Micro-OLED Gains Traction
As we have mentioned a number of times in previous notes, Apple has a strong interest in micro- displays, and has been researching the use of same for a potential AR/VR product. There is considerable competition in the micro-display space, not only between manufacturers, but between types of micro-displays that are vying for the attention of Apple and others, with LCD, OLED, quantum dot, and LED factions all pushing development to garner favor in the AR/VR world. Of the AR headsets in our database that have been released or announced, for which we have specific display information, 12 of 23 are based on micro-OLED displays, 5 on micro-LCD displays, 3 on micro-LED displays, with 3 (older) based on LCoS or DLP.
Given the ability for OLED displays to be both self-emissive and patterned, they offer a practical solution for micro-displays than less mature and therefore more expensive micro-LED solutions and nascent quantum dot micro-displays, and the weaker characteristics of micro-LCD. Currently Sony (SNE) is the leader in the micro-OLED display space, having been involved in the development of such products since 2009, originally for the replacement of optical viewfinders. Currently Sony displays use a WOLED structure with a color filter, similar to what LG Display (LPL) uses for it OLED monitor and TV displays, as patterning micro-OLED pixels, which are an order of magnitude smaller than those in a typical OLED TV display, is quite difficult.
Given the expertise needed to develop micro-OLED displays, there are only a few producers competing with Sony, including AUO (2409.TT) and EverDisplay (688538.CH), but the leader in large OLED displays, LG Display, is said to be at the cusp of ordering deposition equipment from Korea’s Sunic Systems (171090.KS) in order to develop a competitive micro-OLED display line that will compete with Sony for Apple’s potential AR/VR business. Sunic supplies both cluster and in-line OLED deposition systems designed for both large and small panel production, which include loaders and various chambers for organic and metal deposition, and are sold to many display manufacturers and research organizations and OLED lighting manufacturers.
While we do not know the exact tools being ordered by LG Display, which would give some indication as to what stage of development the company has reached, we would expect it will take some time for LGD to get qualified as a volume producer and would likely not be in the running for the first Apple AR/VR release, which is rumored for early in 2023, but given LGD’s expertise in the OLED space, we expect they will eventually become a viable competitor, especially given their OLED supply relationship with Apple, for whom they supply a substantial percentage of iPhone displays. China’s BOE (200725.CH) has also been developing micro-OLED displays using Sunic deposition tools but oriented toward military applications.
Given the ability for OLED displays to be both self-emissive and patterned, they offer a practical solution for micro-displays than less mature and therefore more expensive micro-LED solutions and nascent quantum dot micro-displays, and the weaker characteristics of micro-LCD. Currently Sony (SNE) is the leader in the micro-OLED display space, having been involved in the development of such products since 2009, originally for the replacement of optical viewfinders. Currently Sony displays use a WOLED structure with a color filter, similar to what LG Display (LPL) uses for it OLED monitor and TV displays, as patterning micro-OLED pixels, which are an order of magnitude smaller than those in a typical OLED TV display, is quite difficult.
Given the expertise needed to develop micro-OLED displays, there are only a few producers competing with Sony, including AUO (2409.TT) and EverDisplay (688538.CH), but the leader in large OLED displays, LG Display, is said to be at the cusp of ordering deposition equipment from Korea’s Sunic Systems (171090.KS) in order to develop a competitive micro-OLED display line that will compete with Sony for Apple’s potential AR/VR business. Sunic supplies both cluster and in-line OLED deposition systems designed for both large and small panel production, which include loaders and various chambers for organic and metal deposition, and are sold to many display manufacturers and research organizations and OLED lighting manufacturers.
While we do not know the exact tools being ordered by LG Display, which would give some indication as to what stage of development the company has reached, we would expect it will take some time for LGD to get qualified as a volume producer and would likely not be in the running for the first Apple AR/VR release, which is rumored for early in 2023, but given LGD’s expertise in the OLED space, we expect they will eventually become a viable competitor, especially given their OLED supply relationship with Apple, for whom they supply a substantial percentage of iPhone displays. China’s BOE (200725.CH) has also been developing micro-OLED displays using Sunic deposition tools but oriented toward military applications.
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