Apple has unveiled its long-awaited MR device, “Vision Pro,” which provides a clearer perspective on the potential and applications of AR devices. Despite not being as bulky as VR devices, Vision Pro still has a way to go before reaching the ideal form of AR glasses.

Apple’s Vision Pro utilizes Micro OLED technology and can display facial expressions on the outer screen. The industry anticipates that as AR technology evolves, a transition from Micro OLED to the equally next-gen Micro LED could make AR devices lightweight and more like glasses.

However, the question remains: what advantages does Micro LED bring to AR technology? Why did Apple opt for Micro OLED initially? And are there other display technologies suitable for AR applications?

AR devices: Striking a Balance between Ideal and Reality

In reality, achieving the truly ideal AR product might be premature given current technology. Most AR functional products strictly employ video see-through (VST) technology, where cameras capture real-world scenes, and computational and computer graphic techniques combine to display them on opaque screens.

The ideal is optical see-through (OST) technology, where users perceive the real world through a semi-transparent optical combiner in front of their eyes, coupled with projections onto the user’s eyes, merging the real and virtual worlds.

TrendForce discloses that ideal see-through smart glasses must meet three criteria: firstly, the display light engine must be compact, around 1 inch or smaller, to minimize the glasses’ wearing burden. Secondly, in terms of content recognition requirements, the display brightness specifications should reach at least 4,000 nits to ensure resistance to external factors like weather and environment. Lastly, the resolution must be at least 3,000 PPI for clear projected images.

Industry experts note that see-through AR glasses’ main scenarios are outdoors and on the move. These scenarios require consideration of outdoor weather and brightness, particularly as current waveguide lens efficiency is low, around 0.1-1%, causing substantial light loss. Generally, AR display brightness must exceed 1 million, even 10 million nits.

AR Glasses Development: Which Display Technology Holds the Edge?

Mainstream display technologies for AR glasses include PM(Passive Matrix) micro-display technology, AM(Active Matrix) micro-display technology, and scanning display technology.

PM micro-display technology encompasses LCD, LCOS (Liquid Crystal on Silicon), and DLP (Digital Light Processing) technologies, requiring RGB LED or RGB laser light sources. While mature, they tend to have larger light engines compared to other technologies.

AM micro-display technology includes Micro OLED and Micro LED. Micro OLED features self-emission properties but struggles with brightness. Micro LED outperforms Micro OLED in contrast, lifespan, and power efficiency, but integrating RGB remains challenging.

Scanning display technology (LBS) employs RGB lasers and MEMS for scanning imaging but might lead to speckle.

Analysis of Micro OLED, Micro LED, LCOS, and LBS Technologies

• Micro OLED: Suited for VR/MR devices, but brightness is a limitation

Apple’s Vision Pro uses Micro OLED technology, but its organic light-emitting characteristics result in lower brightness compared to Micro LED, LBS, LCOS, and DLP.

Despite efforts to enhance brightness through different layers, pattern adjustments, and phosphorescent materials, increasing brightness shortens organic material lifespan. Sony remains a key Micro OLED provider, but but recent reports indicate that LGD (LG Display) has joined Apple’s Vision Pro Micro OLED supply chain, potentially boosting production and reducing costs.

• Micro LED: Strongest contender for AR applications but faces technological challenges

Micro LED excels in PPI, brightness, contrast, and light engine size. However, its technological maturity is a major concern. Micro LED AR glasses predominantly display monochrome images due to colorization barriers. Achieving high resolution requires chip scaling, with Micro LED sizes shrinking to 5um. Challenges include uniform wavelength distribution and external quantum efficiency for red LEDs.

• LCOS: Mature but high power consumption and low contrast limit development

LCOS is a common AR device display technology with low cost and broad color gamut. Its reflective nature achieves high brightness, up to 40% light utilization, and increased resolution as semiconductor processes refine. However, it suffers from low contrast and requires a polarizing beam splitter (PBS), hindering downsizing.

• LBS: Small light engine rivaling Micro LED, but technology remains nascent

LBS employs RGB lasers as light sources, via optical element calibration and MEMS image scanning. Light then couples into waveguides. LBS offers high brightness, low power consumption, pure color, and high contrast. However, laser-induced speckle is possible. Ams OSRAM developed an RGB integrated laser with MEMS, shrinking the light engine to under 1cc.

Key Hurdle in AR Glasses Technology: Light Engine Size

Light engine size is pivotal for lightweight AR glasses. To achieve a near-normal glasses form factor, the light engine must be around 1cc or smaller, becoming an industry consensus.

For full-color light engines to reach this target, only LBS, Micro OLED, and Micro LED have opportunities. Micro LED’s pixel size, light efficiency, and brightness outperform Micro OLED, making it the preferred choice for light engines.

However, TrendForce states that while Micro LED’s technology maturity is evolving, challenges remain with red LED external quantum efficiency, micro display size, and FOV issues. Additionally, long-term wear and sensor integration for data transmission and processing pose further challenges.

(Photo credit: Apple)

When Apple unveiled its inaugural wearable device, the Vision Pro, in June this year, CEO Tim Cook remarked, “Apple Vision Pro introduces us to spatial computing.”

The era of spatial computing entails redefining how users interact with digital content within the context of the real world. Apple’s ambition extends beyond mere immersive entertainment, aiming to seamlessly integrate personal computers and smartphones into everyday life and work scenarios, replicating the success it achieved in personal and mobile computing.

