What impact did Apple's cancellation of the Micro LED development project have on the Micro LED industry?
Apple has been working on developing micro LEDs for smartwatches for many years, but it was reported that the project was canceled in March 2024.
Did Apple just kill the microLED industry?
https://www.yolegroup.com/strategy-insights/did-apple-just-kill-the-microled-industry/
Apple has been working for many years on developing displays using microLEDs, which are characterized by 'brighter and more vivid visuals.' MicroLEDs are a subdivision of conventional LEDs, and are a technology that allows for more precise light emission control and higher image quality.
Apple had previously built its own manufacturing facilities to design and develop micro-LEDs. However, micro-LEDs are much more difficult to realize than OLEDs, and development has been difficult. It was expected that they would eventually be installed in iPhones and Apple Watches, but the development project came to an end in March 2024 as the development costs and process complexity proved to be too high.
Ams-OSRAM , an Austrian integrated circuit manufacturer, was involved in the development of Micro LED as Apple's fab partner. Ams-OSRAM established a development center in Kulim, Malaysia with a total investment of $1 billion (approximately 160 billion yen) to develop Micro LED, but Apple's cancellation of the Micro LED development project resulted in an impairment loss of 600 million to 900 million euros (approximately 100 billion yen) and a major blow, including the layoff of employees .
'Apple's fab partners, including Ams-OSRAM, have spent a combined total of more than $1.3 billion to build the first microLED Apple Watch, scheduled for 2026. So why is Apple scrapping the project?' said Eric Virey, principal analyst at Yole Group.
However, Ams-OSRAM has multiple profitable product lines in addition to its fab partnership with Apple, and can make up for losses by selling equipment and facilities related to the development of micro LED for the Apple Watch. Therefore, Yole Group is optimistic that Apple's withdrawal from micro LED will not be a fatal blow to Ams-OSRAM.
In addition, many companies are working on incorporating micro LEDs not only into smartwatches and smartphones, but also into augmented reality (AR) technology, and it has been pointed out that the uses of micro LEDs are diverse. Yole Group said, 'The micro LED industry will be able to survive by shifting its focus to highly differentiated applications such as automotive, AR, and high-end consumer products, and then trying to expand into the more general consumer market.'
In recent years, the development of micro LED has been actively promoted by Taiwanese companies such as AUO, PlayNitride, and Ennostar, and with Apple's withdrawal, these companies are becoming the de facto leaders in the micro LED market. Furthermore, it has been suggested that Taiwan's Foxconn, its group company Innolux, and other Chinese manufacturers may enter the market by filling the gap created by Apple's withdrawal from micro LED development.
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in Hardware, Posted by log1r_ut