MicroLED Displays Continue to Thrive, According to Yole

It was anticipated that OLED technology would continue its expansion in the smartphone sector, while microLED could potentially carve out a niche in smaller-sized displays before gradually scaling up as it achieved economies of scale.

Following Apple's decision to scale back its microLED efforts, some companies have followed suit, prompting a re-evaluation of strategies in the industry. However, other players are seizing the opportunity presented by reduced competition. Geographically aligned alliances are forming, with approximately thirty fabs or pilot lines still progressing, as reported by analysis firm Yole Group.

Despite the potential of microLED technology, significant advancements in die technology and transfer equipment are necessary to deliver a performance boost comparable to OLED at a competitive cost. To secure design wins in larger display formats like smartphones, the microLED sector must also establish a cohesive and comprehensive supply chain.

"The industry is now at a critical juncture, transitioning from proof-of-concept to mass production. The challenge lies in demonstrating the ability to produce high-performance, defect-free displays at scale, all while achieving the necessary economies of scale to ensure long-term viability," remarked Eric Virey, a display market analyst at Yole.

MicroLED's immediate growth trajectory is being driven by LEDoS microdisplays for augmented reality applications, with the resurgence of optimism fueled by advancements in artificial intelligence following the "AR winter" experienced between 2021 and 2023.

AUO has commenced supplying samples of microLED displays to prominent brands like Tag Heuer and Garmin, while Century Display is in the process of establishing a pilot line for microLED displays. Despite these developments, OLED technology continues to dominate in securing design wins for smartwatches, and without Apple's involvement, no single entity appears capable of propelling microLED into the realm of smartphones.

While OLED and miniLED currently overshadow microLED in the realm of television displays, there exists a potential avenue for microLED to make inroads in ultra-large screens exceeding 100 inches, according to insights from Yole. Additionally, opportunities for sales in automotive applications exist, although challenges such as high costs and an underdeveloped supply chain are impeding widespread adoption.

The recent closure of Osram's microLED fab and Apple's departure from the microLED space have presented a conundrum for the technology: a substantial volume is required to drive down costs, yet lower costs are essential to stimulate demand.

For more information, visit www.yolegroup.com.

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