In recent years, as the Chinese government strongly promotes domestic production, the localization rate of equipment in sectors such as semiconductors, precision electronic components, and new energy lithium batteries has steadily increased. Domestic equipment is gradually replacing imports, reducing dependency on external supply chains and safeguarding against potential critical equipment bottlenecks.

In the Micro LED field, Chinese equipment manufacturers are also actively advancing the research and production of key Micro LED equipment. This year, Chinese Micro LED equipment has achieved a series of breakthroughs, with multiple companies beginning to ship equipment to downstream clients.

Alphabetter Ships Micro LED Equipment to Taiwanese Client

On November 5, Alphabetter announced that its self-developed Micro LED wafer-level PL mass inspection device, the a-M1070, was officially shipped to Taiwan, marking the first equipment delivery for a Taiwanese client. Alphabetter stated that after the mass production of the a-M1070 product line, equipment shipments have largely covered major clients in the Micro LED industry within mainland China, fully realizing domestic substitution for this type of equipment.

The shipped a-M1070 mass inspection device uses photoluminescence testing technology, enabling non-contact, non-destructive, and ultra-fast luminescence performance testing. It can measure the brightness and spectral information of tens of millions of micro-LED chips on a COW (chip on wafer) or COC (chip on carrier) wafer within minutes, with a minimum validated chip size of 3μm x 3μm.

Continued Advancements in Micro LED Technology Provide Growth Opportunities for Chinese Equipment Manufacturers

It’s worth noting that Chinese equipment manufacturers have achieved several milestones in the Micro LED field this year. In addition to Alphabetter, companies such as Seichitech, JT Automation Equipment, Delphilaser, AMEC, SINEVA, and HSET have made notable progress in Micro LED testing, packaging, mass transfer, peeling, repair, and epitaxial growth equipment development.

Looking forward to the development of Micro LED technology, the LED industry continues to expand its Micro LED technology layout, with growth momentum largely unaffected by major tech companies such as Apple.

On the contrary, as downstream manufacturers accelerate Micro LED research and production, demand for related equipment continues to grow, representing a significant potential development opportunity for Chinese equipment suppliers.

Recently, the well-known MOCVD equipment manufacturer Aixtron indicated that it had received orders from clients establishing Micro LED research and pilot production lines, with several clients considering increasing Micro LED production by 2027 or 2028. Aixtron expects its Micro LED revenue to reach tens of millions of euros in its 2024 fiscal year, with a positive outlook for Micro LED business growth in the future.

Eric Chiou, Senior Research Vice President at TrendForce, also noted that while Apple has canceled its plans to mass-produce a Micro LED version of the Apple Watch by 2026, the industry continue to drive Micro LED technology development through acquisitions, joint ventures, and partnerships, with no apparent change in the commitment and trend toward developing Micro LED.

TrendForce projects that the global Micro LED chip market will reach approximately USD 62 million in 2024, with most demand stemming from large displays. As Micro LED technology advances into automotive display and near-eye display application markets, the global Micro LED chip market value is expected to reach nearly USD 600 million by 2028.

This estimate only reflects the chip segment of the Micro LED market. With the addition of the transfer, inspection equipment, and backplane segments in the Micro LED industry chain, the industry’s total market value will significantly exceed USD 600 million.

(Photo credit: Alphabetter)

In recent years, both Micro OLED and Micro LED microdisplay technologies have continued to make new performance breakthroughs. Entering 2024, Micro OLED and Micro LED microdisplay technologies are still on the path of development, with new applications for AR glasses increasing. The display industry is also allocating more resources towards Micro OLED and Micro LED technologies. In the future, Micro OLED and Micro LED could spark a new wave of competition in near-eye display technology.

Rising Share of Micro LED and Micro OLED in Near-Eye Display Applications

According to TrendForce, in the AR glasses sector, Micro OLED technology is expected to account for 54% of the market share in 2024, while Micro LED will be at 18%. By 2030, this situation will reverse, with Micro LED technology expected to reach 44% market share and Micro OLED dropping to 25%.

In the VR/MR field, LCD is the dominant display technology in 2024, holding a 79% share, while Micro OLED technology is only at 7%. However, Micro OLED technology is anticipated to dominate the high-end VR/MR market, with its market share projected to increase to 23% by 2030.

Judging from the new products released this year, as expected, AR glasses will have more applications of Micro OLED and Micro LED, with 8 new products using Micro OLED technology and 3 new products using Micro LED technology.

Accelerating Development of Micro LED/OLED Microdisplay Industry

Companies such as JBD, HS-MicroLED, Raontech, Raysolve, Vuzix, VueReal, Saphlux, Aledia, Q-Pixel, Mojo Visionand Stan technology have continued to enhance Micro LED microdisplay technology this year. They are addressing issues like full-color displays and power consumption, bringing new hope for the commercialization of Micro LED microdisplay technology.

