Samsung Electronics has disclosed its financial results for 2Q23, reporting quarterly revenue of 60.01 trillion Korean won. Although the DS division saw a rebound in revenue, the fall in smartphone shipments led to a 22% YoY decline.

Samsung highlighted an upturn in its memory business in Q2 due to a concentrated focus on HBM and DDR5 products. The company anticipates strong demand in AI applications, which has helped their DRAM shipments surpass expectations. In terms of panel production, earnings from smartphone panels paralleled those of the first quarter, largely owing to the sales of high-end panels. Meanwhile, the production of large panels continues to target the high-end QD-OLED market.

On the foundry side, Samsung reported a quarterly revenue increase during the second quarter, which was bolstered by growing sales to certain American clients. Yet, fab expansion and uncertainty in short-term demand contributed to a reduction in the utilization rate, triggering a substantial decrease in operating profit. The smartphone division experienced a drop in market demand, influenced by macroeconomic conditions such as high interest rates and inflation.

TrendForce reports that Samsung projects a rebound in global demand during 2H23, which could boost their earnings. Although potential macroeconomic risks are on the horizon, they aim to sustain profitability through sales of high-value products and the launch of innovative new products. However, considering the uncertainties for demand, TrendForce cautions that recovery in demand is expected to be gradual, with commodities prices only improving if suppliers maintain ongoing production cuts.

(Photo credit: Samsung)

As the mass production of the new iPhone draws near, TrendForce, in April this year, raised concerns in the smartphone industry about several design changes made to the 2023 iPhone models almost half a year ahead of production. The industry is closely monitoring whether related components can keep up with the production schedule to ensure smooth execution of subsequent assembly plans. Recently, TrendForce provided updates on the production progress and details of these components.

According to TrendForce’s investigation, two critical components in the iPhone supply chain are causing worries about potential supply issues – the CIS (CMOS Image Sensor) and the titanium alloy frame. Currently, there are still bottlenecks in the production of these components that need to be overcome.

Regarding the CIS, the bottleneck arises from Sony’s supply of the new 48MP CIS, which is expected to be used in iPhone 15 and iPhone 15 Plus. This CIS adopts a new stacked design, separating the CIS photodiodes and peripheral transistors into three layers instead of the previous double-layer structure. This poses a significant challenge to yield rates, and despite Sony’s efforts to increase production capacity to cope with the yield ramp-up difficulties, the supply situation does not meet anticipated levels, affecting the initial production schedule of the entire device.

As for the titanium frame, due to the elimination of the pressure-sensitive button structure and the slight adjustment in the opening for the mute switch, the suppliers need to re-allocate, set up, and verify the basic operating time of the production lines.

Additionally, the processing procedures for titanium are more complicated compared to stainless steel, which leads to longer production lead times. TrendForce confirmed recently that the titanium frame for the new iPhone is currently one of the components with lower yield rates and supply stability. Therefore, suppliers have expanded production capacity by 20-30% and are working diligently to ensure that even if the initial supply is tight during the early stages of production, they can respond accordingly, ensuring that the launch and supply of the entire device will not be affected.

Given the supply constraints of these two components mentioned above, TrendForce believes that Apple may increase the production proportion of the two Pro models in 3Q23 to fill the gap caused by the initial iPhone 15’s production capacity shortage. This adjustment, in an optimistic scenario, will only involve shifting production proportions between different models in two quarters, with no impact on the annual shipment performance. TrendForce assesses that this possibility is more likely under the current circumstances.

However, if the CIS yield bottleneck is difficult to overcome, it could lead to a substantial reduction in the shipment volume of the 2023 iPhone models. TrendForce will continue to monitor the situation closely.

According to research conducted by TrendForce, the much-anticipated Micro LED version of the Apple Watch is facing yet another delay and is now expected to be launched in the first quarter of 2026. The primary reason behind this delay is believed to be the need for reconfiguring the production supply chain.

Previously, industry speculations suggested that Apple would take charge of the core production process, particularly the massive transfer of Micro LED technology. However, recent industry research by TrendForce indicate that LG Display (LGD) might now take over this crucial aspect of the production process.

The critical process involved in the production of the Micro LED version of the Apple Watch, especially the massive transfer of Micro LED technology, has been a point of interest in the industry. It was widely speculated that Apple would handle this key engineering either at its Cupertino headquarters in the United States or potentially transfer the production to its facility in Longtan, Taiwan, for the essential massive transfer of the technology.

