Huaxi Securities: Shows deep binding with display and optical solutions, waiting for full-color Micro LED mass production

According to the Zhitong Finance APP, Huaxi Securities has released a research report stating that the display solutions currently launched in the market include LCOS, DLP, LBS, Micro OLED, and Micro LED solutions, among which Micro LED is considered the ultimate solution for AR near-eye display applications. With the integration of AI models and the active entry of major manufacturers, AR glasses are expected to achieve accelerated iteration and volume production, with significant potential for growth. As one of the core components affecting its display performance, Micro LED is expected to benefit greatly. The main points of Huaxi Securities are as follows: Micro LED becomes the ultimate partner for waveguide, achieving a 1+1>2 effect The display solutions currently launched in the market include LCOS, DLP, LBS, Micro OLED, and Micro LED solutions. Due to the different brightness requirements of various optical solutions, the combination of suitable optical solutions and micro-display solutions can achieve a 1+1>2 effect. Currently, the "Micro OLED + BirdBath" solution has become a rapidly deployable solution that balances cost and display performance, accelerating the rollout of consumer-grade AR glasses. However, due to the extremely low optical efficiency of the mainstream optical solution in the future—waveguide technology—Micro OLED is difficult to achieve normal eye brightness, while Micro LED has advantages in brightness, contrast, refresh rate, power consumption, and size, making it compatible with waveguide technology. It is regarded as the ultimate solution for AR near-eye display applications. Micro LED: A hexagonal warrior of display technology, with outstanding advantages in various dimensions Micro LED refers to the miniaturization and matrix technology of LED. It involves the thin-film, miniaturization, and array design of LED structures, reducing pixel units to below 100um (P0.1), while achieving individual addressing and driving of each pixel. Micro LED not only possesses the high resolution, high PPI, high refresh rate, and high contrast characteristics of Micro OLED; it also inherits the properties of inorganic LEDs, further enhancing response time, power consumption, and color gamut, effectively improving the low brightness and short lifespan issues of Micro OLED. It performs excellently in various dimensions. Technical challenges: Full-color display as the core difficulty, urgent need for industrial breakthroughs High pixel density Micro LED micro-displays typically adopt a single-chip integration process route using semiconductor technology. This technology not only employs semiconductor manufacturing processes throughout but also defines the critical pixel size using photolithography, resulting in smaller pixel sizes and smaller pixel spacing. Meanwhile, this technology does not require massive transfer technology for secondary transfer, achieving ultra-high pixel and ultra-high resolution display effects in one go. Overall, the main challenges in the production of Micro LED micro-displays lie in substrate preparation, chip structure, bonding processes, and full-color display. Among these, full-color display is the core difficulty that urgently requires industrial breakthroughs. Currently, Micro LED full-color solutions mainly include color mixing solutions, quantum dot color conversion, three-color stacking, and single-chip direct epitaxy. Among them, the color mixing solution is a relatively mature route, but the module size needs further reduction, while the three-color stacking and single-chip epitaxy solutions have high process difficulties and are still in the laboratory stage Risk Warning AR glasses shipments are below expectations, and the development of new technologies is not meeting expectations, etc