The augmented reality (AR) and virtual reality (VR) device market, after experiencing a period of stagnation, is seeing renewed growth momentum with the development of AI technology. South Korean microdisplay component makers are accelerating their entry into the AI glasses market.
According to South Korean media outlet Sisajournal, RaonTech and Sapien Semiconductors recently signed backplane component supply contracts with global suppliers of Micro LED for AI glasses (LEDoS). Microdisplays, which can achieve thousands of pixels per inch (ppi), require precise driving circuits and thus use silicon wafers instead of traditional glass substrates.
RaonTech's announcement indicated that it has signed a US$2.04 million contract with a Taiwanese display manufacturer to supply micro LED backplane wafers. This contract, representing 26.2% of RaonTech's revenue, will run from July 18, 2024, to April 30, 2025. The supplied micro LED backplanes will be used in dedicated solutions for ultra-light AI smart glasses optical modules.
RaonTech simultaneously masters technologies such as LCoS, OLEDoS, and LEDoS. Earlier, in January 2024, RaonTech announced a strategic agreement with PlayNitride to supply micro LED backplane wafers, with the order valued at US$860,000. Whether the new client is also PlayNitride still remains to be seen.
Sapien Semiconductors possesses memory-in-pixel (MiP) technology, which can reduce power consumption by up to 75% and shrink pixel size by 38%. This technology is the foundation for the company to be an industry leader in developing high-performance display driver ICs (DDIs) for AR glasses.
Recently, Sapien Semiconductors announced that it had signed a KRW3.9 billion (approx. US$2.82 million) R&D and supply contract with a European microdisplay module supplier for complementary metal-oxide-semiconductor (CMOS) backplanes. This contract, amounting to 123% of Sapien's revenue, will be used for high-end AR smart glasses with AI capabilities. In June 2024, Sapien signed a KRW4.4 billion contract with a micro LED company in the Asia-Pacific region to supply CMOS backplanes.
Market research firm Global Information noted that the AR and VR smart glasses market is projected to grow from approximately US$15.93 billion in 2023 to US$34.62 billion by 2028, driven by AI. Omdia also predicts that the shipment volume of micro LEDs for AR, VR, and MR will increase from 300,000 units in 2024 to 27.6 million units by 2030.
