What impact did Apple’s cancellation of the Micro LED development project have on the Micro LED industry?

Yole Group, a French research company, discusses the impact of Apple’s withdrawal from micro LED development on the industry.

Did Apple just kill the microLED industry?
https://www.yolegroup.com/strategy-insights/did-apple-just-kill-the-microled-industry/

Apple has been working on developing displays using microLEDs, characterized by “brighter, more vivid visuals,” for many years. MicroLEDs are a subdivision of conventional LEDs and are a technology that allows for more precise light control and higher image quality.

Apple previously built its own manufacturing facilities to design and develop micro-LEDs. However, micro-LEDs are much more difficult to make than OLEDs, and their development has been difficult. It was expected that they would eventually be installed on iPhones and Apple Watches, but the development project ended in March 2024 because the development costs and process complexity proved too high.

Is Apple’s plan to develop its own smartwatch display using “microLED” canceled? -GIGAZIN

Ams-OSRAM , an Austrian integrated circuit manufacturer, participated in the development of Micro LED as a fabulous partner of Apple. Ams-OSRAM established a development center in Kulim, Malaysia, with a total investment of $1 billion (about 160 billion yen) to develop Micro LEDs, but when Apple canceled the Micro LED development project, Ams-OSRAM suffered a hard blow, in particular a loss of value from 600 million to 900 million euros (approximately 100 billion to 150 billion yen) and dismissal of employees .

“Apple’s fabulous partners, including Ams-OSRAM, have spent a total of more than $1.3 billion to build the first microLED Apple Watch, scheduled for 2026. So why is Apple abandoning the project? said Eric Virey, principal analyst at Yole Group.

However, Ams-OSRAM has several profitable product lines in addition to its fabulous partnership with Apple, and can offset its losses by selling equipment and facilities related to micro LED development for the Apple Watch. Therefore, Yole Group is optimistic that Apple’s withdrawal from micro LEDs will not deal a fatal blow to Ams-OSRAM.

Furthermore, many companies are working on integrating micro-LEDs not only into smartwatches and smartphones, but also into smartphones. augmented reality (AR), and it was emphasized that the uses of micro LEDs are diverse. Yole Group said: “The micro-LED industry will be able to survive by focusing on highly differentiated applications such as automotive, augmented reality and high-end consumer products and then trying to expand in the more general consumer market. »

In recent years, the development of micro LEDs has been actively promoted by Taiwanese companies such as AUO, PlayNitride and Ennostar, and with Apple’s withdrawal, these companies have become the de facto leaders of the micro LED market. Additionally, it has been suggested that Taiwan’s Foxconn Group, its company Innolux and other Chinese manufacturers could enter the market by filling the void created by Apple’s withdrawal from micro LED development.