The Micro LED development was hit hard in March 2024 after Apple decided to cancel the Micro LED watch project. Slowdowns in aspects including investments, technological development, and widespread use are unavoidable. Nevertheless, chip miniaturization, which is closely associated with cost reduction for Micro LED chips, continues to move forward. LGE, BOE, Vistar, and other manufacturers have invested in large-sized display applications, while AUO continues developing its watch products. Regarding novel display applications, Micro LED can be seen in head-mounted and automotive devices. Therefore, TrendForce forecasts the market value of Micro LED chips to reach USD 580 million in 2028, with an 84% CAGR from 2023 to 2028.

Challenges on Micro LED Industrial Development
The high cost and technical and manufacturing issues are major reasons prompting Apple to terminate its watch project, signifying that manufacturing process optimization remains a critical task for Micro LED. Regarding mass transfer, individual techniques will be gradually replaced by combined approaches, such as the combination between laser transfer and stamp transfer. It will likely come with bonding function and hovering-free solutions. In addition to increasing transfer efficiency, manufacturers have to ensure a higher wafer utilization rate during the transfer process and highly accurate alignment as chips are miniaturized; these are challenges that manufacturers have to overcome.

The testing and repair process is the key to yield rate improvement and further cost reduction. Micro LED electrical testing is now being upgraded based on the existing techniques. Specifically, the high-precision probe card and associated novel testing technique (i.e., contactless testing) will lead the advancement of electrical testing technology, which also marks a new business opportunity for equipment providers.

The cancellation of the Apple Watch project also prompted ams OSRAM to consider selling its 8" factory in Malaysia. If the manufacturing facility is acquired by a manufacturer within the Micro LED display supply chain, the entire industry will benefit from it regarding technological development and cost structure optimization. From the perspective of transfer technology choice and target markets, Chinese compound semiconductor manufacturers—active in developing 8" SiC power semiconductors—are likely to bid for the facility with efforts to expand their business overseas. For chip manufacturers, this deal will be a solid approach to higher profitability.


Opportunities for the Micro LED Industry Development
From the perspective of applications, Micro LED has an evident edge over other technologies (e.g., Micro OLED) concerning basic properties. For example, optical engines for AR glasses must be small and deliver high brightness, while a Micro LED engine comes with a volume that is smaller than 0.2cc. As for the requirement of maintaining high brightness to enhance display resolution in all weather conditions and various scenarios, a Micro LED device is able to offer a brightness of 350,000 nits and above. Following the rapid, comprehensive, and widespread development of AI assistant functions in recent years, the demand for Micro LED displays as part of AR glasses will gradually emerge in the next 1 to 2 years.

Automotive displays do not require a high PPI level, but they do need greater contrast and reliability. Concerning drivers’ demand, manufacturers have incorporated Micro LED—known for high brightness, high contrast, wide gamut, and short reaction time—with integrated solutions for smart in-cabin displays featuring free, curved, and flexible form as well as haptic feedback, aiming to comprehensively upgrade driver experience. Such application helps expand the possible automotive scenarios suitable for Micro LED. For example, Micro LED displays can serve as the AR-HUD or panoramic HUD (P-HUD) of vehicles, or they can be combined with transparent display technology to become innovative window displays.

TrendForce believes that AR head-mounted and automotive scenarios will be the next step for Micro LED development, and the two sectors will further provide “abundant nutrient” to this cutting-edge display technology.

