Taiwan is gradually positioning itself as a global leader in Micro LED development, driven by extensive investments in core areas like epitaxial wafers, TFT substrates, mass transfer, and full-color display technologies. However, with OLED technology advancing rapidly, Taiwan must redouble innovation efforts to sustain the competitiveness of Micro LED technology.
The government-funded Industrial Technology Research Institute (ITRI) highlighted that the performance gap between Micro LED and OLED is narrowing, emphasizing the need for Taiwan's display industry to speed up Micro LED advancements. Key goals include reducing costs and creating differentiated applications such as transparent displays, stretchable screens, ultra-large displays, and specialized splicing for niche applications.
Primary applications in AR glasses, but TV revenue could lead
Micro LED panel shipments are expected to focus initially on augmented reality (AR) smart glasses. However, the technology also shows strong potential in markets like wearables, TVs, automotive displays, and transparent displays. Integration into devices such as IT equipment and smartphones is not anticipated until after 2030.
Micro LED applications in consumer electronics face challenges, with high pixel density and larger chip counts increasing both mass transfer complexity and costs, which could delay mass production. While AR smart glasses are likely to lead in panel shipment volume, TVs could be the main revenue driver. In 2024, Micro LED TV panel prices are expected to reach tens of thousands of US dollars; even with significant cost reductions by 2028, prices may remain several dozen times higher than those of AR smart glasses.
According to ITRI, the global Micro LED panel market reached approximately US$25 million in 2023 and is projected to grow to US$1.5 billion by 2028.
Brand deployments: Samsung dominates TVs, Apple refines strategy
Samsung Electronics continues to lead the Micro LED TV sector, offering models positioned as the most premium options in its TV lineup. These TVs are available in 76-, 89-, 101-, and 114-inch sizes, with the 89-inch model launched in 2023 at around US$100,000. The other models, released in 2024, range from US$90,000 to US$175,000. Taiwanese companies are integral to Samsung's supply chain, with AU Optronics (AUO) providing backplanes via a splicing technique and PlayNitride supplying Micro LED chips.
Apple has invested billions into developing its proprietary Micro LED technology, initially targeting the Apple Watch. However, yield, cost, and technical challenges led to adjustments in Apple's plans earlier this year. Nonetheless, industry experts believe Apple may still leverage Micro LED for future products like Apple Glass, where its technical advantages would be highly suitable.
AUO advances Micro LED smartwatch technology
AUO is leading efforts to bring Micro LED to smartwatches, which have lower resolution requirements and fewer chips, making them well-suited for this energy-efficient, high-brightness technology. However, Apple's adjustments to its Micro LED plans have impacted smartwatch panel shipments. Looking forward, panel manufacturers are likely to drive growth in this segment.
For AR smart glasses, Shanghai-based JBD is the leading producer, currently the only company mass-producing Micro LED on Silicon (LEDoS) panels. Over 25 products, mostly from Chinese brands, now use JBD's LEDoS technology, which is built on CMOS silicon substrates--a challenge for manufacturers more accustomed to glass TFT processes.
ITRI forecasts that LEDoS technology will reach a penetration rate of about 35% in AR smart glasses by 2028, with demand for LEDoS panels expected to exceed six million units. Chinese brands currently dominate the AR smart glasses market, with China remaining the primary market. This dominance enables China to drive demand for LEDoS.
Micro LED in automotive: A niche with high potential
Micro LED also shows promise in automotive applications, where its transparency, brightness, and reliability offer unique benefits over competing display technologies. Luxury carmakers, with greater tolerance for panel costs, may find Micro LED displays particularly attractive, marking it as a promising niche segment.
