Investments in Production
The future of microLED, which is considered to be a “dream display,” appears promising as the once formidable barrier of high costs is expected to rapidly diminish in the coming years, inching the technology closer to widespread adoption. While domestic companies actively pursue the development of small and large microLED panels, the mid-sized market, with a wider range of applications in premium cars and other areas, might be vulnerable to competition from Taiwanese companies trying to seize it.
According to a recent report by research firm Omdia on July 30, the cost of 10 to 14-inch microLED display panels is projected to plummet to a mere one-fourth of its current level by 2027.
The price range for mid-sized microLED panels, spanning from 10.1 to 14.6 inches, currently stands between US$5,800 and US$10,000 per unit. Furthermore, Omdia has presented price estimates for different mid-sized microLED panels. According to their projections, a 10.1-inch panel is anticipated to cost around US$5,800 (7.41 million won), while a 12.1-inch panel might be priced at US$8,000 and a 14.6-inch panel could reach around US$10,000. These price points are remarkably high, especially for mid-sized display panels used in devices like laptops and tablet PCs.
However, with the surging demand for premium displays, manufacturers are expected to escalate their investments in production, leading to further cost reductions. Omdia forecasts that the prices could drop to US$1,277 for 10.1-inch, US$1,800 for 12.1-inch, and US$2,400 for 14.6-inch panels by 2027. While still relatively higher than organic light-emitting diode (OLED) displays, such price adjustments are likely to stimulate demand in niche applications, including in-vehicle infotainment systems in luxury cars and high-performance laptops.
MicroLED, similar to OLED, is a self-emissive display technology featuring an array of micro-sized LEDs precisely arranged to achieve ultra-high-resolution and image quality. It is highly regarded as the most ideal display due to its lack of burn-in issues, a common drawback of the representative self-emitting display technology OLED. However, challenges remain in terms of miniaturization and high cost.
In spite of being priced in the “hundreds of millions” range, large-sized displays continue to witness a surge in demand, particularly in the premium TV market, while small-sized displays find extensive use in applications such as Extended Reality (XR) and Augmented Reality (AR) devices. In contrast, mid-sized displays have not yet achieved commercialization, with no products readily available in the market. For the same reason, domestic companies like Samsung Display, despite its proactive involvement in microLED development, have shown reluctance in pursuing mid-sized display development. Taiwanese companies have been quick to seize opportunities in the microLED market, taking advantage of the “gap” left by the Korean display industry. Industry insiders assess that Taiwan-based companies, including Innolux -- one of the top five TV panel manufactures in the world -- AU Optronics, and Netronix have secured leading development capabilities in this market.
An industry expert said, “Taiwanese companies, which lack OLED technology expertise, are putting in considerable effort to generate new market opportunities and devise strategies to address the premium market segment. If they can address the issue of high prices, it could potentially open up new avenues in the market.”