Japan Markets ViewFocusing on MicroLEDs as the Next Generation Displays

High-definition organic EL displays are becoming more popular at present. Manufacturers are rushing to increase their production facilities, partly due to the growing shipments of high-performance smartphones and large-screen TVs. Behind this is technological innovation and the evolution of video content. However, the industry is now focusing on “microLED” displays, which use minute light-emitting diodes (LEDs) to display images, as the next generation of organic EL displays.

 

■ What is microLED?
Sony Group (6758) made headlines in July when it announced the Crystal LED series, the world’s first microLED display in ultra-large size for professional use. The product has its strength in immersive and realistic video expression with overwhelming reality through high contrast and high definition display. In January 2021, Sony unveiled the Crystal LED displays at the Consumer Electronic Show (CES) 2021, the world’s largest electronics trade show held online, and they became a hot topic.

 

MicroLEDs have a structure consisting of micrometer (µm, 1/1000th of a millimeter) sized, self-emitting LEDs laid out on a flat surface. Compared to liquid crystals (LCDs) and organic EL, which display light from a luminescent material through a filter, microLEDs have higher resolution, higher brightness, and faster response time, which takes for the colors on the screen to change. In addition, like organic EL displays, they do not use a backlight, so they consume less power and have a wider viewing angle.

 

Taking advantage of these characteristics, they are expected to be used in large monitors, wearable devices, virtual reality (VR) headset displays, smart glasses, etc. The fast response time indicates a high affinity for VR devices, where VR sickness is a bottleneck.

 

GaN (gallium nitride), a compound semiconductor, is used for microLEDs. GaN can control light from ultraviolet to blue by adjusting its constituent elements, and is used as a material for blue LEDs. In addition, white LEDs based on blue light are widely used for lighting with high efficiency, low power consumption, and long life.

 

MicroLED displays are difficult to manufacture and mass-produce at present, and it will take time for them to become widespread due to their high cost. However, driven by the evolution of content and technological innovation, the demand for VR, augmented reality (AR), and wearable devices is expected to keep growing. We will continue to watch for news on technological development.

 

■ MicroLED-related stocks
Sharp (6753) continues to invest in R&D for advanced LCD and organic EL display technologies. In 2017, the company launched a joint venture with eLux, Inc., a U.S. company engaged in R&D on improving the manufacturing efficiency of microLED displays. At the International Display Workshop (IDW) 2020, an international conference on display technology held in December 2020, a research paper on the results of microLED display development was awarded the Best Paper Award following 2019.

 

Ulvac (6728), a manufacturer of displays and semiconductor manufacturing equipment utilizing vacuum technology, has a high market share in manufacturing equipment for silicon carbide (SiC), a compound semiconductor, and is also focusing on developing low-power consumption GaN. Orders for display manufacturing equipment are increasing, driven by the full-scale adoption of organic EL displays, and the development of film forming and processing equipment for microLED displays is also progressing.

 

Samco (6387), a semiconductor manufacturing equipment manufacturer with strengths in thin-film technology, specializes in manufacturing equipment for compound semiconductors and LEDs, which are niche fields, and the environment for orders is improving at present.

 

 

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