TrendForce understands that Apple’s decision to undertake the crucial engineering process in either the United States or Taiwan reflects their intent to have complete control over the core manufacturing process during the initial production phase. However, this approach also introduces complexities in terms of logistics and supply chain management, as the chips are set to be manufactured in Malaysia, the backplates in South Korea, and the final assembly by system integrators in China or Vietnam.

As a result, recent industry research by TrendForce indicate that Apple has finalized LGD as its primary collaborator for Micro LED production. This means that LGD will now be responsible for the critical massive transfer process. In addition to providing its own equipment and technical support, Apple is also expected to invest in LGD’s related equipment procurement to ensure a smooth transition and expedited progress in the Micro LED production pipeline.

For more information and details about the Micro LED industry, TrendForce will hold the “2023 LED Forum” on September 5th (Tuesday) from 9:30 am to 5:00 pm at the NTUH International Convention Center. The seminar has invited TrendForce’s Senior Research Vice President, Eric Chiou, as well as representatives from various industries such as Mojo Vision, ITRI, Lumus, Unikorn, Porotech, Nitride Semiconductor, Tohoku University, Coherent, InZiv, AUO, and Tianma to share the progress and related applications of Micro LED technology.

TrendForce reported that TV panel purchases are gaining momentum in the early July, with both Chinese and other major brand customers increasing their orders in preparation for the busy promotional season in the second half of the year. Overall, the purchasing momentum is expected to grow by 7-8% in the quarter. The demand-driven growth, coupled with balanced supply and demand, is likely to sustain the upward trend in TV panel prices. For July, prices are projected to rise by $2 for 32-inch panels, $3 for 43-inch panels, $6 for 50-inch and 55-inch panels, $7 for 65-inch panels, and $8 for 75-inch panels.

Meanwhile, MNT panel prices have experienced slight increases, but the market demand for commercial models remains weak compared to consumer models. Consequently, the price hikes are expected to be modest, and various panel manufacturers are implementing different pricing strategies for different customers and sizes. For July, MNT panel Open Cell prices are expected to rise by approximately $0.2 to $0.5, while 21.5-inch module prices will increase by $0.2 and 23.8-inch module prices by $0.1. Prices for 27-inch modules will remain stable.

As for NB panel prices, after a stable period, panel manufacturers are contemplating raising prices in the third quarter. However, brand customers remain cautious about the demand for the second half of the year, resulting in ongoing negotiations with panel manufacturers. The demand for lower-end TN models is stronger than for higher-end IPS models, leading brand customers to tend to accept slight increases in TN panel prices. For July, mainstream sizes like 14-inch and 15.6-inch TN models are expected to see a minor increase of $0.1, while prices for IPS models will remain stable.

With the release of Apple’s Vision Pro, its Micro OLED display technology has caught the attention of more people. In fact, global Micro OLED display manufacturers have been working in this field for many years. In recent years, Chinese manufacturers have been particularly active in this area. TrendForce has compiled the recent global manufacturers’ product and technological advancements in this article.

eMagin

Founded in 1996 and headquartered in New York, eMagin Corporation is a leading enterprise in Micro OLED display technology, serving world-class clients in the military, consumer, medical, and industrial markets. Since 2001, eMagin’s micro-displays have been used in AR/VR, aircraft cockpits, heads-up display systems, thermal imagers, night vision goggles, future weapon systems, and various other applications. In May 2023, eMagin announced its final merger agreement with Samsung Display, with Samsung acquiring eMagin for $218 million.

Sony

Sony began developing the foundational display technology for Micro OLED in 2009, with the aim of applying it to electronic viewfinders for cameras.

In June 2023, Apple released the Vision Pro, featuring two Sony Micro OLED displays with a size of 1.42 inches, a resolution of 3648×3144, a pixel density of 3391ppi, and a module brightness of up to 6000 nits. It has been reported that this high-spec Micro OLED screen is also priced high, with a single screen costing $350, and its production capacity is limited.

MICROOLED

MICROOLED was founded in 2007 and is headquartered in Grenoble, France. The company is dedicated to the development and manufacturing of high-resolution Micro OLED micro-displays. In January 2012, MICROOLED introduced its first 0.61-inch micro-display with 5.4 million pixels. In August 2012, STMicroelectronics invested 6 million euros in MICROOLED, and the two companies initiated collaborative development work. In 2015, MICROOLED announced that it had sold over 150,000 0.38-inch WVGA micro-displays. In 2020, MICROOLED announced a funding of 8 million euros to accelerate the development of consumer-grade AR solutions.

