New display technologies like Mini/Micro
LED, OLED and other innovative applications such as in-car displays, AR/VR, and virtual production are giving a fresh boost to the display industry.
With the rise of new opportunities, the links between different parts of the display industry have become stronger, and there is a clear trend towards industry integration. In 2023, several companies and research institutions in the display field teamed up through collaborations or acquisitions to bring in new display technologies and applications. Their aim is to build up expertise in these new display technologies, improve relevant supply chains and explore new possibilities in the display industry.
Partnerships between Major Players in Upstream and Downstream Segments: Breaking through New Challenges in Advancing Display Technology
According to a brief survey conducted by LEDinside, a total of 23 corporate collaborations were established within the display industry in 2023. These partnerships span various applications, including Mini/Micro LED technology, in-car displays, AR glasses, virtual production and more.
Partnerships established within the Display Industry in 2023
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Organizations involved
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Goal
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Display technologies and applications involved
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Time
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Porotech
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Foxconn
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Accelerating the commercialization of AR Micro LED displays
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Microdisplay
Micro LED
|
Dec.
|
|
Q-Pixel
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Silicon Catalyst
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Accelerating the manufacturing of full-color Micro LED displays
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Microdisplay
Micro LED
|
Nov.
|
|
Meta
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Tyndall National Institute in Ireland
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Research on the efficiency of microdisplays powered by Micro LEDs and other advanced AR technologies
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Microdisplay
Micro LED
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Jun.
|
|
Mojo Vision
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DigiLens
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Co-developing of Micro LED technology for AR glasses
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Microdisplay
Micro LED
|
May
|
|
FitTech
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K-Jet Laser Tek
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Expanding the development of Micro LED technology
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Micro LED
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Dec.
|
|
Changhong
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National Center of Technology Innovation for Display
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Research on critical technologies for high-brightness Micro LED projectors and displays
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Micro LED
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Dec.
|
|
SPIROX
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Southport
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Developing Micro LED defect inspection systems
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Micro LED
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Nov.
|
|
PlayNitride
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AUO
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Co-constructing a 6" Micro LED production lines
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Micro LED
|
Oct.
|
|
COREACH
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Hisense and Seoul Semiconductor
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Co-constructing a joint laboratory focusing on display and optical technologies
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Mini/Micro LED, etc.
|
Nov.
|
|
Novastar
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MTC Display
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Promoting widespread Mini/Micro LED display applications
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Mini/Micro LED
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May
|
|
Cedar
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TPV
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Developing COB display products and industry solutions
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Mini LED
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Nov.
|
|
K&S
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TSMT
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Promoting mass produced applications of Mini LED-backlit and direct-view displays
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Mini LED
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Aug.
|
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Hua Ying Technology
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Prima Optoelectronics
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Establishing a Mini/Micro LED joint venture
|
Mini/Micro LED
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Aug.
|
|
Leyard
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MISA and Engineering Holding Group of Saudi Arabia
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Co-establishing an LED display enterprise
|
LED display technology
|
Dec.
|
|
Honglitronic
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JEZETEK
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Manufacturing LED semiconductor products, along with market expansion and technological innovation
|
LED display technology
|
Dec.
|
|
Cedar
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Fucheng Group
|
Promoting automotive Mini/Micro LED displays and realizing lighting technology
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In-car display
Mini/Micro LED
|
Sep.
|
|
Huawei
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Changan Automobile
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Establishing smart vehicle business
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In-car display
|
Nov.
|
|
Tianma
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San’an Semiconductor
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Developing automotive LED chip technologies
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In-car display
|
Nov.
|
|
Himax Technologies
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Nexchip
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Expanding the supply of driver ICs for automotive displays
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In-car display
|
Oct.
|
|
BOE
|
ThundeRobot
|
Establishing a joint laboratory for gaming display innovation
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Gaming display
|
Jun.
|
|
Hymson
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South China Normal University
|
Collaborative research on novel displays and optical manufacturing
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Novel display technology
|
May
|
|
Unilumin
|
Jiuzhuan PRISM
|
Collaborative xR virtual production
|
xR virtual production technology
|
Sep.
|
|
Unilumin
|
SOBEY
|
Collaborative xR virtual production
|
xR virtual production technology
|
Aug.
|
|
Data are summarized based on brief statistics from LEDinside; additional information is welcome.
