Apple and Micro-LED
Both the Taiwan and Korean trade press have indicated that Apple (AAPL) will be testing the use of micro-LED technology in the 2018 version of the Apple Watch, with the basis for the speculation a comment from IDC. The focus is a plant in the Hsinchu Science Park in Taiwan, which was opened in 2015 with little fanfare, in fact, the Apple name never appeared on the factory. The theory is that Apple will substitute micro-LED based displays for the OLED displays that are currently being produced for Apple by LG Display (LPL), and should the test prove successful, the technology would be adopted for other mobile devices. The plant in Taiwan will be producing the relatively small quantities needed for the Apple Watch.
We have noted a number of issues that surround the use of micro-LEDs in previous notes and believe that Apple has always extended its R&D reach to encompass all potential display technologies. While not all come to fruition, the company would be remiss if it did not pursue micro-LEDs, along with OLED technology, however producing a relatively small number of specific devices does not mean there is a clear path to mass production and widespread adoption. We have learned in the display space that there are few instances when a particular technology is ‘fits all’, and each, hopefully, has a place in the display supply chain, just as the case in solid state lighting where we believe LED and OLED lighting will share the overall market or in the TV space where OLED and quantum dots will both be available. Even if the ‘test’ is successful (more from a manufacturing and profit standpoint, as consumers would see little difference), high volume production of micro-LEDs for larger displays would not be available until 2020, assuming the manufacturing issues could be addressed.
We have noted a number of issues that surround the use of micro-LEDs in previous notes and believe that Apple has always extended its R&D reach to encompass all potential display technologies. While not all come to fruition, the company would be remiss if it did not pursue micro-LEDs, along with OLED technology, however producing a relatively small number of specific devices does not mean there is a clear path to mass production and widespread adoption. We have learned in the display space that there are few instances when a particular technology is ‘fits all’, and each, hopefully, has a place in the display supply chain, just as the case in solid state lighting where we believe LED and OLED lighting will share the overall market or in the TV space where OLED and quantum dots will both be available. Even if the ‘test’ is successful (more from a manufacturing and profit standpoint, as consumers would see little difference), high volume production of micro-LEDs for larger displays would not be available until 2020, assuming the manufacturing issues could be addressed.
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