Financial

Last month OTFT developer Smartkem announced that it has partnered with AUO to jointly develop rollable transparent microLED displays, based on Smartkem's OTFT backplane technology. The project will be based on a novel OTFT production process developed at ITRI. 

Smartkem announced today that it was granted $1.1 million from the Innovate UK fund to support this project. This funding is part of the 2024 UK-Taiwan Collaborative R&D Initiative. The funding will be paid over the period of the two-year project, starting in early 2025.

PlayNitride reported its earning results for Q3 2024 - with an increase in revenues to $16.1 million USD (up 49% from Q3 2023). The company reported its first net income, of $1.8 million (up from a loss of $2.7 million in Q3 2023).  For the first nine months of 2024, PlayNitride reported revenues of $32.5 million USD, up from $21.5 million in the first nine months of 2023.

PlayNitride also approved a bond issue, raising $24.6 million USD. The company's stock price has risen shapely in recent months. 

Belgium-based QD developer and MicroLED Association member QustomDot announced that it has raised 5 million Euros at its pre-Series A financing round.

Several investors participated in this recent round, including Noshaq, EIC Fund, Qbic Fund, Venture Capital, PMV and VIGO Venture. 

During the company's recent conference call, AUO said that the company is "making significant progress" in MicroLED technology, transitioning to a 4.5-Gen line. AUO's current microLED production line is referred to as a 1-Gen line, used to produce commercial wearable displays (although we understand yields are very low and production costs are still extremely high). The company hopes its new larger line will improve production efficiency and cost structure.

AUO said that the new production line will enable it to start producing automotive displays, which are expected to launch by 2026 or 2027.

LG Electronics announced a strategic plan to focus on its Business Solutions division, with an aim to double its sales to $7.5 billion by 2030. The division is in charge of businss-to-business (B2B) and signage displays, commercial TVs, IT devices such as laptops and monitors, robots and EV chargers.

LG says that for its commercial and signage displays, it will focus on premium fine-pitch LED displays, which include its microLED Magnit models. Indeed LG says that "MAGNIT Micro LED display will be at the forefront of this expansion".  The company reveals that its annual MAGNIT sales grew almost 2X since introducing them in 2020 (though sales are still likely very low). LG plans to launch its next-generaiton AI-powered microLED TVs by the end of 2024. 

The Netherlands based roll-to-plate nano-imprinting technology developer Morphotonics announced that it has secured its Series B funding round, raising over $10 million from 3M New Growth Ventures, BOM and Innovation Industries. The company expects to add to this round and close it by the end of the year.

Morphotonics provides large-area nanoimprint systems, based on its unique roll-to-plate technology. The company's main markets are 3D displays and AR glasses. The company's technology can also be used as a flexible stamping system for microLED mass transfer.

During the company's recent conference call, AUO said that the company is undergoing a strategic transformation, focusing on mobility solutions, vertical solutions, and the display segment. The company gave several interesting statements regarding its microLED project and investments.

First of all, the company says that microLED is a priority for the company, and it plans to allocate more resources into its microLED projects. AUO says that its microLED technology is 'gaining traction', and that it is producing microLED displays commercially, but it did not detail more. The company believes it is the leader in microLED development.

In the past year, microLED startups have raised over $200 million. As some companies (most notably Aledia and JBD in this case) mature and start to build production capacity, the need for funds grows, and we have indeed seen large investment rounds in these companies.

• Kubos Semiconductors: $2 million (May 2024)
• MICLEDI: $17 million (March 2024)
• Mojo Vision: $21.1 million (October 2023)
• Aledia: $129 million (October 2023)
• Comptek Solutions: $8.6 million (August 2023)
• QNA Technology: $4 million (August 2023)
• JBD: A4 round, estimated at $30-130 million (June 2023)

It is great to see these recent funding successes, which will hopefully lead to increased innovation and also initial production. It should be noted that most (if not all) of these financing rounds have been finalized before Apple made its decision to cancel its main microLED wearable project. We do not see Apple's decision as having a major impact on the long-term viability of microLED technologies or on the industry - but we do know that some investors are now hesitant to invest in this market following Apple's project cancellation. 

According to reports from Korea and Taiwan, both Samsung Display and LG Display have decided to slow down their microLED business plans. The main reasons behind this are the high production costs of microLEDs and high competition which is seen to lead to low profitability. 

Samsung Display will continue to invest in microLED R&D, but has delayed plans to expand production. LG Display has already reduced the size of its microLED R&D teams and is looking into deploying some of its microLED developers into the OLED side of its business.