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Data source: LEDinside
Image credit: LEDinside
Mini/Micro LED: In 2023, approximately 14 collaborations were formed in the display industry, involving Mini/Micro LED technology. Thanks to its significant display performance advantages and broad application range, Mini/Micro LED has become a focal point for the future development of the display industry.
Today, Mini/Micro LED has rapidly been applied to large-sized displays, consumer TVs, monitors and laptops. However, unlocking broader applications and capturing a larger share of the consumer market still poses challenges due to technical immaturity and low production yields, leading to high costs. The difficulty of these challenges has driven more companies to opt for collaboration upstream and downstream, leveraging complementary strengths to overcome the development obstacles facing Mini/Micro LED.
Prominent companies are frequently seen in these collaborations. In October 2023, Micro LED developer PlayNitride signed a deal worth NT$700 million (approximately 159 million yuan) with major panel manufacturer AUO. PlayNitride will assist AUO in constructing a 6-inch Micro LED chip-on-carrier (COC) production line at the Longtan facility in Taiwan and provide a turnkey solution. The two companies planned to commercialize Micro LED display technology by the end of the year.
PlayNitride, primarily focusing on Micro LED technology, has already installed Micro LEDs in high-end TVs for its South Korean customers and has begun shipping products. In 2024, the manufacturer will apply Micro LED technology to smartwatches for customers in the US, and continue shipping high-end automotive Micro LED samples to clients.
With the gradual shipment of its Micro LED products, PlayNitride’s performance continued to rise, reaching a historic high of NT$156 million in August 2023. The manufacturer’s revenue for the first eight months totaled NT$620 million, a 140% increase compared to the same period last year.
In response to the increasing demand for Micro LEDs, PlayNitride continued to expand its production capacity. The current monthly capacity for 6-inch chips is 1,500-2,000 pieces, with the goal of reaching 10,000 pieces by late 2023.
On the other hand, AUO has over a decade of experience in Micro LED development and has actively formed a Micro LED ecosystem by partnering with upstream and downstream suppliers, covering complete solutions from LED innovations, mass transfer technologies, packaging to modules. AUO stated that 2023 marks the “Year of Micro LED”, and through collaboration with PlayNitride, it aims to rapidly advance the commercialization of Micro LED, launching screens for smartwatches, TVs, and automotive displays.
In addition to the two-way partnership, other well-known companies are opting for more comprehensive three-way collaborations, bridging upstream, midstream, and downstream segments to jointly research Mini/Micro LED technology.
In November 2023, COREACH signed an agreement with Hisense and Seoul Semiconductor to establish a joint laboratory, aiming to develop advanced display and optical technologies including Mini LED. As renowned companies in the new display module, optical semiconductor and smart terminal sectors, all three have made significant contributions to the Mini LED field.
Driven by the Mini LED module business, COREACH achieved substantial sales growth in 2023. Hisense continued to accelerate the penetration of Mini LED-backlit TVs and extended development in the upstream segment. Seoul Semiconductor applied Mini LED backlighting in areas such as automotive displays, becoming suppliers of Samsung and other leading companies. Through the partnership of these three entities, there is hope for further optimization of Mini LED technology, from which each relevant business is poised to benefit.
In-car Display: The new four trends in the automotive industry have greatly increased the quantity and size of automotive displays, opening up new business opportunities to the display industry. Currently, LCD is the mainstream technology for in-car displays, while OLED, Mini/Micro LED and other high-contrast, foldable display technologies provide better display effects. They also offer more flexibility for automotive design, thus gradually capturing more shares in the market.
For display suppliers, although the verification process for in-car display products is longer, the product lifecycle is also longer. With higher technical barriers and profit margins, the automotive display is a key focus for display companies in their future strategies. In 2023, many major manufacturers have already formed strong alliances regarding in-car display applications.
