Apple remains committed to microLED, despite suggestions that its project to bring the display technology to Apple Watch Ultra has been ditched, according to reports out of Taiwan and Korea.
Last week, Apple supplier ams OSRAM announced that a "cornerstone project" was "unexpectedly cancelled." Counterpoint Research's Display Supply Chain Consultants informed MacRumors that this project related to the rumored Apple Watch with a microLED display.
Apple analyst Ming-Chi Kuo later weighed in on the matter, saying that Apple has canceled the project for the "foreseeable future."
Pushing back against this narrative, DigiTimes and ETNews report that Apple still has multiple internal teams dedicated to microLED projects and is actively seeking alternative suppliers. "The OSRAM LED chip may have been replaced due to a drop in performance, and Apple may have already found a replacement for Taiwan or China, which is ahead in the microLED field," said ETNews.
Taiwan's AU Optronics (AUO) and PlayNitride are said to be among the prospective frontrunners to fulfill Apple's production needs, according to DigiTimes. AUO has just begun mass production of microLED watch display panels, while PayNitride is mass producing related chips.
Talks between Apple and PlayNitride have reportedly faltered due to scale limitations, but AUO has apparently emerged as a "promising partner" with its advancements in microLED display applications.
The reports align with comments made by TrendForce, which previously said that Taiwan and South Korea have a "robust lineup of manufacturers for Micro LED chips, backplanes, and related transfer processes."
Kuo last week claimed that microLED production costs are currently "too high" for its Apple Watch Ultra project to be "economically viable." But according to industry sources cited by DigiTimes, the high costs of early microLED production remain within expectations.
"Based on Apple's track record in development, high expenses tied to pioneering technologies are typically manageable and can be addressed as long as production scales up," said the report. "However, the primary challenge persists in overcoming associated technological bottlenecks."
These bottlenecks are said to include an absence of circuit control design within the LEDs, which potentially increases the risk of LED chip damage. "Furthermore, the stamp technology solution falls short in achieving precise transfer, particularly when interfacing with Osram's vertical chips," according to DigiTimes.
The main takeaway from today's reports is that Apple likely still hopes to eventually transition to microLED in the future, but the Apple Watch Ultra may not necessarily be the first product to adopt the technology. According to a separate report today by The Elec, Apple may instead decide to prioritize microLED technology for future, lighter versions of Apple Vision Pro while it waits for watch implementation costs to come down.
