In February, Apple halted its plans to apply Micro LED technology in its Apple Watch Ultra, resulting in both direct and indirect negative impacts on related equipment suppliers.
Previously, transfer equipment supplier K&S announced the cancellation of its Project W. The reason was the withdrawal of a strategic customer from the related project. K&S had invested a significant amount of money in the Apple project, leading media to speculate that the cancellation of Project W was likely related to the Apple Watch project. According to the latest financial report, K&S suffered a loss of $105.5 million due to the cancellation of Project W.
Subsequently, Rohinni, a transfer equipment supplier focused on Micro/Mini LED technology, also filed for bankruptcy. The primary reason was a 96% drop in Rohinni’s revenue in 2023, along with debts exceeding $5 million. Apple’s suspension of Micro LED technology applications may have impacted investor willingness to fund Rohinni, resulting in the company failing to secure new funding before filing for bankruptcy.
Undeniably, the cancellation of Apple’s project has increasingly affected some Micro LED equipment companies. However, many other equipment suppliers have not been disheartened. Looking at the industry chain development trends, Micro LED technology continues to grow, costs are rapidly declining, application markets are becoming clearer, and downstream panel manufacturers are still advancing their layouts. The upward trend in the industry remains unchanged, with large-scale production of Micro LED devices approaching, prompting equipment suppliers to continuously prepare for market demand.
April Brings Good News for Micro LED Equipment Suppliers
In April, LED-related equipment suppliers reported frequent news about Micro LED-related collaborations, financing, and new technologies. As equipment suppliers remain optimistic about Micro LED development, market demand for Micro LED equipment continues to rise:
Aixtron‘s Micro LED Equipment Performance Up in Q1
Recently, MOCVD manufacturer Aixtron announced its Q1 performance, with company revenue and profit significantly exceeding the same period in 2023. Micro LED business showed outstanding performance, driven by downstream customers’ continued development and commercialization of Micro LED technology. Aixtron’s LED equipment business, including Micro LED applications, achieved revenue of €19.6 million, an increase of 184% compared to the same period last year, accounting for 37% of Aixtron’s equipment order volume.
PlayNitride Optimistic About Micro LED Development; Transfer Equipment to Account for 10%~20% of Revenue
Micro LED manufacturer PlayNitride is adding new Micro LED transfer equipment sales projects this year, with shipments expected to begin in the second half of the year. This is projected to account for about 10% to 20% of the company’s total revenue. PlayNitride is optimistic about the Micro LED industry’s development and reports that many downstream customers are preparing for shipments. Television is a major market for Micro LED technology, and head-mounted displays and smart watches are also preparing for shipments this year, driving the development of the Micro LED industry. The company expects revenue to grow significantly this year, maintaining recent growth trends, with losses expected to continue improving.
Toray Engineering’s Micro LED Equipment Partnerships
Japan’s Toray Engineering, a subsidiary of the Toray Group, specializes in providing advanced engineering solutions and services. The company possesses cutting-edge mounting and inspection technologies and processes, including visual inspection, laser transfer, mounting, and repair equipment. In April, Toray Engineering established partnerships with Japan’s semiconductor test equipment supplier Advantest Group and Canadian Micro LED technology developer VueReal to enhance the efficient production of Micro/Mini LED displays and promote the global application of Micro LED displays and micro-semiconductor products.
TEYITECH Secures Nearly 100 Million Yuan in Financing
On April 28, TEYITECH Co., Ltd. completed a nearly 100 million yuan Series C financing round, which will be used for new product development and iteration. Established in 2014, TEYITECH is a professional manufacturer of automation production testing equipment for the flat-panel display industry, with applications covering OLED, LCD, Micro/Mini LED, Micro OLED, and semiconductors.
SIDTEK Invests in SiTan Tech to Co-Develop Micro LED Technology
On April 8, machine vision inspection company SIDTEK announced a 36 million yuan investment in domestic Micro LED startup SiTan Tech. SIDTEK plans to jointly develop related technologies with SiTan Tech and introduce its machine vision inspection equipment into the Micro LED field to meet industry inspection needs and achieve complementary advantages and collaborative development across the industry chain.
Singulus Technologies Introduces Modular High-Vacuum Sputtering System for Micro LED Production
Germany’s Singulus Technologies focuses on developing and assembling innovative machines and systems for efficient thin-film coating and surface treatment processes, with products used in photovoltaics, semiconductors, medical technology, packaging, glass, automotive, and batteries. On April 17, Singulus Technologies announced the launch of the TIMARIS STM modular high-vacuum sputtering system for Micro LED production. The first TIMARIS STM system product has been completed and delivered. The TIMARIS platform features a modular structure, accommodating various process and additional modules to meet the requirements of a wide range of semiconductor applications.