The launch of the Vision Pro has once again thrust new display technologies into the industry spotlight. Although the Vision Pro employs Micro OLED, the potential to achieve a portable, outdoor-capable mixed-reality headset rests on Micro LED, seen as the most promising option.

“Micro LED demonstrates balanced performance beyond average levels in terms of brightness, energy consumption, pixel density (Pixel per Inch, PPI), and optical module size,” noted Eric Chiou, Senior Research Vice President at TrendForce. He further emphasized Micro LED’s potential in the development of AR devices, stating, “This also explains why Meta, Google, and MIT are continuously evaluating and assisting in the development of Micro LED technology.”

The application potential of Micro LED in AR devices is evident from the number of companies investing in its development.

In the first half of 2023 alone, six companies—Raysolve, Porotech, Sitan, Kopin, GoerOptics, JBD—announced progress in the development of Micro LED micro-display products. Additionally, two AR glasses manufacturers, Rayneo Innovation and Nubia, unveiled products featuring Micro LED chips.

Certainly, Micro LED’s implementation is not confined to AR eyewear; it is making inroads into the realm of wearables, particularly in the form of smartwatches. Soon, consumers will find the first commercially available watch featuring a Micro LED screen on the market. Tag Heuer, a luxury watch brand, is leading the way with support from AU Optronics for Micro LED panels.

Anticipation mounts for an Apple Watch featuring a Micro LED screen, with rumors circulating consistently. According to earlier information from TrendForce, the release of the Micro LED version of the Apple Watch, originally projected for the second half of 2025, has been delayed to the first quarter of 2026. Initial reports suggested the supply of Micro LED chips would come from Epistar and Osram and that Apple would handle mass transfer at its Longtan facility. Recent reports, however, suggest that Apple might entrust mass transfer and subsequent work to its long-term collaborator, LG Display (LGD).

It’s rumored that LGD has visited Apple’s Longtan facility, indicating a potential handover of equipment to LGD, facilitating smooth mass transfer and back-end processes. Despite shifts in the supply chain, this alteration underscores Apple’s commitment to advancing the Micro LED version of the watch into mass production, with wearables continuing to play a pivotal role in the practical implementation of Micro LED.

The industry’s technological development and investment in wearables, particularly watches and AR glasses, demonstrate a shift towards small-sized sectors represented by headsets and wearables. This indicates that Micro LED is edging closer to large-scale commercialization and breakthrough applications.

Regarding the commercial development of Micro LED, the launch of large-sized products remains a critical indicator. Korean giants Samsung and LGD are pivotal players in this regard. Following Samsung’s introduction of the high-end 110-inch Micro LED TV, LGD’s plans to release a 136-inch Micro LED TV in 2024 have surfaced. Factoring in Samsung’s and LGD’s entries, a total of five companies, including AUO, BOE, and SmartKem, have announced developments in Micro LED display technology in 2023.

Considering the market trends mentioned above, based on TrendForce’s projections, the production value of Micro LED chips is expected to reach $27 million in 2023, showing a 92% annual growth. Looking ahead, driven by the expansion of current application shipments and the introduction of new use cases, the estimated chip production value is set to hit $580 million by 2027. This anticipates a compound annual growth rate of 136% from 2022 to 2027.

(Photo credit: Samsung)

As August arrives, the LED industry is once again witnessing price increases. Recently, 8 Chinese companies including MLS, Ruisheng Optoelectronics, Developer Microelectronics, Cailiang, BOE, and Skyworth announced adjustments in the prices of LED products. Among them, MLS, BOE, Skyworth, and Cailiang have already announced price hikes multiple times this year.

The price adjustments in August primarily cover lighting, display packaging, display driver ICs, display, and lighting products, with increases ranging from 5% to 15%.

Regarding the reasons for this round of price adjustments, all the manufacturers have cited continuous increases in upstream raw material prices. The cost of production remains disproportionate to the selling price of the products. In order to continue offering high-quality products and services and sustain the long-term health of the industry, the decision to raise product prices has been made.

(Photo credit: BOE)

Taiwan’s leading panel manufacturer, AUO, is reportedly making a significant workforce reduction of around 200 employees. In response, AUO promptly issued a statement clarifying that these job cuts are part of a voluntary retirement initiative aligned with their flexible operational strategy. The company also announced the decision to shutter its C5D and C6C facilities located in the Tainan Science Park. These plants have been a primary hub for producing panels used in laptops, monitors, and televisions.

AUO emphasized that this strategic move is driven by a comprehensive evaluation of evolving market dynamics, terminal demand patterns, and the overarching supply-demand landscape. Embracing a flexible operational blueprint and a strong focus on emerging market technologies and high-value goods, AUO aims to ensure optimal efficiency and configuration across its manufacturing operations.

This decision comes after a five-month-long matchmaking program that was initiated following a capacity adjustment earlier this year. For employees who may be unwilling or unable to transition to other roles within the company, AUO is offering a voluntary retirement plan.

By concentrating their production planning and capacity allocation on other production lines, AUO seeks to enhance overall manufacturing capabilities and better adapt to market shifts. This strategic realignment highlights AUO’s commitment to navigating a swiftly evolving industry landscape while maintaining a competitive edge.

(Photo credit: AUO)

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)