As the largest panel production and manufacturing base and R&D application area, China has become an important engine for the development of the global display industry. Relevant data show that over the past decade, the scale of China's new display industry has continued to expand. between 2017 and 2021, the scale of China's new display industry grew from 275.8 billion yuan to 586.8 billion yuan, and the scale of the industry in 2023 to reach 855.9 billion yuan. Among them, Micro LED technology development and industrialization is advancing rapidly, and market opportunities are increasing, attracting many enterprises to enter and accelerating the reconstruction of the industrial pattern. However, from March this year, Apple cancel Micro LED screen news can be said to be full of flying, in the development of display technology has been in the key role of Apple, every move affects the industry attention. If Apple really canceled the Micro LED screen, whether it will have an impact on the LED display industry?

Giant give up Micro LED, pulling one hair and affecting the whole body

Following Apple announced the cancellation of the car building program, there is news about Apple to terminate the development of Micro LED on the Apple Watch also caused a lot of shock in the industry. From the timeline point of view, at the end of February, apple supplier osram announced that due to the unexpected cancellation of an important project, osram said, after a preliminary assessment, the company is expected to the first quarter of 2024 on micro LED related assets for the first quarter of 600-900 million euros of asset impairment, and to reassess the micro LED strategy. At the same time, Apple not only gave up the cooperation with OSRAM, but also gave up the strategic cooperation with another supplier, Kulisofa, according to Kulisofa had filed to the U.S. Securities and Exchange Commission: the company had cooperated with a strategic customer to carry out the W project, in order to support the customer's development and future mass production of certain technologies related to advanced display. Due to a strategic review of the client's business, the client has notified the company that it is canceling the program.

In addition, LG Display, which has been working with Apple to develop the technology and form a Micro LED Task Force (TF) for the Apple Watch, has also begun reassigning relevant personnel, according to the latest media confirmation. Potential innovations in wearable devices along with the termination of Apple's smartwatch will be delayed, and Samsung's Micro LED's large displays are also facing the challenge of high costs. This project shelved by Apple is likely to slow down the time to realize the large-scale application of Micro LED technology, and will also weaken the possibility of promoting the rapid maturation process of the industrial chain, and will form a considerable degree of impact on the overall industrial investment in Micro LED, technological development, and even the willingness of vendors to import the technology.

After all, previously, most people thought that following the adoption of OLED panels, Apple's Apple Watch screen would next be converted to Micro LEDs to improve screen brightness, make colors more accurate, improve battery life, and more. Most importantly, Micro LEDs won't have the same problems that OLED screens have been branded with. The reason why Apple would like to start with the Apple Watch to cut into Micro LED, mainly because it will be easier to start from the smallest screen products, the cost will also be more affordable. Today, with the partial announcement of the cancellation of cooperation with Apple, coupled with Micro LED working group layoffs, perhaps the future of Apple has no plans for mass production of Micro LED devices.

Micro LED why is it difficult to enter the scale of mass production?

Micro LED has high definition, low power consumption, long life and other no-short performance, is the next generation of mainstream technology that the display industry has high hopes. However, the extremely high technical threshold, including advanced technology and the complex process called LED transfer, makes Micro LED difficult to mass production, greatly limiting the process of commercialization of Micro LED. Although Apple holds the Micro LED screen design and manufacturing process, but in mass production and LED transfer operations, need to rely on other partners.

But in the end, the biggest obstacle limiting the development of Micro LED market is the high cost. Last year market research organization omdia published a Micro LED display panel cost report, 10-14 inches Micro LED panel cost reached $6000-10000, equivalent to a maximum of more than 70,000 yuan. At the same time, the report pointed out that this data is only based on the price of 10.1-inch Micro LED panel to make cost projections, rather than the manufacturer's offer. In reality, manufacturers will generally add a premium of 10-20% in the offer to ensure profits.

So, why is the cost of Micro LED so high? Mainly because at present Micro LED has not really formed a mature technology route, in addition, there is the supply of upstream materials, the construction of the industrial chain are also immature. Huge transfer is a major difficulty in the process of industrialization, it is understood that most of the industry's current use of huge transfer technology is divided into four categories: precision gripping, self-assembly, selective release, roller transfer printing. These huge amount of transfer technology still belongs to the "mass production before" the technology in general, at present he is facing the same bottleneck, at the same time this is the whole Micro LED production bottleneck. In addition, full-color technology, bonding technology, drive technology are not yet mature.

In short, even if we come to 2024, Micro LED technology has improved too much, but only to be able to solve the Micro LED technology bottlenecks and commercial costs, in order to truly realize the large-scale application of Micro LED.

Domestic screen enterprises layout Micro LED at the right time

Some industry insiders analyze that Micro LED indoor display screen is easy to do small difficult, at present there are already some mature large screen products on the ground, but P0. 6 within the production of micro-pitch products there are still bottlenecks in mass production. But in essence, whether it is a miniature screen or commercial large screen, with the process route to the material to the continuous improvement of equipment, the future still has the opportunity to break through, the industry is full of confidence.

In fact, Micro LED applications and its broad, from micro display to commercial large screen, Micro LED products in different forms, application scenarios diversified, although Apple and its supply chain in the Micro LED on the division, does not mean that for non-apple camp enterprises can also receive the impact, on the contrary, the domestic part of the manufacturers in the event to see is the opportunity rather than loss. The domestic industrial chain's investment rhythm has not changed, technology research and development is still continuing, in the Micro LED display track continue to invest resources to develop products.

Overall, the difficult but correct product layout requires the upstream and downstream industry chain to work together. To fully unleash the potential of Micro LED technology, the industry must face up to and overcome many challenges such as packaging technology, cost, etc. Continuous investment and development of equipment and standards are also indispensable. In terms of market share, Micro LED has been on the rise over the past few years, increasing its share in the overall LED display market. It is believed that with the turn of domestic large manufacturers, the future will be expected to fully release the technical advantages and market demand, injecting new momentum for the development of the industry.

Micro LED industry did not go out, the end of Apple's efforts may open the door for players, especially in the field of high-end display and automotive, Micro LED application value always exists. Before the fruits are borne, plowing and alternative ways will be an important driving force to push Micro LED steadily forward. Maybe there will be a lot of bumps on the road, but unlike Apple's road, for the LED display industry, the Micro LED race has turned from a sprint into a marathon.