In November, Tianma and San’an Optoelectronics reached a strategic cooperation agreement. The two will jointly develop in-car LED chip technology and promote strategic cooperation in business and technology.
Tianma has been running in-car display business for nearly three decades and is one of the major players in this field. In-car displays include OLED and Mini/Micro LED technologies. In-car Mini LED products have been shipped in bulk to overseas major customers, while Micro LED in-car displays are being developed through innovative projects in collaboration with leading automakers worldwide. In anticipation of future applications in smart cabins, Tianma has also developed AR-HUDs with wide field-of-view and panoramic HUD (Iris) technologies.
As a wholly-owned subsidiary of San’an Optoelectronics, San’an Semiconductor focuses on the research and industrialization of integrated circuits, LED epi-wafers, and chip production. It inherits the LED chip production expertise and research capabilities of San’an Optoelectronics. With the chip technology support from San’an Semiconductor in the future, Tianma’s Mini/Micro LED in-car display technology capabilities will continue to improve, further expanding its market share in the in-car display sector.
Another noteworthy partnership was made between Huawei and Changan Automobile. In November, the two companies signed a memorandum of cooperation and founded a joint company specializing in automotive intelligent driving solutions, smart cabins, intelligent automotive digital platforms, smart car clouds, AR-HUDs and intelligent car lights. Huawei plans to integrate the core technologies and resources of its automotive intelligent solutions into the joint company.
In the automotive industry, Huawei positions itself as a component supplier and aims to help automakers build better cars by providing comprehensive automotive solutions. Huawei already has a variety of in-car lighting and display technology products, including AR-HUDs, intelligent car lights and smart cabins.
The joint company marks a crucial step for Huawei to strengthen cooperation with consumer car companies and expand the application of in-car lighting and display products. In addition to its partnership deal with Changan Automobile, Huawei is also calling for more automakers to participate in joint cooperation.
Virtual Production: Virtual production is one of the innovative applications of display technology. Within this application domain, LED display technology holds particular appeal. In recent years, the market size of LED displays for virtual production has continued to grow. Market consulting firm TrendForce anticipates that the market size will likely to reach $394 million in 2023.
However, LED displays in the field of virtual production face some challenges. For instance, the cost of LED displays for virtual production remains relatively high, and supporting industries such as hardware, software, and content production have not developed synchronously. To address these issues with the facilities and technology required for virtual production, LED display companies are actively expanding related technologies to provide customers with comprehensive solutions.
For example, Leyard combines LED displays with motion capture systems for virtual production, creating a complete next-gen digital studio encompassing previsualization, principal photography and post-production. AOTO, on the other hand, has formed a complete “hardware + software + content” solution for virtual production, including LED displays, control systems, special effects production and real-time rendering.
In an effort to accelerate the formation of comprehensive solutions, some LED display makers are exploring corporate partnerships to further enhance the application and development of LED display technology in the virtual production sector.
In May, Unilumin collaborated with the marketing technology company BlueFocus, leveraging their respective technological, talent, and resource advantages to actively cooperate in areas such as metaverse marketing, xR virtual technology, and digital asset construction. In August, Unilumin reached an agreement with a video technology company, where both parties will deeply cooperate in various fields, including xR extended reality system research and development, innovative application of production and broadcasting technology, hardware development and branding.
Unilumin has established a complete virtual production and filming full-chain solution, encompassing an xR virtual production system, special effect assets and DCI-certified LED cinema screens. Its subsidiary, Roe Visual, has created multiple virtual production studios overseas, ranking first globally in market share. Through collaborations with other Chinese companies, Unilumin aims to penetrate the domestic virtual production market and further enhance display solutions.
Major Corporate Acquisitions Swiftly Expand Display Technology and Business
For financially robust companies, in addition to deepening cooperation upstream and downstream, M&A serves as a means to rapidly acquire resources such as expertise and professionals. This enhances the capabilities of enterprises in new display technologies and allows them to seize opportunities in untapped markets.
In 2023, approximately nine corporate M&A events occurred in the display industry, according to a brief survey done by LEDinside. Most instances involved downstream and end-market companies extending into the upstream of the display industry chain, completing the integration of the new display technology supply chain. Companies are targeting rising trends such as Mini/Micro LED, Micro OLED, AR/VR glasses, in-car displays and other popular automotive applications.
