“Apple abruptly cancels multi-million microLED project with partner ams Osram.” 

This headline has not only sent shockwaves across the global microLED industry but also raised serious doubts about the success of this technology in the consumer electronics segment. 

Even ams Osram, Apple’s German partner, announced that the company needs to reevaluate its expansion strategy and figure out a path to mitigate the damage inflicted by Apple’s withdrawal. 

When a corporate giant or an industry leader like Apple pulls out of a deal like this, one cannot help but question the future of microLED technology. 

So the question is, did Apple single-handedly damage the prospects of the microLED industry? Or is this a one-off incident that hinders the adoption of such cutting-edge display tech into the market? 

This article sheds light on the recent Apple-ams Osram project debacle and explores the microLED sector’s prospects. 

Apple’s Abruptly Ends MicroLED Project with ams Osram: What Exactly Happened?

Apple’s partnership with ams Osram looked like a promising project for both companies and the entire microLED sector. 

Things were going as planned for ams Osram, the German photonics company, focussing on qualifications and process development when it learned Apple was pulling out from the project. The rumors also suggested that Apple has laid off over 350 people working in Apple’s microLED team. 

So, why did Apple pull out of the deal?

While it is not entirely clear, experts believe: 

• Apple was falling short of achieving its targets. It was also struggling with mass transfer and downstream manufacturing; the key processes required for cost-efficient manufacturing. 
• Additionally, unsatisfactory results across pilot lines coupled with multiple technical problems were some of the other reasons cited by analysts for Apple’s exit. 

So, what next? How has the microLED industry reacted to this news? 

Stakeholders in the MicroLED Sector Undeterred by Apple’s Exit

While there is no doubt that Apple’s recent actions have shocked the microLED industry, it is not the end of the road. 

Many rumors are floating around suggesting that smartphone and smartwatch manufacturers may ditch microLEDs in favor of traditional technologies, including OLED and LCD.  

 Eric Virey, Principal Analyst at Yole Group suggests in their insights report that they expected a decline in patent filings for microLEDs, but activity remained high with over 11,000 new patents filed between 2021-2023. 

For example, Samsung expanded its microLED TV lineup with 76”, 101” and 114” models, but the focus is now on cars. Other companies are making progress with microLEDs for cars and AR devices, which seems promising. Smartwatches and other consumer products are still possibilities in the future.

China vs the Rest of the World?

However, the on-ground reality tells a different story, particularly across many Asian countries. 

South Korea and China are at loggerheads to come out on top and lead the microLED race. The South Korean patent office, Korean Intellectual Property Office (KIPO) has also reported a record number of patents registered related to the microLED technology. 

While South Korean microLED companies are leaving no stone unturned to make their presence, it appears that China is comfortably sitting in the driver’s seat at the moment. 

With around a 37% growth in the number of new patent applications, China is well ahead of South Korea (4.4%) and the U.S. (4.1%). 

MicroLED Apple Smartwatches and iPhones Will Have to Wait

Apple’s exit signals that consumers will have to wait for a while before they can buy microLED-powered Apple smartwatches or iPhones. 

As things stand, it appears that microLED technology has not matured yet to be deployed in an Apple Watch or the next version of the iPhone. That said, leading screen manufacturers in Asia have pinned their hopes on microLED.

 Senior managers at Samsung say that “microLEDs are the future”. That said, companies like Samsung, LG, and more need to figure out a cost-effective way to integrate and manufacture microLED screens.

All Eyes on Taiwan

Taiwan is tipped to play a key role in the development of the microLED industry in Asia. South Korean companies are joining hands with Taiwanese companies to compete with China in the microLED market. 

While Korean companies including Samsung and LG have increased orders in Taiwan this year, Taiwanese companies are also heavily investing in the development of the microLED technology. 

In fact, experts believe that Apple’s decision to step away from the microLED industry is a blessing in disguise for Taiwanese companies including Foxconn and Innolux who can leverage domestic supply chains to make the most of the situation. 

Parting Notes

Although Apple has abandoned its microLED initiative, stakeholders are optimistic that the microLED industry will witness steady growth in the upcoming years. 

At present, it appears that China and South Korea are in the lead for microLED development driven by the increasing demand for energy-efficient and cutting-edge display technologies. 

On the other hand, Taiwan is also expected to dictate the course of the microLED sector thanks to the increasing partnerships with South Korean companies, including Samsung and LG. 

While there is no doubt that Apple’s departure serves as an eye-opener to address cost and production challenges, it also puts additional pressure on the current market players to showcase the tech’s versatility and usefulness.