Domestic Micro OLED Panel Manufacturers Ramp Up Rapidly

In June 2023, Apple officially unveiled its first MR device, the Vision Pro. The device features a built-in display equipped with Micro OLED screens boasting 4K resolution and a pixel density exceeding 3,000 PPI—making the Vision Pro the first product to deliver true dual-eye 8K visuals using Micro OLED technology.

Image source: Apple

Thanks to Apple's MR device, Micro OLED has once again become the industry's focal point in display technology. In fact, with the rapid proliferation of XR devices like VR and AR in recent years, Micro OLED applications in the micro-display sector are steadily expanding. According to an incomplete tally by LEDinside, 12 VR/AR glasses products already incorporated Micro OLED technology in 2023 alone.

On the other hand, Micro LED micro-display applications—known as the "ultimate display technology"—are also growing steadily year by year. In 2023, eight VR/AR products already incorporated Micro LED technology, and in the future, Micro LED is poised to become a strong competitor to Micro OLED in the micro-display sector.

The display industry is optimistic about the future prospects of Micro OLED and Micro LED technologies in the micro-display sector, but currently, the two technologies are experiencing markedly different trajectories in this space. Looking back at their development histories, why has Micro OLED emerged as the rising star in today’s micro-display market? And as these cutting-edge technologies dominate industry discussions, what preparations are domestic manufacturers already making to stay ahead?

Micro OLED: From Military and Camera Applications to VR/AR

Micro OLED, also known as silicon-based OLED, replaces the traditional glass substrate of conventional OLEDs with a single-crystal silicon substrate and relies on organic light-emitting technology to deliver stunning display performance. Unlike conventional OLEDs that use external driving circuits, silicon-based OLEDs leverage CMOS processes to integrate the single-crystal silicon directly into the display’s backplane, enabling driver circuits to be built at the pixel level. As a result, individual pixel sizes are reduced to about 1/10th of their original dimensions, achieving far sharper image quality while significantly optimizing space efficiency.

Compared to OLED, Micro OLED technology offers higher pixel density and resolution, faster response times, and doesn’t require complex packaging techniques. However, Micro OLED still faces challenges such as higher costs and a shorter lifespan compared to LCD and LCOS technologies.

Source: TrendForce by TrendForce

Initially, Micro OLED found applications in rather specialized fields. In the military sector, Micro OLED is used in flight helmets, weapon sighting systems, night vision goggles, head-mounted displays (HMDs), and simulation equipment, among other things. With their compact size, high resolution, and energy efficiency, Micro OLED displays are perfectly suited for the complex, demanding scenarios typical of military environments.

In 2001, the U.S. microdisplay technology company eMagin had already integrated Micro OLED displays into the American F-15E fighter jet. Today, the military sector remains one of the primary application areas for Micro OLED technology.

Camera manufacturing is also one of the first fields where Micro OLED has been widely adopted. As a leading global manufacturer of Micro OLED technology, Sony began R&D on Micro OLED in 2009 and launched its first-generation Micro OLED microdisplay for camera viewfinders in 2011. Since then, Micro OLED has become extensively used in camera viewfinders.

Afterward, Micro OLED technology has also found applications in medical devices, industrial equipment, and other fields. Meanwhile, as the trend of virtual reality continues to gain momentum, Micro OLED applications are gradually shifting toward consumer electronics such as VR/AR glasses.

Currently, the display technologies available in the VR/AR field include Fast LCD, LCOS, Micro LED, and Micro OLED. Compared to other technologies, Micro OLED effectively addresses many of the limitations inherent in previous AR/VR display solutions, perfectly meeting the demands of XR devices for higher pixel density, reduced motion sickness, enhanced contrast, faster response times, and lower power consumption.

In the VR device sector, compared to the Fast LCD technology predominantly used in VR headsets, Micro OLED, with its inherent advantages, delivers a truly immersive experience to users. Today, VR products like Rokid Air, Arpara, and Pimax Crystal Super have already incorporated Micro OLED technology into their designs.

In the AR device sector, Micro OLED has gained widespread adoption due to its high contrast and exceptional pixel density. The Micro OLED + BirdBath solution has emerged as a rapidly deployable option that strikes a balance between cost-effectiveness and display performance. Several leading manufacturers—including Rokid, Raybird, ThirdEye, ViewSonic, Epson, Qualcomm, and Xreal—have already launched split-type AR smart glasses or all-in-one AR devices featuring Micro OLED displays.

TrendForce believes that driven by the demand for AR/VR and other head-mounted devices, the need for ultra-high PPI near-eye displays is increasing—and Micro OLED displays stand out as one of the leading technologies in this space.