Author: Eric, Thea / TrendForce

TrendForce 2024 Micro LED Market Trend and Technology Cost Analysis
Release: 31 May / 30 November 2024
Language: Traditional Chinese / English
Format: PDF
Page: 160-180

TrendForce Micro LED Market Trend and Technology Cost Analysis- 1H24
Chapter I. Micro LED Market Analysis

• 2024-2028 Micro LED Market Size Analysis: Large-sized Displays
• 2024-2028 Micro LED Market Size Comparison: Large-sized Displays
• 2024-2028 Micro LED Market Size Analysis: Wearable Displays
• 2024-2028 Micro LED Market Size Comparison: Wearable Displays
• 2024-2028 Micro LED Market Size Analysis: Head-mounted Displays
• 2024-2028 Micro LED Market Size Comparison: Head-mounted Displays
• 2024-2028 Micro LED Market Size Analysis: Automotive Displays
• 2024-2028 Micro LED Market Size Comparison: Automotive Displays
• 2024-2028 Micro LED Market Size Comparison: Mobile Devices/IT Displays
• 2024-2028 Market Value Analysis
• 2024 Micro LED Market Share Change Analysis by Applications
• 2024-2028 Wafer Market Demand Analysis

Chapter II. Micro LED Technology Development
2.1 Micro LED Mass Transfer Technology Development

• Micro LED TFT Backplane Technology Development
• Mass Transfer Technology Development
• Laser Transfer
• Contact Transfer Vs. Contactless Transfer
• Mass Transfer Technology: Combined Physical Mechanism
• Mass Transfer Technology: Combined Transfer Process
• Mass Transfer Technology: LGE’s MDSAT Transfer Technology
• Mass Transfer Technology: Factors Affecting LED Transfer Rate Analysis
• Mass Transfer Technology: Factors Affecting Transfer Efficiency Analysis
• Mass Transfer Technology Development Summary

2.2 Micro LED Inspection Technology Development

• Micro LED Inspection Approaches Overview
• Micro LED Electrical Testing Solutions
• High Accuracy Probe Card Contact Electrical Testing—NanoEx
• Contactless Electrical Testing — Top Engineering
• Chapter III. Micro LED Large-Sized Displays Market Analysis
• 2024 Micro/Mini LED COG Video Wall Specification and Progress
• 2024 Micro/Mini LED COG Video Wall Specification and Progress
• Micro LED Video Wall Manufacturing Analysis
• 2021-2028 6-inch Micro LED COC Price Trend
• Micro LED Chip Yield Rate and Brand Target
• Micro LED Chip Yield Rate and Brand Target
• Samsung/AUO LTPS Driver Framework Analysis
• Routing For DDI Connection in Spliced Displays
• Side Wiring Technology
• COG (Side Wiring) Technology Challenge Analysis / Player Roadmap
• TGV(Through Glass Via) Technology Analysis
• TGV Solution Provider: Corning

Chapter IV. Micro LED Wearable Display Market Analysis

• Apple Micro LED Watch Specification and Cost Analysis
• Micro LED Watch Manufacturing Analysis
• Apple Micro LED Watch Manufacturing Challenges Analysis
• Apple Cancelled Micro LED Project
• Impact From Apple’s Cancellation of Watch Project on Industry
• ams OSRAM 8-inch Factory in Malaysia Situation Analysis
• AUO Circular Micro LED Display Panels Plan
• Touch Taiwan Micro LED
• Tag Heuer Micro LED Watch Specification and Cost Analysis

Chapter V. Micro LED Automotive Display Market Analysis

• Automotive Display Challenges: Solar Load
• 2024 HUD Product Specification Analysis
• 2023-2024 HUD Product Price Analysis
• AR-HUD Technology Analysis
• AR-HUD Technical Barriers
• Panoramic Head-up Display (P-HUD) vs. Transparent Display
• Micro LED Automotive Display Highlight: Brightness
• 2024 Micro LED Automotive Transparent Display Cost Analysis
• Automotive Displays Challenges: Safety and Environmental Protection

Chapter VI. Micro LED Player Dynamic Updates

• Micro LED Industry- Capital Investment, M&A, Alliance, and Joint Venture
• 2024 Micro LED Player Capacity Analysis
• 2024 Micro LED Equipment Highlights
• JBD
• Raysolve
• Innovision
• Sitan
• Saphlux
• Mojo Vision
• Ennostar
• PlayNitride
• Innolux
• 2024 Micro LED Key Products
• 2024 Micro LED Key Products- Continental
• 2024 Micro LED Key Products- Lenovo