2024-03-01 03:30:57
Osram (ams OSRAM) announced that an important Micro LED project was unexpectedly canceled and the company has decided to re-evaluate its Micro LED development strategy. Since Osram is cooperating with Apple to introduce Micro LED into Apple Watch Ultra 3, there is speculation that the cancellation of the project may be the failure of the Apple Watch cooperation.
Apple’s first Apple Watch equipped with a Micro LED display was originally scheduled to be launched in 2026, but it was once reported that it would be postponed to 2027 or later due to high costs. However, Osram recently announced the cancellation of the Micro LED project, which undoubtedly sent a shock bomb to the industry and cast a shadow over the introduction of Micro LED technology into watches or other devices.
Osram said that after preliminary assessment, the company expects to make asset impairments of 600-900 million euros on Micro LED-related assets in the first quarter of 2024, and will re-evaluate the Micro LED strategy and adjust the medium-term structural revenue growth target to 6% to 8%. %, and are also in discussions with relevant customers.
Osram CEO Aldo Kamper said in a conference call that the customer canceled this project, which is very important to the company, involving Micro LED projects that can be used in smart watch displays.
Industry insiders revealed that Osram plays a key role in the Apple smart watch project and is responsible for the production of vertical dies. The cancellation of the project will have a profound impact on industry trends. However, the Apple case has not been cancelled, because downstream there is LGD (LG Display) for backplanes and modules. Apple should not have given up discussing cooperation with other chip manufacturers. However, the end of the Osram project does leave a big question mark on whether the case will be extended in the future.
Apple Car, Micro LED watch,aspiration AI？
Apple has just recently canceled the development of Apple Car, and now it is reported that it has canceled its cooperation with Osram. Industry insiders believe that it is likely that the AI wave has brought great operating pressure to Apple. They speculate that Apple’s goal this year is to bring internal development resources, manpower, and funds back to AI. In related fields, projects that slow down other hardware upgrades, such as cars and watches, may be delayed or even abandoned, which also makes the outside world view the matter conservatively.
Industry insiders also believe that the sudden suspension of cooperation between Apple and Osram may mean that the smart watch case is unlikely to continue. Apple’s Micro LED technology is not only introduced into a single product, but if development is delayed, it means that the extended product production schedule will be delayed, which may make the introduction of Micro LED into watches unknown. “When the partnership between Apple and Micro LED is postponed, everyone is concerned about the technology. The degree may also decrease.”
The Micro LED watch project may not necessarily be cancelled. Are there still opportunities for Taiwanese and Korean factories?
TrendForce, a research organization, said that Micro LED mainly has four major applications, namely large-scale, wearable, automotive, and near-eye displays. The leader in large-scale displays is Samsung. The market is currently looking forward to Micro LED smart watches. AUO also continues to work on Micro LED watches, but without the synchronization brand drive, the overall volume of Micro LED watches will be lower than that of other brands, and manufacturers’ willingness to develop will be reduced.
At present, Apple has not given up discussing cooperation with other chip manufacturers, which means that Micro LED watches may continue, and Taiwan and South Korea still have corresponding supply chains to support it. TrendForce pointed out that Fucai Jingdian has experience in cooperating with Apple in the past, and both Nitron and Nitron are the world’s leading manufacturers of Micro LED. Nitron belongs to the AUO Group and can provide die and backplane transfer technology for Micro LED watches.
However, from now on, the termination of the cooperation between Apple and Osram may also prompt other manufacturers to consider the risks of new cooperation with Apple. In addition to having to invest a large amount of money in the initial stage, once the cooperation is carried out, Apple will also actively look for a second supplier. , are all aspects that need careful consideration.
Osram CEO Aldo Kamper admitted in a conference call that he was “still shocked”, but the company now has to re-evaluate the future of the new plant in Malaysia. Chief Financial Officer Rainer Irle revealed that it has discussed how to sell the plant.
(Source of the first picture: Science and Technology News)
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