Including the continued investment in large display applications by manufacturers such as LGE, BOE and Vistar, and the development of AUO in watch products, new display applications are also gradually expanding the demand for head-mounted devices and vehicles. As a result, the output value of Micro LED chips is expected to reach $580 million by 2028, with a compound annual growth rate (CAGR) of 84% from 2023 to 2028.

Micro LED industry development challenges

Difficult cost reduction and technical process challenges are the main reasons for the cancellation of the Apple Watch project. Therefore, the continuous optimization of the production link is still the key to the development of the Micro LED industry. The massive transfer technology will gradually evolve from a single technology to a composite technology, such as combining laser transfer and stamp transfer, which is expected to achieve a transfer scheme with bonding capability and no lag. In addition, in addition to the focus on improving transfer efficiency, it is also necessary to ensure that higher wafer utilization is maintained during the transfer process, as well as high accuracy when the chip size is miniaturized, and other technical challenges.

Inspection and repair is the key to improving the manufacturing yield and further reducing the cost of Micro leds. Micro LED electrical detection technology is constantly upgrading, high-precision Probe Card (Probe Card) and Contactless Testing (Contactless Testing) two directions will lead the development of electrical detection technology, and bring new business opportunities for equipment manufacturers.

The cancellation of the Apple Watch prompted chip supplier ams OSRAM to consider selling its 8-inch plant in Malaysia. If it is sold to manufacturers in the current Micro LED display supply chain, it will have a positive impact on the technology development and cost structure optimization of the entire industry. By changing the technology route and target market, Chinese compound semiconductor manufacturers who actively develop 8-inch SiC power semiconductors may also become potential buyers, thus entering the international market, which is undoubtedly a way to improve the profitability of chip manufacturers.

Micro LED industry development opportunities

From the perspective of the application market, Micro LED still has obvious basic advantages compared to other competitive technologies such as Micro OLED. In terms of optical demand for AR glasses, Micro LED optical machines have entered the era of less than 0.2cc, with high brightness, small size characteristics, and brightness has moved toward 350,000 nits (Nits) or more. With the development of AI-assisted tools, the demand for AR glasses using Micro LED as a display technology is expected to gradually emerge in the next 1 to 2 years.

On the other hand, automotive displays do not pursue extreme PPI, but require higher contrast and reliability performance. Taking into account the driving needs, Micro LED technology has the characteristics of high brightness, high contrast, wide color gamut, fast response, etc., and can be integrated into intelligent cockpit integrated vehicle display solutions such as shaped, curved surface, flexible and haptic feedback, thus comprehensively upgrading the driving experience. The application prospect of Micro LED in automotive scenarios is also expanding, such as the future can be used as augmented reality and panoramic head-up display (AR-HUD and P-HUD), or combined with transparent display technology applied to the window as an innovative display technology.