Introduction: Potential Outsourcing of Micro LED Production to AMTC
Yesterday (August 19), reports from South Korean media suggested that Samsung Electronics is considering outsourcing part of its Micro LED display production, with AMTC (Zhaochi) emerging as one of the potential partners.
Cost-Cutting Drives Samsung to Consider Outsourcing Micro LED Production to AMTC
According to industry insiders cited by South Korean media, Samsung is currently evaluating the possibility of outsourcing production, mainly for lower-end Micro LED displays aimed at markets like India and the Middle East. The outsourced portion is expected to account for 20% to 30% of Samsung’s total Micro LED display output.

Samsung’s Micro LED displays are divided into residential and commercial segments. In the home TV market, Samsung sources Micro LED chips from Chinese mainland’s Sanan Optoelectronics and Taiwan’s PlayNitride. Samsung processes these chips by installing them on substrates and completing the transfer and packaging processes internally. For lower-end products, Samsung currently handles most of the Micro LED production in-house, with only a small portion outsourced.
On the technology front, Samsung’s latest residential Micro LED televisions use LTPS TFT (Low-Temperature Polycrystalline Silicon Thin-Film Transistor) technology, while commercial Micro LEDs still employ PCB technology.
Reports indicate that if Samsung outsources the production of commercial Micro LED modules to AMTC and other Micro LED manufacturers, these companies will produce the modules through PCBA (Printed Circuit Board Assembly).
Given the recent advancements in Micro LED module technology at AMTC and similar Chinese manufacturers, Samsung believes there is no significant difference between outsourced production and its own module processing. Outsourcing could even reduce production costs by 5% to 10%.
Aside from cost reductions, South Korean media note that outsourcing lower-end products would allow Samsung to focus more on advanced Micro LED module bonding and seamless assembly processes, with a greater emphasis on semiconductor production. Industry experts highlight that the bonding and seamless assembly of Micro LED modules are the most crucial steps in determining the final product quality, even though different manufacturers share similar supply chains for Micro LED chips.

AMTC and Samsung Aligning for Cost-Effective Micro LED Production
It has long been an open secret that Samsung intends to reduce Micro LED production costs. Earlier reports this year confirmed that Samsung has already initiated its cost-reduction plan, collaborating with relevant partners on the project.
However, this time, the potential partner mentioned by South Korean media is BMTC. AMTC’s LED industry chain includes two subsidiaries: VMTC, which handles COB small-pitch LED displays, and BMTC, which focuses on SMD LED packaging, backlighting, and lighting solutions. If Samsung partners with AMTC for Micro LED production, the likely product would be COB modules from VMTC. Official confirmation is still pending, and the situation remains subject to verification.
Regardless of the accuracy of the reports, AMTC’s strategy aligns closely with Samsung’s goal of reducing costs. At AMTC’s performance briefing earlier this year, the company emphasized its ongoing efforts to reduce COB costs—a direction evident in the increased penetration of COB technology, chip miniaturization, and its virtual pixel technology portfolio.
In the first half of this year, AMTC further increased COB penetration. It also shrunk the size of its Mini LED chips from 3×6 mil to 2×6 mil. In terms of virtual pixel technology, VMTC developed three- and four-lamp solutions, which have already been sold in volume.
In certain applications, virtual pixel technology is considered a promising solution for lowering Micro LED costs. It has attracted around 10 LED manufacturers, including AMTC, to invest in this technology. With further product deployment and positive feedback, the combination of Micro LED displays and virtual pixel technology could achieve cost reductions and quality improvements, accelerating adoption in conference rooms, commercial settings, and more.
The market value of Micro LED chips is expected to reach $580 million by 2028, with a compound annual growth rate of 84% from 2023 to 2028. Key drivers include ongoing investments from companies like Samsung, LG, BOE, and Vistar, as well as the industry’s push to compress costs and reduce chip sizes.
Conclusion
Regarding Samsung’s cost-cutting efforts, it is clear that both external and internal initiatives are gaining momentum. Externally, Samsung is pursuing partnerships with other manufacturers, while internally, it is tackling challenges related to mass transfer technology. Although Samsung currently faces difficulties in promoting Micro LED TVs, the combination of internal innovations and external collaborations suggests that its Micro LED TV business could eventually overcome these hurdles. As global efforts to optimize the Micro LED industry continue, the broader industry may also see accelerated progress.
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