News
In the past few years, the rapid growth of the Mini LED backlight market has been closely tied to the support from consumer electronics giant Apple. Apple pioneered the integration of Mini LED backlight technology into tablet products, sparking increased demand for Mini LED technology in the consumer market. However, it seems that Apple is now steering away from the Mini LED backlight technology path.
Recently, well-known Apple supply chain analyst Ming-Chi Kuo released a 2024 forecast report for the new iPad models. The upcoming iPad Pro is expected to replace the current Mini LED backlight panel with an OLED panel.
Additionally, the 12.9-inch version of the iPad Air model will feature an Oxide backplane, similar to the one used in Mini LED backlight panels, to enhance display performance.
From Apple’s strategic shift in abandoning Mini LED in favor of OLED for iPad Pro, it appears that the primary consideration is cost.
While the manufacturing process for Mini LED has matured in recent years, resulting in continuous cost reductions, the current cost of Mini LED remains higher compared to the more established and mature OLED technology.
In contrast, OLED’s cost performance is noteworthy. According to observations from TrendForce, OLED manufacturers have committed to investing in 8.5th generation OLED for laptops and tablets this year, indicating a potential further decrease in OLED costs.
Furthermore, OLED offers features such as slim design, low power consumption, quick response, high clarity, and flexibility, similar to Mini LED backlight technology.
This not only enhances the display performance of iPad Pro but also optimizes aspects like thickness, weight, and energy consumption, aligning with the characteristics of portable tablet products.
Apple’s Planned Shift from Mini LED to OLED
Looking back at the development of Mini LED in recent years, Apple’s utilization of this technology has not been extensive, and it has typically been reserved for Apple’s most high-end products, such as the 2019 Pro Display XDR. Subsequent releases, including the iPad Pro and MacBook Pro, also adopted the same technology.
While Apple successfully integrated Mini LED backlight technology into the highest-end versions of displays, tablets, and laptops, some releases and production of Apple’s Mini LED backlight products were delayed during this period. This includes rumored products like the iMac Pro featuring Mini LED backlight screens and the second generation of the 27-inch display Apple Studio Display.
While Apple has been incorporating Mini LED backlight technology into high-end products, the company is also exploring the expansion of OLED technology beyond iPhones to include more devices.
Last year, it was reported that BOE is constructing an 8.6th generation OLED display production line to fulfill orders for Apple’s future iPad and MacBook models featuring OLED screens, expected to be operational by the end of 2024.
As for the upcoming iPad Pro tablet set to be launched as early as next year, there are indications that Samsung and LG will provide dual-layer OLED panels. This promises a doubling of screen brightness, an extended lifespan, and lower power consumption compared to Mini LED backlight technology.
Mini LED Backlight Demand Continues to Grow
TrendForce analysis indicates that, influenced by the Apple brand effect, Mini LED backlight has officially entered the application markets of laptops and tablets. However, due to high costs, Apple has notably slowed down the pace of introducing Mini LED backlight to laptops and tablets.
While the change in Apple’s display technology roadmap has had a certain impact on the Mini LED backlight market, especially in tablets and laptops where Apple holds a larger share, TrendForce’s report points out that the applications of Mini LED in TVs, displays, and automotive displays are still on a growth path.
It is worth noting that the main applications in TVs and displays continue to show a growth trend, while future potential applications like automotive displays provide more possibilities for the growth of the Mini LED backlight market.
With ongoing optimization of technology and costs, the overall Mini LED backlight market is expected to maintain a growth trend.
According to data from TrendForce’s report “2024 New Mini LED BLU Display Trend Analysis“, after a brief decline in shipments in 2023, applications with Mini LED backlight technology are expected to return to growth in 2024, with an estimated shipment volume of 13.79 million units.
With the trend of Mini LED terminal products becoming more affordable, the shipment volume is expected to continue growing, reaching an estimated 31.45 million units by 2027, with a CAGR of approximately 23.9% from 2023 to 2027.
(Photo credit: Apple)
News
According to TechNews, AUO held a board meeting and signed a contract with PlayNitride on October 31st. The deal entails PlayNitride assisting AUO in setting up a cutting-edge 6-inch Micro LED Chip on Carrier (CoC) production line at AUO’s Longtan Tech Park facility, offering an all-in-one solution. The contract is valued at a substantial 700 million NT dollars, with a duration of 30 months.
The CoC production line is a pivotal part of Micro LED manufacturing, and AUO emphasizes that this contract is distinct from the one they have with Ennostar.
AUO highlights that their partnership with PlayNitride in establishing the CoC production line not only puts them in control of the most vital raw materials for Micro LED but also enables them to bring CoC to Micro LED module production in-house. This strategic move is expected to significantly enhance production efficiency, increase yield rates, and bolster AUO’s competitiveness in terms of Micro LED product costs. This, in turn, accelerates the timeline for the mass commercialization of Micro LED.
AUO’s involvement in Micro LED research dates back to 2012, resulting in expertise in display technology and manufacturing processes. In the display industry, they’ve been integrating the supply chain and establishing a comprehensive Micro LED ecosystem, gradually working toward the goal of commercialization during the year of mass production for Micro LED. AUO has big plans for applying Micro LED display technology across various fields.