On the other hand, companies are still seeking ways to improve development efficiency, with collaboration between upstream and downstream enterprises becoming a primary approach.

For instance, Micro LED technology vendor Porotech has partnered with U.S. single-wafer equipment supplier ClassOne, touch integration company Yicheng Group, and semiconductor front-end wafer foundry Lattice Semiconductor in 2024. They aim to develop and manufacture GaN products using silicon wafer to accelerate the production of high-brightness, high-pixel-density, small-sized, and cost-effective Micro LEDs, thus speeding up the commercialization process of Micro LED microdisplays.

Canadian Micro LED technology developer VueReal has also formed partnerships this year with prominent display companies like Raybaw Technology and semiconductor equipment manufacturer Toray Engineering of Japan, to enhance production and testing efficiency for Micro LED microdisplay technology.

Microdisplay Manufacturers Receive Near-Eye Display Orders

As Micro LED/OLED microdisplay technology matures, microdisplay manufacturers are beginning to receive more demand orders.

In the realm of Micro OLED technology, South Korean media reported in August that Samsung Display and Microsoft have signed a new cooperation agreement. Samsung will develop and supply Micro OLED panels for Microsoft’s mixed reality (MR) headsets, with a scale of around several hundred thousand units, although the specific amount has not been disclosed.

In the Micro LED technology sector, South Korean Micro LED driver chip manufacturer Sapien Semiconductor has signed contracts with U.S. Big Tech companies this year to develop Micro LED display driver chips for AR glasses. They have also signed CMOS backplane development contracts with Asian Micro LED display manufacturers and European microdisplay module suppliers, with contract amounts of 4.8 billion KRW, 4.395 billion KRW, and 3.939 billion KRW.

8 Major Micro LED/OLED Microdisplay Projects Enter New Stages

To meet future market demands and potential large clients, microdisplay companies have begun accelerating new technology production capacity this year. In 2024, Micro LED/OLED microdisplay projects from companies such as Stan Technology, BOE HC, HS-MicroLED, Metaways, Lakeside Optoelectronics, SIDTEK, and SEEYA Technology have entered various stages such as signing contracts, starting construction, equipment installation, and mass production.

7 Microdisplay Companies Complete Latest Financing, With the Highest Investment of 1 Billion RMB

In 2024, seven microdisplay-related companies have completed their latest round of financing, with several companies securing over 100 million RMB. This new funding adds momentum for research and development, mass production, talent acquisition, and market expansion in the microdisplay business.

(Photo credit: OPPO)

Per Korean media theElec on August 19, Samsung Electronics is considering outsourcing part of its Micro LED display production to a third party including China-based MTC.

According to industry sources cited by Korean media, Samsung is currently evaluating the possibility of outsourcing production due to cost considerations, particularly for the low-end Micro LED display targeting markets like India and the Middle East.

Industry sources further reveal that the proportion of outsourced orders is expected to account for 20-30% of Samsung’s total Micro LED display products.

It’s reported that Samsung mainly provides Micro LED display for residential and commercial applications. In TV market, Samsung purchased Micro LED chips from San’an and PlayNitride.

After these chips are placed on substrate, transferred and packaged, Samsung directly handles other processes. For low-end products, the majority of current Micro LED production is done by itself, with only a small portion outsourced.

Technically, Samsung’s latest Micro LED TV uses LTPS TFT (Low-Temperature Polycrystalline Silicon Thin-Film Transistor) technology, while its commercial Micro LED display is still based on PCB technology.

The report suggested that if Samsung outsources the production of commercial Micro LED modules to manufacturers like MTC, they would assemble them for Samsung using PCBA (Printed Circuit Board Assembly) methods.

Given that companies like MTC in China have improved their Micro LED module technology, Samsung believes there is no significant difference between outsourcing production and completing the related module processes in-house.

Moreover, it could reduce production cost. If cooperates with MTC, Samsung expects Micro LED production cost to potentially decrease by 5-10%.

Besides cost reduction, Korean media point out that Samsung’s consideration of outsourcing low-end product production could allow it to focus on Micro LED module bonding and seamless technology, which are closely related to semiconductor manufacturing processes.

Industry sources highlight that the bonding and seamless technology of Micro LED modules are more critical, as these processes determine the final quality of Micro LED, despite the highly overlapping supply chains of Micro LED chips among manufacturers.

In fact, Samsung’s plan to reduce Micro LED cost has long been an open secret within the industry. As per Korean media reports in July, Samsung has already initiated its cost reduction plan and is currently working with relevant partners to push this project forward.

However, it’s worth noting that the potential partner mentioned by Korean media is BMTC. According to information from LEDinside, MTC’s LED business includes two downstream subsidiaries: VMTC and BMTC.

