Apple has scrapped its plans to develop a Micro LED smartwatch in 2024, dealing a blow to the technology's immediate prospects. Yet, the scene at CES 2025 suggests Micro LED remains a hotbed of innovation, with companies pressing ahead on new products and breakthroughs. Apple's retreat may signal challenges, but it hasn't dampened industry momentum.
Despite advancements, Micro LED still faces hurdles, including mass transfer complexities, wafer utilization efficiency, chip miniaturization precision, testing, and repair processes. Most critically, reducing costs to compete with LCD and OLED remains a formidable task. High-end applications and niche markets are seen as the near-term lifelines for Micro LED's commercial viability.
The technology is gaining traction in AR glasses, automotive displays, and transparent screens. AR devices, fueled by investments from Meta and Google, are drawing increased market attention in 2024. New products from these tech giants, along with entrants like Thunderbird, Oppo, ChaseWind, Vuzix, and Rokid, signal intensifying competition. Micro LED's high brightness, compact size, and low power consumption align well with AR's demand for lightweight, energy-efficient displays. The rise of AI-assisted tools is expected to further boost adoption.
In the automotive sector, Micro LED is gaining ground in smart cockpit displays and AR head-up displays (HUDs). While the industry's lengthy verification cycles slow mass deployment, panel makers see the segment as a long-term revenue driver with stable orders and higher profit margins. By 2026-2027, automotive applications of Micro LED are expected to gain traction.
Transparent displays represent another frontier. At CES 2025, at least ten companies unveiled Micro LED-based transparent products. AUO introduced the Virtual Sky Canopy, the world's first large-scale seamless Micro LED sunroof, offering an immersive experience.
The potential extends beyond cars to retail, department stores, public transportation, and consumer electronics, with AUO, Innolux, BOE, Tianma, Samsung, and Lenovo actively investing in the segment. AUO showcased multiple transparent display sizes, targeting home windows, retail showcases, and smart cockpits. Samsung's Micro LED transparent windshield at CES 2025 also drew significant attention.
Panel makers are racing to scale production while driving down costs. AUO has established a 4.5-generation Micro LED production line and plans mass production in 2025. Innolux has begun production on its 3.5-generation LTPS line and intends to expand to a 6th-generation facility. Foxconn is teaming up with Porotech to enter the AR market, leveraging GaN-based Micro LED wafer technology. The company is setting up a processing line in Taichung, targeting mass production by late 2025.
BOE, having acquired LED manufacturer Huacan Optoelectronics, is doubling down on Micro LED. It launched the world's first 6-inch Micro LED mass production line in Zhuhai by the end of 2024, aiming to supply large commercial displays, AR/VR headsets, and wearables. With full capacity, it will produce 24,000 6-inch wafers and 45,000 kk pixel components annually.
These investments mark the beginning of an industry-wide arms race in Micro LED. While still in its early stages, players are refining technology and forging partnerships to accelerate ecosystem development. With breakthroughs on the horizon, Micro LED is set to carve out a growing presence in next-generation displays.