Acquisitions and mergers within the Display Industry in 2023
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Funder
|
Acquired/merged entity
|
Display technologies and applications involved
|
Time
|
|
BOE
|
HC SemiTek
|
Mini/Micro LED technology LED display chips
|
Oct.
|
|
Hisense
|
Changelight
|
Mini/Micro LED technology LED display chips
|
Jan.
|
|
AUO
|
BHTC
|
In-car displays
|
Oct.
|
|
DSBJ
|
JDI
|
In-car displays
|
Jan.
|
|
Token Sciences
|
Token New Display
|
Tablet components and materials and touchscreens
|
Feb.
|
|
K&S
|
Advanced Jet Automation
|
Mini/Micro LED dispensers
|
Feb.
|
|
Lumens
|
Soft-Epi
|
GaN-based Micro LED materials
|
Feb.
|
|
Samsung
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eMagin
|
Micro OLED displays
|
May
|
|
Niche-Tech Semiconductor Materials
|
BVI Holdings
|
COB packaging and FC-BGA packaging
|
Jun.
|
|
Data are summarized based on brief statistics from LEDinside; additional information is welcome.
|
Data source: LEDinside
Image credit: LEDinside.
In recent years, two high-profile acquisitions in the display and LED industries have been the acquisitions by BOE and Hisense of LED chipmakers HC Semitek and Changelight, respectively. BOE and Hisense, positioned in the middle and downstream segments, are bridging the entire LED industry chain, strengthening strategic collaboration, and improving the development of future LED-related display businesses.
In late January 2023, after nearly a year of investments totaling 1.605 billion yuan, Hisense acquired a 22.88% stake in Changelight, becoming its controlling shareholder. Through the acquisition of Changelight, Hisense has fortified its strategic planning in the display industry chain, accelerating the research and development of new technologies (e.g., Mini LED and Micro LED) and product promotion. This move helps establish future resource advantages in the market and supply chain, solidifying its position in the display industry.
BOE announced its intention to subscribe to HC SemiTek’s shares for 2.084 billion yuan in 2022. The subscription was approved by the China Securities Regulatory Commission in June 2023, indicating a change in control of HC Semitek from Huafa Group to BOE. In October, HC Semitek announced its renaming as BOE HC SemiTek Corporation. The connection between the two companies has deepened, and they will jointly expand and strengthen their Mini/Micro LED business.
Another downstream-to-upstream acquisition was Samsung’s focus on Micro OLED display technology. In May 2023, Samsung Display acquired OLED micro-display manufacturer eMagin for $218 million (approximately 1.556 billion yuan), accelerating its business in micro-display applications for XR device. The goal is to provide micro-display products to Apple or other AR device developers in the future.
Recently, Samsung Display has also demonstrated its determination to develop the micro-display business through adjustments to its business structure. In the latest business structure, Samsung’s micro-display team has become a department directly managed by the CEO, moving away from its previous affiliation with the Samsung R&D Institute. The team plans to conduct research and development for the commercialization of micro-display technology at various stages.
Regarding in-car display applications, companies in the downstream segment have made significant moves. In October 2023, panel manufacturer AUO acquired German automotive component maker BHTC for 600 million euros (approximately 4.586 billion yuan). TrendForce believes that through the acquisition of BHTC, AUO will possess the Tier 1 supplier’s resources, expanding and strengthening AUO’s presence in the automotive market. AUO will transform from a panel manufacturer to a technical solution provider for cross-disciplinary vertical integration.
Conclusion
In the challenging economic landscape of 2023, display enterprises have proactively positioned themselves for future developments. Through partnerships and M&A, they have refined their supply chains, technological capabilities and human resource management, focusing on cutting-edge display technologies and applications. As the trend towards integration becomes clear, what changes can we expect in the display industry in the coming years? How will new developments unfold in emerging areas such as Mini/Micro LED technology, in-car displays, and micro-displays? Let’s wait and see.
(Author: Irving; Translator: Jane)
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