Samsung Display Opens Path to Military XR Devices with Imagine Acquisition

Samsung Display plans to complete the acquisition of 100% of the shares of the U.S. 'Micro OLED' (OLEDOS) company Imagine within this year. Once this process is completed, it is expected to open the door for entry into the military extended reality (XR) device market.

A visitor experiencing XR glasses at the Metaverse Expo.

On the 9th, the display industry anticipated that with Samsung Display's acquisition of Imagine, it would be possible to supply not only consumer XR devices like Apple's recently launched 'Vision Pro' but also military products. Since Imagine is currently generating defense business revenue with its unique 'RGB OLEDOS' technology in the U.S., Samsung Display securing this technology could pave a new path into the defense industry.

OLEDOS refers to OLEDs deposited on silicon wafers instead of glass substrates and is used to implement XR devices. Generally, the W-OLED method is used, where organic light-emitting devices producing white light are placed on silicon wafers, and red (R), green (G), and blue (B) color filters are applied on top. However, Imagine possesses technology that can produce RGB colors and display clear images without color filters.

The reason Samsung Display decided to acquire Imagine, a deficit company, for as much as $218 million (approximately 290 billion KRW) in May is due to this technology. Samsung Display established a team to develop RGB OLEDOS panels at the end of last year and has been working on product development with the goal of completing a pilot line for mass production this year and establishing a mass production system next year. After obtaining approvals from various countries, the acquisition of 100% of Imagine's shares is expected to be finalized within the year.

Apple's Mixed Reality (MR) Headset 'Vision Pro' [Image Source=Yonhap News]

The greatest synergy Samsung Display can gain from acquiring Imagine lies in accelerating OLEDOS panel development based on Imagine's technology. After Apple launched Vision Pro in June this year, Samsung Electronics has also been speeding up the launch of XR devices. From Samsung Display's perspective, if they can reliably produce OLEDOS panels, the number of customers to supply products to will increase. In a recent conference call, Samsung Display explained the background of the Imagine acquisition, stating, "The XR device ecosystem is rapidly activating recently," and "The industry expects that once XR devices become widespread, they will surpass smartphones and bring fundamental changes to people's daily lives."

It is analyzed that the acquisition of Imagine opens the door for Samsung Display to enter the defense business, which it had not previously pursued. Imagine's main revenue comes from defense projects.

Using Imagine's RGB OLEDOS technology to manufacture panels results in devices that can withstand extreme high and low temperatures and vibrations, operating without image flickering or color distortion in any environment, making them more efficient for military use. According to Imagine's 2022 business report, 74% of its sales are related to the military. This proportion increased from 66% in 2021. Industrial and medical use accounts for 13%, others 12%, and consumer use only 1%.

The military equipment made using Imagine's designed, developed, and manufactured RGB OLEDOS technology includes aviation helmets, weapon aiming and strike systems, night vision goggles, head-up displays, and simulation equipment. These devices offer excellent power efficiency and can produce high-resolution images in lightweight and compact sizes. In the past, Imagine held the core technology for the RGB OLEDOS process but was a company with clear limitations. With only 109 employees and relatively small manufacturing facilities, it was difficult to produce many products in a short time. Combining Samsung Display's large-scale panel production technology means Imagine's existing business can also accelerate its expansion.

In fact, not only global IT companies such as Apple, Meta, and Sony but also the defense industry are focusing on OLEDOS for military imaging acquisition devices. Since images stably rendered right before the eyes are tactically important for the military, as seen in the U.S. Army's push to purchase headsets applying Microsoft's (MS) HoloLens technology, OLEDOS is gaining attention. In line with the Vision Pro launch, Apple acquired Mira, a startup that has supplied augmented reality devices to the U.S. Air Force and Navy, in June, preparing a pathway for military supply.

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