-resistant, and impact-resistant capabilities. Data shows that COB displays have an average mean time between failures (MTBF) exceeding 100,000 hours, an annual failure rate below 0.01%, and a lifespan more than 50% longer than SMD. In demanding scenarios such as command centers, rail transit, industrial control, and outdoor commercial displays, COB can operate stably for 5-8 years without large-scale maintenance, reducing total lifespan maintenance costs by 60%-70% compared to SMD.

3. High-Efficiency Heat Dissipation and Low Power Consumption: Suppressing Light Decay and Adapting to Long-Term High-Load Operation

SMD LEDs have long heat dissipation paths and high thermal resistance (8-12K/W). Long-term high-brightness operation easily leads to heat accumulation, resulting in rapid light decay, color temperature differences, and color drift. COB chips are directly bonded to high thermal conductivity substrates (aluminum nitride ceramic, metal core PCB), significantly shortening the heat dissipation path and reducing system thermal resistance to below 4.8K/W, improving heat dissipation efficiency by 60%. Simultaneously, COB's integrated design reduces circuit losses, lowering power consumption by 15%-20% compared to SMD with the same pitch. This suppresses light decay, ensures long-term color stability, aligns with green energy-saving trends, and reduces long-term operating costs.

III. Market Restructuring: COB Penetration Soars, Dominating the Mainstream Small-Pitch Market

The combined advantages of technology and cost are driving the rapid increase in COB penetration in the small-pitch market, making 2025 a "watershed" year for the market landscape.

1. Penetration Rate Breaks Through the Critical Point, Sales Revenue Surpasses SMD for the First Time

In 2025, in the Chinese mainland small-pitch LED display market, the sales revenue share of COB packaged products exceeded 50% for the first time, reaching 52.1%, a surge of 31 percentage points year-on-year; while the sales revenue share of SMD (including IMD) declined sharply to 35.7%. In terms of shipment area, COB accounted for 23.6%, and even reached 32% in the Chinese market, with its growth rate continuing to lead the pack—in 2025, COB shipment area increased by 49.1% year-on-year, far exceeding SMD's 5%-8%. Classified by pitch range:

* **Ultra-fine pitch below P1.2mm:** COB penetration exceeds 85%, becoming the absolute mainstream, while SMD has essentially exited this field.

* **Mainstream small pitch (P1.25-P1.5mm):** COB penetration reaches 60%-70%, rapidly replacing SMD as the preferred choice.

* **Medium pitch (P1.5-P2.0mm):** COB, with its cost-effectiveness advantage, has achieved a penetration rate exceeding 30%, continuously squeezing the SMD market.

2. Comprehensive Application Penetration, From High-End to Mass Market

COB is rapidly expanding from high-end scenarios such as command centers, broadcast studios, and high-end conferences to mass market applications including smart education, commercial complexes, corporate offices, and home theaters:

Commercial Displays: COB penetration rates in command centers, monitoring rooms, and high-end conferences exceed 40%; in educational all-in-one machines and large commercial displays, COB has become the standard for pitches below P1.5.

Outdoor Displays: High-protection COB is rapidly capturing the outdoor advertising, sports stadiums, and municipal large-screen markets, with outdoor COB growth exceeding 30% in 2025-2026.

Consumer Electronics: Mini COB backlighting has become the mainstream solution for high-end TVs and automotive displays, with global shipments of Mini COB backlight products expected to exceed 8 million units in 2026.

IV. Trend Outlook: Deepening Substitution, COB Becomes the Long-Term Mainstream for Small-Pitch Modules

In 2026 and beyond, the substitution of SMD by COB will continue to deepen, with three clear trends emerging in the industry:

Further Cost Reduction and Narrowing Price Difference: With continued capacity expansion and technological iteration, the average price of COB is expected to decrease by another 20%-25% in 2026-2027, narrowing the price difference with SMD to less than 10%, completely eliminating substitution price barriers;

Clear Technological Layering and Coexistence of Differentiated Competition: COB dominates the small-pitch and micro-pitch market below P1.5mm; SMD retreats to the medium-to-large pitch and low-cost general-purpose market above P2.0mm, forming a differentiated pattern of "COB as the main player and SMD as a supplement";

Universal Adoption and Unified Industry Standards: The standardization and lightweighting of COB modules are advancing, moving from engineering customization to channel distribution. Simultaneously, industry technical standards are gradually improving, driving the large-scale application of COB in more scenarios.

Conclusion

The continued decline in costs and the full maturity of the technology have enabled COB to transform from a "high-end niche" to a "mainstream" product, making its replacement of SMD in the small-pitch LED display market a foregone conclusion. This is not only an iteration of packaging technology, but also a core indicator of the LED display industry's upgrade towards ultra-high definition, high reliability, low cost, and all-scenario applications. For the industry, accelerating the deployment of COB technology, optimizing production capacity and costs, and expanding application boundaries are key to seizing future market share; for end users, the widespread adoption of COB will enable high-definition, stable, and energy-efficient display solutions to be implemented more quickly, propelling the LED display industry into a new stage of high-quality development.