Kopin

Kopin Corporation was founded in 1984 and is headquartered in Westborough, Massachusetts. Since 1990, the company has been providing LCD, LCoS, and OLED micro-displays for military, enterprise, industrial, medical, and consumer wearable products. In March 2023, Kopin announced significant progress in the Helmet-Mounted Display System (HMDS) project for the F-35 fighter jet, completing performance tests for OLED micro-displays.

Kopin has also been involved in the establishment of Chinese Micro OLED manufacturers, such as Kunming O-Film (now renamed “Yunnan Visionox Opto-Electronic Technology Co., Ltd.”) and Lakefield Optoelectronics.

BOE

In August 2017, BOE announced a joint investment of 1.15 billion RMB to establish Kunming BOE Display Technology Co., Ltd. (now renamed “Yunnan Invensight Optoelectronics Technology”). The company is engaged in the production, sales, and research and development of OLED micro-displays.

BOE announced further investment of 3.4 billion RMB for the construction of a 12-inch OLED micro-display production line to meet the demand of the high-end AR/VR market in December 2019. The designed capacity is 10k wafers per month, with main products including 0.99-inch and 1.31-inch OLED micro-displays.

In March 2021, BOE disclosed on the investor interaction platform that the 8-inch silicon-based Micro OLED production line of Yunnan Invensight Optoelectronics Technology had achieved mass production in August 2019 and is currently ramping up production. The newly established 12-inch Micro OLED production line will be completed in three phases and is expected to be fully completed in January 2024, with a designed annual capacity of 5.23 million wafers.

In May 2023, BOE unveiled its 1.3-inch 4K (3552×3840) Micro OLED display at SID Display Week.

Seeya Technology

Seeya Technology was founded in October 2016 and focuses on the research and production of 12-inch silicon-based OLED micro-display. In 2022, DJI released the Goggles 2, the world’s first consumer-grade FPV goggles utilizing Micro OLED screens, which features Seeya’s 0.49-inch 1920×1080 Micro OLED micro-display.

Lakeside Optoelectronics

Lakeside Optoelectronics was established in April 2017. In May 2023, Lakeside Optoelectronics announced a partnership with Panasonic. Prior to this, Lakeside Optoelectronics had established long-term strategic partnerships with Panasonic and US-based Lighting Silicon Corporation. Panasonic’s next-generation smart VR glasses, MeganeX, will incorporate Lakeside Optoelectronics’ third-generation Micro OLED display. The product is expected to be launched in 2023.

Samsung Display

In early 2022, Samsung Display announced that it was developing Micro OLED displays, with the project in its early development stage. The company planned to start building its first production line in 2023, begin mass production of Micro OLED displays in 2024, and expand capacity in 2025 for full commercialization by 2026.

In December 2022, South Korean media reported that Samsung had started ordering equipment for a 300mm pilot production line, with SFA Engineering and AP Systems as the equipment suppliers. The production line will be located in Samsung’s A2 factory in Asan, South Korea. Samsung aims to receive the first equipment in the first quarter of 2023 and start volume production by the end of 2023, with a monthly capacity of 6,400 wafers. The production line is expected to be fully operational in 2024.

In May 2023, eMagin announced the final merger agreement with Samsung Display. Samsung Display will acquire eMagin for a price of $218 million.

LG Display

In February 2023, it was reported by South Korean media that Meta would collaborate with SK Hynix and LG Display to develop Micro OLEDs for AR/VR headsets. Meta would primarily handle semiconductor design, SK Hynix would be responsible for wafer production, and LG Display would complete the OLED deposition on wafers and perform the final step of cutting them into Micro OLED panels.

It was mentioned that SK Hynix’s Icheon headquarters in Gyeonggi Province has three DRAM production lines: M10, M14, and M16. The production line designated for Micro OLED wafer production is the M10 line, which uses 12-inch wafers as the standard and has a monthly production capacity of 100,000 wafers. If product development proceeds smoothly, they plan to start producing 30,000 wafers per month from 2025-2026. Additionally, the team is expected to utilize 28nm or 45nm nodes for Micro OLED wafer production.

Epson

Epson has been conducting research on OLED-related technologies for nearly 20 years and has released several smart glasses equipped with Epson Micro OLEDs. Epson’s VM-40 AR optical module features a 0.453-inch 1920 x 1080 Micro OLED display.

(Photo credit: Apple)