Although there aren’t many AR/VR devices currently using Micro OLED displays officially, the technology is poised for gradual expansion as key brand customers begin adopting it. Meanwhile, industry analysts predict that by 2027, the global market for Micro OLED displays in the XR sector will surpass $4 billion.

International manufacturers take the lead, while domestic companies are rapidly catching up.

As the demand for VR/AR device applications rises, the scale of each segment in the Micro OLED industry chain is further expanding.

The Micro OLED industry chain includes upstream raw materials, silicon-based backplanes, assembly components, and manufacturing & testing equipment; midstream Micro OLED panel manufacturers; and downstream various end-use applications. While the number of domestic and international players remains relatively balanced across these industry segments, their levels of development differ significantly.

Especially in the critical micro-OLED display manufacturing segment, Japanese and Korean companies currently hold the majority of the market share. Notably, Japan's Sony dominates the largest portion of the micro-OLED panel market.

Relevant data shows that Sony is currently the largest supplier in the Micro OLED panel market, capturing over 60% of global shipments in 2022. In the VR/AR application sector, Sony’s share of the Micro OLED panel market is even higher, nearing 80%.

Sony's Micro OLED Display Series (Image source: Sony)

On the side of European and American companies, U.S. firms like eMagin and Kopin, as well as Guangxin Technology, and French company MICROOLED, along with Germany’s Fraunhofer FEP—despite having entered the market relatively early—still don’t hold a particularly high share of the global market.

Chinese manufacturers, particularly in the Micro OLED sector, are numerous. Although they entered the market relatively late, they’ve been growing rapidly, with significant progress in capacity expansion over recent years. As a result, domestic Chinese companies are steadily increasing their share of the Micro OLED market—now even surpassing European and American firms in market dominance.

According to incomplete statistics, domestic Micro OLED panel manufacturers include: Visionox, BOE, TCL CSOT, Oleddisplay, DreamVision Electronics, Guanyu Technology, Xitai Technology, Guozhao Optoelectronics, Hongxi Technology, Ruixian Technology, Hupan Optoelectronics, Xinshijia, Yunguang Technology, Huarui Optoelectronics, and Ziyangsheng Optoelectronics, among other companies.

Currently, several manufacturers—including Hefei Shiyaya and BOE—have already achieved mass production of mature Micro OLED displays, while startups like Mengxian Electronics, Hupan Optoelectronics, Guanyu Technology, Guozhao Optoelectronics, and Xinsijia are steadily expanding their production capacities.

Relevant data shows that domestic manufacturers have currently completed acceptance testing of an 8-inch Micro OLED project with a total production capacity of 15.54K/M. Among them, BOE and Dream Display Electronics rank first and second, respectively, with capacities of 6K/M and 5K/M. Additionally, China has already approved a total 12-inch Micro OLED production capacity of 8.8K/M, which includes Visionox’s 6K/M capacity, BOE’s 2K/M, and Hongxi Technology’s 0.8K/M.

Here are the details and progress of domestic manufacturer Micro OLED projects:

The domestic Micro OLED industry has been making significant strides, aiming to further penetrate the VR/AR application market and challenge the dominance of overseas companies like Sony. Currently, China's homegrown Micro OLED technology has already caught the attention of Apple. Back in March of this year, South Korean media reported that Apple is exploring ways to reduce the high price of its Vision Pro headset—specifically by considering suppliers such as SeeYa Technology and BOE for Micro OLED panels. Meanwhile, SeeYa Technology recently revealed that its Micro OLED products have already undergone multiple rounds of sample submissions to Apple. Looking ahead, domestic Micro OLED panel manufacturers are poised to secure a place within Apple's supply chain.

Summary

Although Micro OLED and Micro LED technologies differ by just "one letter," their development trajectories in the VR/AR sector have diverged significantly in recent years. Micro OLED technology has already begun reaping early rewards from large-scale commercial applications, and its market momentum has surged further—driven notably by Apple's Vision Pro. Meanwhile, domestic Chinese companies are rapidly ramping up production capacity, with expectations that future costs could soon rival those of Fast LCD and LCos technologies.

While Micro LED has already found applications among downstream manufacturers, the technology hasn’t yet fully materialized in high-definition, full-color formats. The industry chain still needs to refine key aspects such as technical costs, yield rates, and performance—only then can Micro LED be effectively integrated into the VR/AR sector. Nevertheless, the true potential of this "ultimate display technology" continues to generate excitement and anticipation.

In the future of the VR/AR sector, will Micro OLED maintain its early lead and dominate the market, or will Micro LED catch up later, reshaping the landscape of VR/AR display technology with its unique advantages of ultra-high brightness and contrast? Let’s wait and see.

Source: LEDinside, Irving