Adding to the mix – Micro-OLED
Not to be confused with mini-LED or micro-LED, micro-OLED is as the name suggests, a technology that reduces the size of OLED pixels in order to squeeze more into a small space. While they are similar to micro-LEDs in that they are both self-emissive, quite small, and neither use existing LCD technology, micro-OLED pixels are made of organic materials, similar to those used currently, while micro-LEDs are made of inorganic materials such as Gallium and Indium. They further differ in that LEDs are produced primarily on sapphire substrates while OLED are typically produced on glass, plastic or metal. In the case of micro-OLED, the substrate is a silicon wafer.
While micro-LED development is being carried out by a number of companies, much of the press related to micro-LEDs relates to Apple (AAPL) who has been developing both mini-LED and micro-LED technology at their ‘secret’ facility in Taiwan in conjunction with Ennostar (3714.TT), AU Optronics (2409.TT) and others. While they are working toward commercializing micro-LED technology, it seems they are also working on developing micro-OLED technology, which has a target market in VR/AR applications. Apple is said to be working with Taiwan Semi (TSM), whose obvious expertise in ultra-small structures on silicon would likely be the place to look for help in such development. That relationship is expected to be focused on a 1” display that could be incorporated in a pair of glasses and uses a waveguide to project the micro-OLED image on the user’s eye, potentially the basis for a VR device from Apple, which has been rumored for some time.
At the same time, Chinese panel producer BOE (200725.CH) is also said to be developing micro-OLED technology through a JV with the Yunnan Provincial government that would also be for VR/AR applications and is expected to release at least a sample version in 2H this year. Sunic Systems (171090.KS) has supplied BOE with the deposition equipment for the JV as part of a $2225m supply deal with BOE and has indicated that such equipment accounted for 50% of sales last year and is expected to account for 40% this year as Chinese panel producers move into more specialized OLED displays.
However producing high resolution OLED displays using standard deposition tools is highly dependent on the masks that pattern OLED materials during the process. These masks would have to have highly controlled tolerances to be able to place such small material points in such a small area. While such tolerances are achievable, they are a function of the mask thickness, meaning the thinner the mask the higher the pixel count, however this creates a mask that is subject to deformation during the deposition process, which would cause pixel size and overlap issues that would compromise yield. We expect step function increases in micro-OLED resolution over the next few years as those challenges are resolved with new materials and processes.
It might seem counter-intuitive that CE companies like Apple and BOE are developing parallel technologies that are, in theory, competing with each other, but given the early stage of technology development for both micro-OLED and micro-LED such parallel development is a hedge against either self-emissive technology hitting roadblocks that are either insurmountable or are commercially non-viable. While Apple has rarely been a company to use bleeding edge technology, they have been using their vast financial resources to develop what might become generic technology in the future. Such programs do not always produce positive results, but at worst the stopped clock rule will eventually kick in. Once they have an edge in a particular technology, they can use their development partners to become mass producers and offset much of the risk while guaranteeing a high volume source.
While micro-LED development is being carried out by a number of companies, much of the press related to micro-LEDs relates to Apple (AAPL) who has been developing both mini-LED and micro-LED technology at their ‘secret’ facility in Taiwan in conjunction with Ennostar (3714.TT), AU Optronics (2409.TT) and others. While they are working toward commercializing micro-LED technology, it seems they are also working on developing micro-OLED technology, which has a target market in VR/AR applications. Apple is said to be working with Taiwan Semi (TSM), whose obvious expertise in ultra-small structures on silicon would likely be the place to look for help in such development. That relationship is expected to be focused on a 1” display that could be incorporated in a pair of glasses and uses a waveguide to project the micro-OLED image on the user’s eye, potentially the basis for a VR device from Apple, which has been rumored for some time.
At the same time, Chinese panel producer BOE (200725.CH) is also said to be developing micro-OLED technology through a JV with the Yunnan Provincial government that would also be for VR/AR applications and is expected to release at least a sample version in 2H this year. Sunic Systems (171090.KS) has supplied BOE with the deposition equipment for the JV as part of a $2225m supply deal with BOE and has indicated that such equipment accounted for 50% of sales last year and is expected to account for 40% this year as Chinese panel producers move into more specialized OLED displays.
However producing high resolution OLED displays using standard deposition tools is highly dependent on the masks that pattern OLED materials during the process. These masks would have to have highly controlled tolerances to be able to place such small material points in such a small area. While such tolerances are achievable, they are a function of the mask thickness, meaning the thinner the mask the higher the pixel count, however this creates a mask that is subject to deformation during the deposition process, which would cause pixel size and overlap issues that would compromise yield. We expect step function increases in micro-OLED resolution over the next few years as those challenges are resolved with new materials and processes.
It might seem counter-intuitive that CE companies like Apple and BOE are developing parallel technologies that are, in theory, competing with each other, but given the early stage of technology development for both micro-OLED and micro-LED such parallel development is a hedge against either self-emissive technology hitting roadblocks that are either insurmountable or are commercially non-viable. While Apple has rarely been a company to use bleeding edge technology, they have been using their vast financial resources to develop what might become generic technology in the future. Such programs do not always produce positive results, but at worst the stopped clock rule will eventually kick in. Once they have an edge in a particular technology, they can use their development partners to become mass producers and offset much of the risk while guaranteeing a high volume source.
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