Apple looks to cut out Asian screen makers, kicks off MicroLED production

Tech giant Apple is said to be developing its own MicroLED device displays, making a limited number of the screens available for testing as part of a move that could seriously hurt Asian display makers whose primary business is the supply of these screens to the US smartphone manufacturer.

MicroLED, a new display technology that has already caught the eye of multiple big-name tech firms, are thinner, brighter, use less power and are more durable than the standard organic light-emitting-diode displays found in the vast majority of smart devices.

However, the new technology is so far unproven, far more difficult to produce than OLED displays and, at times, difficult to use, according to some analysts.

Apple has been developing its MicroLED screens under the radar at a secret plant in California as part of a project overseen by Lynn Youngs, the Nasdaq-listed firm's head of iPhone and Apple Watch screen technology, according to Bloomberg, citing people familiar with the matter.

The group was said to be looking to use its new technology in its wearable device first, with the source stating that it was highly unlikely to reach the likes of an iPhone handset for at least three to five years.

Shares in major Asian display makers such as Sharp Corp, Japan Display and LG Display, all ended the day between 1.6% and 2.4% lower.

Other tech firm's looking at MicroLED technology include Taiwan's Hon Hai Precision Industry, Apple's main contract manufacturer, which acquired North American MicroLED display startup eLux in 2017, and industry giant Sony, which started selling large display systems using the technology for corporate users over a year ago.

As of 1440 GMT, Apple shares had dialled back 0.97% to $176.30 each.