Is Garmin’s AU Optronics (AUO) MicroLED display in production now?

AU Optronics (AUO) is one of a small group of microLED display manufacturers likely to dominate the wearables market over the next three years. In April 2023, it converted its LCD 5A fab in Taiwan’s Longtan District into a microLED production line for wearable, automotive, TVs, and signage end-use displays.

Due to the low number of pixels required by a small display, wearables will likely be one of the first formats to adopt microLED at scale. Volume production at AUO is thought to be in progress or imminent, i.e., Q4.2024 – Q1.2025.

Let’s examine who will be buying it. It could be Garmin.

Cost Pressures

The cost of existing AMOLED wearable displays is $10-$30 but is likely over $100 for a microLED equivalent. That’s why microLED technology can’t appear in a $400 Apple Watch until prices fall but a $1000 Garmin Fenix 8, $1700 Garmin Marq or $2000 Tag Heuer Connected can accommodate the additional $70 cost without a material shift in the retail price. Maybe a $800 Apple Watch Ultra 3 (2025) might accommodate $70 as well?

The Point: microLED will first appear on high-value, low-volume wearables.

Big Benefits

Several years ago, AUO created 338ppi displays, which are only marginally denser than Apple’s existing OLED display. The tech has improved since, with Playnitride claiming resolutions of up to 600ppi on a wearable. Furthermore, this technology can yield 5,000 nits of brightness and 60% transmittance, compared to 3,000 nits on today’s Apple Watch Ultra—well above the 1,000 nits level that is perfectly acceptable and widely used. The display tech is bendable, presumably fairly robust as a result, and works as a bezel-free, edge-to-edge display. It is notably more power efficient.

The Points: microLED technology for wearables exists and has commercially compelling properties

Getting a Handle on Exact Timings

Here are some key timeline events taken from AUO via Microled-info.com

• April 2021, the first demonstration of its Wearable microLED at Touch Taiwan (a 1.39-inch 472×472 display developed jointly with Playnitride)
• February 2023, AUO stated its plan for mass production by the end of 2023 (that deadline passed)
• April 2023, AUO completed the design of its wearable microLED display and commercially launched the 1.39″ round smartwatch display.
• Q2/Q3.2024 – AUO Investor conference calls have references to the start of wearable production.

AUO’s Competitors

Companies other than AUO (Taiwan) have demonstrated microLED wearable prototypes – including Tianma (China), Samsung (Korea), PlayNitride & Innolux (Taiwan), and ams-Osram (Germany, Apple’s cancelled contract).

Broadly, I would assume that Tianma will be guided towards supplying Chinese wearable companies (Amazfit, Coros, Huawei), Samsung towards its own and Google’s products (Galaxy, Pixel), and Garmin most likely to deal with one of the Taiwanese operations (AUO, Innolux or PlayNitride).

Remember industry insiders believe that AUO MicroLED displays are already in production!

Which Company Product Lines will adopt microLED

As we’ve said earlier, Garmin is ideally placed to include microLED on MARQ and Fenix. Venu would seem a good fit but its price point is probably too low. I think we can also exclude MARQ due to low production volume and the fact that it never leads to the adoption of components new to Garmin. So the first adopter has to be Fenix. Of course, we’ve already seen the Garmin Fenix microLED leak so I feel 100% confident saying that!

It’s worth noting that Garmin has also signed a microLED deal with Vuzix but that is almost certainly for a new generation of near-view Varia products.

Apple did not release a Watch Ultra 3 this year and there must be an outside chance we will see one in 2025. The high price and relatively low volume make it a perfect fit for microLED.

I know that Coros is looking at MicroLED and Apex 3 would be a good call for using Tianma tech in the 2025-26 time horizon.

Suunto would be an outside bet to also use Tianma as it is now Chinese-owned.

I can’t see Polar getting involved with MicroLED at this stage (I think another tech avenue is more likely which I might cover another time)

TAG Heuer was reported to be releasing an AUO-bassed microLED watch in 2024, now widely understood to be headed for 2025.

Volumes

My guess for production volumes for TAG Heuer Connected 3 and Fenix 8 MicroLED would be in the region of 50,000 units. I’m currently trying to find out what AUO’s production capacity is. this should then give us an idea of when Garmin might get deliveries of displays.

Conclusions

We know that

• Garmin (Taiwan) is at a relatively advanced stage with its Fenix microLED (image above)
• Tag Heuer is at an advanced stage with its Connected microLED smartwatch
• AUO (Taiwan) is already producing wearable microLED displays (or about to start)