A Different Dimension of VR·AR... 'This' Becomes a New Growth Opportunity in the Display Industry (Comprehensive)

Samsung and LG Intensify 'Micro OLED' Development... Official Mass Production in 2024
Apple, Meta, and Samsung Electronics to Launch MR Glasses... 12 Trillion Won Market Expected by 2027

[Photo by LG Display on the left]

[Asia Economy Reporter Han Yeju] "Samsung Display is preparing 'micro organic light-emitting diode (OLED)' in response to market demands. If we provide clearer customer value through definite technological solutions, the (micro OLED) market will open." (24th, Choi Juseon, President of Samsung Display)

To access the metaverse, hardware such as virtual reality (VR) and augmented reality (AR) devices is essential. The core of VR and AR devices is undoubtedly the display. Only high-performance displays can enhance visual comfort and quick response speed, increasing concentration on the virtual world. The 'market demand' mentioned by President Choi refers precisely to this aspect. As demand for IT devices such as TVs, laptops, and smartphones shrinks, the display industry is turning its attention to the metaverse device market.

According to the industry on the 25th, President Choi delivered a keynote speech titled "The Display Industry Changing Through Disruptive Innovation" at the opening ceremony of IMID (International Information Display Conference) 2022 held at BEXCO in Busan the previous day. He presented micro OLED as one of the specific goals to lead the self-emitting display market and achieve annual sales of 50 billion dollars.

President Choi stated, "For the development of micro displays, the light source must shift from organic to inorganic materials, and the backplane must expand from glass to wafers. This will bring about a technological paradigm shift where displays evolve into semiconductors," adding, "VR and AR are excellent opportunities for the display industry to expand the value chain and converge with other industries."

Micro OLED refers to a technology that deposits OLED elements on silicon wafers, a semiconductor material, instead of the conventional glass substrate. Because silicon is used as the substrate, it is also called OLEDoS (OLED on Silicon). Currently, companies such as Japan's Sony and China's BOE are producing micro OLED in small quantities.

It is especially attracting attention as the next-generation OLED display expected to be used in AR and MR glasses. AR and MR glasses require high resolution on small screens due to the short distance between the screen and the eyes. Unlike existing OLEDs with 300?400 PPI, micro OLED requires 3000?4000 PPI for this reason.

Currently, the mainstream displays for AR and VR devices are liquid crystal displays (LCDs), which are cheaper than OLEDs. The advantage of equipping OLEDs is that, due to their self-emitting characteristics, additional components such as backlights are unnecessary, allowing AR and VR devices to be made smaller and lighter. The response speed is also significantly faster, making them suitable for rendering high-spec gaming screens.

Currently, the two major domestic display companies, Samsung Display and LG Display, are fully committed to establishing micro OLED production lines with the goal of mass production in 2024.

Samsung Display officially announced the development of micro OLED during its Q2 earnings conference call this year, and LG Display has recently begun preparations for mass production by ordering deposition equipment for micro OLED. In May, LG Display also unveiled a 0.42-inch micro OLED for AR glasses at the Society for Information Display (SID) conference held in San Jose, California. This product attracted significant industry attention by achieving an ultra-high resolution of 3500 PPI (pixels per inch), about ten times that of existing OLEDs.

For domestic companies that decided to withdraw from the LCD business due to the influx of low-priced Chinese products, the expansion of the display panel market size driven by increased shipments of VR and AR devices is expected to be a new opportunity. The AR and VR device market is currently in its early stages and is expected to expand significantly with the launch of Apple's AR headset. Currently, most big tech companies such as Meta and Google are developing AR and VR devices, and Samsung Electronics recently entered this market by recruiting Executive Director Yoon Garam, formerly of Meta subsidiary Oculus VR, as head of Samsung Research's VR Lab.

Display market research firm DSCC forecasted that annual sales of displays for AR and VR devices will increase from $778 million (about 1.01 trillion KRW) this year to $9.3 billion (about 12.12 trillion KRW) by 2027. This means the market size will grow more than 12 times in five years.

This content was produced with the assistance of AI translation services.