Addressing concerns about technology transfer, PlayNitride clarifies that technology transfer primarily pertains to well-established product technologies, carried out incrementally with different firms. At the same time, PlayNitride is committed to developing new processes and products, and with patent protection in place and specific company considerations, there’s currently no need to fret about any technology leakage.
In August this year, TrendForce predicted rapid growth in the Micro LED chip market, with an expected value of $27 million in 2023, marking a 92% YoY increase. This growth is expected to continue, reaching approximately $580 million in 2027, with a CAGR of about 136% from 2022 to 2027. AUO, known for LCDs, has already produced the world’s first 1.39-inch Micro LED watch panel. Major companies, including AUO’s current client Tag Heuer, are potential adopters of Micro LED wearable devices.
(Image: AUO)
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With the approach to the end of 2023, TrendForce revealed the tech trends in every sector, apparently, AI continues as the main focus to decide the direction of how the tech supply chain will be in the next few years, here are the seeings:
CSPs increase AI investment, driving a 38% growth in AI server shipments by 2024
HBM3e set to drive an annual increase of 172% in HBM revenue
Rising demand for advanced packaging in 2024, the emergence of 3D IC technology
NTN is set to begin with small-scale commercial tests, broader applications of this technology are on the way in 2024
6G communication to begin in 2024, with satellite communication taking center stage
Innovative entrants drive cost optimization for Micro LED technology in 2024
Intensifying competition in AR/VR micro-display technologies
Advancements in material and component technologies are propelling the commercialization of gallium oxide
Solid-state batteries poised to reshape the EV battery landscape over the next decade
BEVs in 2024 rely on power conversion efficiency, driving range, and charging efficiency
Green solutions with AI simulations emerging as a linchpin for renewable energy and decarbonized manufacturing
OLED’s expansion will across various applications driven by the innovation of foldable phones
News
According to a report from TechNews, Micro LED technology boasts superior qualities such as higher transparency, richer color saturation, increased brightness, enhanced efficiency, and lower power consumption. It also extends product lifespans, making it an optimal choice for automotive displays. However, it currently grapples with challenges related to cost, mass transfer, extensive inspections, and red light efficiency, posing obstacles to large-scale production.
News
According to a report by TechNews, TrendForce held the Micro LED Forum 2023 on the 5th, inviting numerous companies to share insights on the next-generation display market trends. Eric Chiou, Senior Research Vice President at TrendForce, believes that Micro LED technology is making significant strides in the metaverse sector this year. Many technological challenges need to be overcome, such as semiconductor integration techniques. Ever since AUO announced the mass production of Micro LED watches, cost reduction has become a major focus for many companies.
Chiou stated that to cut costs, chips are the most effective components to optimize. Manufacturers are shifting from using 6-inch wafers to 8-inch wafers for chip production to help reduce costs. In terms of mass transfer techniques, a few years ago, stamp transfer technology was in use, but the industry has been increasingly leaning towards laser transfer while striving for efficiency. In the future, there’s a strong possibility of moving towards a “hybrid transfer” approach, which combines stamp transfer and laser bonding methods.
For instance, companies purchasing equipment might conduct in-house experiments and modify equipment to suit their needs. Equipment providers are also drawing from industry experience to create new solutions, offering next-generation equipment to inexperienced customers, making the production process more practical.
Regarding product development, the most evident direction for Micro LED is in smartwatches. Chiou revealed that by 2026, the cost of a 2.12-inch Micro LED Apple Watch from Apple could potentially drop to $100, compared to the current $40-50 for OLED displays. This suggests that Micro LED may pose strong competition to OLED in the near future.
TrendForce anticipates that Apple Watch will attract more brands to invest in the development and promotion of Micro LED wearable devices, leading to a compound annual growth rate of 873% from 2022 to 2027. This year, the Micro LED chip production value is approximately $27 million, and with the market’s continuous expansion, it is expected to reach $600 million. The compound annual growth rate from 2022 to 2027 is projected to be 111%.
Dr. Mingchi Hsu, Special Assistant at the AUO Display Development Center, mentioned during the forum that the challenges of mass transfer in Micro LED technology were previously considered bottlenecks, but significant improvements have been made in the last two years. As for the inspection and repair aspects, AUO has developed its own equipment and has already completed its development.
Porotech’s primary technologies include Dynamic Pixel Tuning (DPT) and PoroGaN technology. Daniel He, Director of Product and Marketing Taiwan Branch Manager at Porotech, disclosed that they are currently mass-producing 8-inch GaN wafers and collaborating with Taiwanese foundries. Although they can produce 12-inch GaN chips, they plan to observe market response before proceeding.
Mr. Lin Mao-Song, General Manager of Coherent Technologies, a leading laser source technology company, stated that the inspection and repair phase in Micro LED manufacturing might be longer than the actual manufacturing process. A 99.95% yield rate implies a high repair proportion, making it crucial to enhance production yield and reduce costs. Laser technology plays a significant role in increasing production speed and yield, with excimer laser being the best choice for repair and mass transfer, achieving yields of over 99.99%.