Overview of AUO’s Ambitious Plans
AUO is constructing the world’s most advanced 4.5-generation Micro LED production line, set to be completed in October this year, aiming to lead the global Micro LED market. This production line is scheduled to enter mass production in 2025. Following the successful mass production of Micro LED smartwatches at the end of 2023, the company is now focused on expanding its capabilities for larger displays and advanced applications.
Initial Production Line Success
AUO’s Chief Technology Officer, Liao Wei-lun, explained that the company initially utilized a smaller production line to manufacture the world’s first 1.39-inch Micro LED smartwatch display. This production line simultaneously produced samples and commercial products. In contrast, the new 4.5-generation line will concentrate solely on mass production, marking a significant step toward a new generation of Micro LED technology.

Transitioning to Advanced Production Capabilities
Liao emphasized that with the launch of the new production line, the backplane size will increase, and the critical processes for Micro LED transmission will transition to this larger line. Equipment installation for the 4.5-generation line has already begun, and is expected to be completed in October, followed by trial production. Samples from the 4.5-generation line will be sent to clients, with full-scale mass production planned to begin in 2025.
Diverse Product Applications
AUO plans to utilize this advanced production line for various products, including smartwatches, large-screen TVs, and transparent displays. Notably, there are high expectations for applying this technology to automotive displays, with the first batch of automotive-related products projected to roll out on the 4.5-generation line in 2026.
Enhancing Production Efficiency
As the 4.5-generation Micro LED production line begins operations, AUO is committed to enhancing production efficiency while expanding the size of display modules. A fully integrated production process, encompassing all stages from chip-on-chip (COC) materials to transmission and system assembly, will help improve yield rates and expedite the introduction of new products. This streamlined process will also reduce costs by eliminating the need for external testing and transportation.
Launching the Giant Micro LED Panel
A significant highlight of the new production line is AUO’s plan to manufacture a giant 41.6-inch Micro LED panel, currently the largest single active matrix Micro LED panel in the world. For instance, creating a 127-inch display requires 100 12.7-inch panels, while the new 41.6-inch panel will reduce this number to just 8, greatly enhancing assembly efficiency. Furthermore, larger panels will require fewer driving integrated circuits, further lowering costs.
Overcoming Challenges and Broadening Applications
Liao stressed that Micro LED technology combines the best features of OLED and LCD technologies while overcoming their limitations, enabling broader applications. Micro LED will not replace OLED or LCD but will open new possibilities for various applications. He anticipates that in the next two to three years, Micro LED will see expanded usage in home theater systems, automotive displays, and wearables like smartwatches and AR devices. AUO is also dedicated to advancing Micro LED technology, including the development of stretchable displays and heterogeneous integration technologies.
Addressing Cost Challenges
However, reducing costs remains one of the key challenges. Liao explained that AUO is addressing this issue through chip miniaturization and improved transmission technologies. The company is collaborating with partners such as Epistar and PlayNitride to further shrink LED chip sizes and reduce unit costs. As transmission technologies improve, yield rates will also increase, necessitating more equipment to keep pace with these advancements.
A Shift to Commercial Applications
Liao emphasized that Micro LED is no longer just a laboratory project; it has transitioned into various commercial applications. To ensure success in this competitive market, AUO will continue to closely collaborate with partners in the Micro LED ecosystem to develop cutting-edge products with significant market potential.
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