The former focuses on COB fine-pitch display business, while the latter on SMD LED packaging, backlighting, and lighting. If Samsung were to collaborate with MTC on Micro LED manufacturing, the corresponding products would theoretically be VMTC’s COB modules.

Currently, no official confirmation is disclosed, and the actual situation remains to be verified.

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(Photo credit: Samsung)

Following Apple’s cancellation of the Micro LED watch project, the associated supply chain has been further impacted. According to a report from TechNews citing MicroLED-Info, the latest one is KLA Corporation, which has announced a complete exit from the flat panel display (FPD) equipment business.

KLA recently announced its complete withdrawal from the FPD market. The company, which acquired Israeli automated optical inspection (AOI) system supplier Orbotech for USD 3.4 billion, had entered the Micro LED market opportunistically through this acquisition, as Orbotech is a developer of inspection equipment for the semiconductor and display industries.

Due to slowdowns in investment and demand in the consumer electronics market, Orbotech’s performance has been lackluster in recent quarters, with the entire division accounting for only about 3% of KLA’s revenue, totaling USD 283 million in 2023, a decline of 48%. As per the same report, it’s believed that KLA’s decision to shut down this division is linked to the cancellation of a major project with a key customer, likely Apple.

As FPD is one of Orbotech’s main divisions, with KLA announcing its withdrawal from the FPD market, more than 100 employees from this division will face layoffs. KLA stated that exiting the FPD equipment business will not impact the company’s revenue expectations for this quarter, which are projected to be USD 2.3 billion with a variance of plus or minus USD 12.5 million.

Apple’s decision in March to cancel the Micro LED watch project sent shockwaves through the display industry and Micro LED developers.

German LED giant Osram is still considering its next steps, with expected losses of USD 650-900 million; electronic assembly solutions provider Kulicke & Soffa also announced losses of USD 110-130 million due to the cancellation of its collaboration with Apple. Additionally, LG Display’s Micro LED development team within the Strategic Customer (SC) department has started downsizing.

Read more

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(Photo credit: Apple)

Ennostar, a Taiwanese group focusing on the R&D and manufacturing of Micro LED, LED and compound semiconductor, has announced on January 19th a NTD 670 million (roughly USD 21.36 million) sale of the planned Micro LED production facility in Zhunan, Taiwan.

Its subsidiary, EPISTAR, is anticipated to expedite Micro LED development by integrating existing resources in alternative locations.

According to TechNews’ report, Chin-Yung Fan, chairman of EPISTAR, anticipates “symbolic revenue” from Micro LED starting this year. He notes that in 2021, with the rise of Micro LED and Mini LED, existing facilities were insufficient. While planning to build new facilities based on customer demand and market predictions, the pandemic delayed many new technologies.

Following the integration of Ennostar’s factory resources, which are now available for EPISTAR’s use, the decision has been made to sell the Zhunan facility.

During an earnings call in 2023, Ennostar mentioned that the initial capacity demand for Micro LED is still low. Consequently, the company has slightly postponed its plans for new production capacity and will closely monitor the actual market demand.

Fan also emphasized that the volume of Micro LED will undoubtedly increase, and the significant symbolic revenue is expected around 2027, given the longer evaluation time for Micro LED in automotive applications.

However, the sale of Ennostar’s factory also highlights the delayed mass production of Micro LED. Currently, Micro LED is primarily used in large display products like TVs and small displays for smartwatches.

AUO, a Taiwanese company that specializes in optoelectronic solutions, commenced Micro LED production at the end of last year, supplying to high-end smartwatch clients, expected to achieve cost efficiency.

As for Samsung and LG, they view Micro LED TVs as a core market, aiming to enhance profitability through positioning them as high-end television options. At CES 2024, Samsung showcased a transparent Micro LED screen, reaffirming the potential of Micro LED as the next-generation display technology. However, due to the high unit price, mass adoption in the consumer market is currently limited.

Furthermore, despite being a key industry influencer, Apple has not yet integrated Micro LED into its product roadmap. Notably, the Vision Pro, currently available for pre-orders, opts for Micro OLED instead, signaling that the practical implementation of Micro LED in products may still be some time away.

Although it will take some time for mass production to ramp up, Taiwanese manufacturers are actively laying the groundwork for Micro LED technology. Major Micro LED manufacturers, such as PlayNitride, have signed production line construction contracts with EPISTAR and AUO.

EPISTAR has completed construction by the end of last year, while AUO is expected to have production capacity by the end of next year. Both AUO and Innolux, under the umbrella of the CarUX initiative, showcased Micro LED automotive technology at this year’s CES.

Innolux has also purchased a significant amount of transfer equipment from PlayNitride, further enhancing the completeness of the Taiwanese Micro LED supply chain.

Read more

• [News] Samsung Semiconductor to Take Over Samsung Micro LED Business
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(Photo credit: AUO)