Domestic Equipment Suppliers Actively Positioning in Micro LED Sector
In April, the equipment sector saw abundant dynamics. Aside from manufacturers searching for more Micro LED equipment application opportunities, continued optimism about the future development of Micro LED technology was also a key reason for the active dynamics among suppliers. Additionally, the gradual emergence of downstream demand has provided equipment suppliers with confidence in continuing to develop Micro LED business.
Especially among domestic equipment suppliers, with the approaching large-scale production of Micro LED, several domestic equipment companies are actively advancing their Micro LED equipment-related business deployments:
Seichitech, a provider of detection equipment and system solutions, was listed on the STAR Market in July last year, raising 600 million yuan to invest in “new-generation display device detection equipment research and development projects” and “new-generation semiconductor storage device testing equipment research and development projects.” The “new-generation display device detection equipment research and development project” involves research and development of various Micro LED-related detection technologies, including display defect detection, AOI detection optical systems and software, Gamma correction, and Demura compensation algorithms. In recent business developments, Precision Smart Technology has continued to secure orders for Micro LED-related detection equipment.
In January last year, high-end equipment manufacturer Maxwell Co., Ltd. began construction of the “Maxwell Semiconductor Equipment and Materials Project” in Zhuhai. The project plans to establish a base for the research and production of semiconductor laser equipment, including equipment development and manufacturing for semiconductors, micro-displays, and PCBs. Earlier this year, Maxwell Co., Ltd. revealed that Mini/Micro LED-related equipment has been delivered to several LED and display companies.
Jintuo Co., Ltd., a specialized equipment supplier, offers equipment applicable to TFT-LCD, AMOLED, and Mini/Micro LED manufacturing. Its electronic assembly equipment is used for soldering and inspecting Mini/Micro LEDs, and optoelectronic display equipment is currently used in Mini LED manufacturing. Semiconductor-specific equipment is applied in Mini/Micro LED packaging processes. Earlier this year, Jintuo Co., Ltd. added Micro LED concepts and is expected to increase its Micro LED-related equipment business development.
Laser intelligent equipment manufacturer HYMSON achieved sales of prototype Micro LED large-scale transfer and soldering equipment in 2023, with the Micro LED large-scale transfer equipment’s yield reaching 99.99%. According to recent updates, HYMSON’s Micro LED large-scale transfer equipment is in use with clients and has entered the small-batch testing stage, with related business work progressing in an orderly manner.
DelphiLaser’s Micro LED laser stripping and repair equipment has been delivered to clients and generated revenue, with orders for Micro LED laser large-scale transfer equipment received from major customers.
In November last year, DelphiLaser announced plans to acquire 100% of Corning Laser’s equity and some assets for no more than 15 million euros. Corning Laser has technologies in laser glass cutting and drilling, with core technologies accumulated in AR, Micro LED displays, and wafer processing. In early January this year, DelphiLaser announced plans to build a new R&D center and laser industry base, investing about 450 million yuan in the production of lasers, optical inspection systems, optical modules, and smart equipment for new energy hydrogen.
AMEC is continuously developing MOCVD equipment for GaN, SiC power devices, and Micro LED devices. Development of MOCVD equipment for Micro LED applications has progressed smoothly, with preliminary laboratory results showing excellent wavelength uniformity. In the latest quarterly report, AMEC revealed that its equipment products are undergoing validation testing with clients.
Taiwanese equipment suppliers are also actively preparing for Micro LED business development. Recent media reports indicate that semiconductor equipment supplier Fanxuan has launched self-made coating development series and microlithography imprinting series equipment for the Micro LED market, which have been adopted by major Micro LED manufacturers. Semiconductor equipment enterprise Dongjie is comprehensively laying out Micro LED production lines, with products including laser large-scale transfer equipment, lighting repair equipment, laser large-scale repair equipment, and high-precision module splicing machines. Dongjie is expected to achieve high growth in relevant equipment this year. Optical inspection semiconductor equipment supplier Weihua Technology has developed the JadeML solution for Micro LED wafer large-scale PL and non-contact large-scale leakage detection.
Summary
The cancellation of Apple’s project has slightly dampened the development of Micro LED, but the industry has not chosen to “lie flat.” From the overall industry development perspective, industry chain enterprises continue to invest in Micro LED technology, so equipment suppliers are also not “lying flat.”
At the 2024 TrendForce New Display Industry Forum, TrendForce’s Senior Research Vice President Qiu Yubin stated that, apart from Apple, the industry is still working on reducing Micro LED costs, moving from the current 34×58 micron chips to sizes as small as 20×40 microns or even 15×30 microns. Display panel manufacturers are also investing resources in developing Micro LED products, with companies such as Samsung, LG, Sony, BOE, TCL, HKC, and Innolux continuing to explore the large-scale display market for Micro LED.
As the industry continues to deepen its Micro LED technology work and product promotion, demand for Micro LED equipment will continue to grow. The investment, cooperation, and new technology development dynamics in Micro LED equipment are expected to remain active.
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