The Next Frontier in Display Technology: Current Status and Future Outlook of Micro-LED

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On 04/17/2025

Micro Light-Emitting Diodes (MicroLEDs) offer excellent stability, making them the best current option for high-brightness display applications. With advantages such as high contrast, ultra-fast response time, wide operating temperature range, low power consumption, and wide viewing angles, MicroLED technology is considered one of the most promising next-generation display solutions by both industry and academia. This article reviews the fundamental principles of MicroLED display technology, compares its performance with existing technologies, and explores key technical challenges from the perspectives of materials, devices, system integration, and cost yield. Over the next 3 to 5 years, MicroLED displays are expected to undergo significant technological innovation and breakthroughs in areas such as materials, device fabrication, and integration, driving the future growth of the display industry. This also represents a major scientific and technological revolution in which China has the potential to lead global innovation. The article recommends encouraging innovation through collaboration among academia, research institutions, and industry to address critical challenges and guide the market according to both technological and commercial development trends.

Display technology transforms information into visual patterns and presents it through output devices. Since the invention of the cathode-ray tube (CRT) in 1897 and its commercialization in 1922, followed by the emergence of color CRTs in 1954 which became the mainstream, the field has continued to evolve—culminating in the replacement of CRTs by liquid crystal display (LCD) technology around the year 2000. LCD remains the most mature and well-established mainstream display technology today, with a fully developed industrial chain and widespread adoption across various electronic devices. However, LCDs rely on backlight modules as liquid crystals themselves do not emit light. This results in significant brightness loss, low electro-optical conversion efficiency, high energy consumption, and relatively slow response times—typically in the millisecond range—causing motion blur during fast-moving visuals.

To address these issues, researchers have been exploring active self-emissive technologies, among which Organic Light-Emitting Diodes (OLEDs) and MicroLEDs are leading contenders. OLED technology has moved from the lab to the market but still faces challenges related to limited brightness and shorter lifespan. In contrast, MicroLEDs, which use inorganic compound semiconductor materials, offer exceptional stability and much longer lifespans compared to OLEDs. They can achieve peak brightness levels between 1,000,000 to 10,000,000 cd/m², making them the top choice for high-brightness display applications (Figure 1).

Image Source: “Micro-LED Technology and Market Report” by Yole Development
Figure 1: Illustration of Main Application Areas for Micro-LEDs

Table of Contents

1. Overview of Micro-LED Display Technology

1.1 Principles of Micro-LED Displays

Micro-LED technology creates images by independently controlling microscopic LED pixels through driving circuits. Each pixel unit consists of red, green, and blue (RGB) Micro-LED chips to achieve full-color rendering. The basic structure of Micro-LED chips resembles that of conventional lighting LEDs, comprising an n-type semiconductor layer, active quantum well region, and p-type semiconductor layer. There are two main approaches to achieve full-color displays: using discrete RGB chips or utilizing color conversion layers.

Micro LED Structure Diagram

1.2 Comparison with LCD and OLED Technologies

Ambient Contrast Ratio: Micro-LEDs outperform both OLED and LCD in various lighting conditions, maintaining the highest ambient contrast. OLED contrast drops sharply under bright ambient light.
Response Time: Micro-LED and OLED offer pixel response times significantly faster than frame intervals, making them ideal for dynamic content. LCDs, with optimized designs, can achieve comparable response speeds.
Color Gamut: Micro-LEDs using RGB chips cover approximately 80% of the Rec.2020 color gamut. LCDs with quantum dot enhancement can reach around 84%, while OLEDs using resonant cavity designs may achieve up to 90%.
Efficiency and Power Consumption: OLEDs currently have slightly higher luminous efficiency than Micro-LEDs. However, as Micro-LED chip sizes decrease, efficiency tends to drop, posing a power challenge.
Cost: LCD remains the most cost-effective display solution. OLED has become reasonably priced due to mature production. In contrast, Micro-LED is still in the early commercial phase, with high costs primarily driven by low yield in mass transfer processes.

1.3 Application Scenarios and Pixel Density Requirements

Micro-LED pixel sizes vary depending on the application. For augmented reality (AR) glasses, viewed at 1–3 cm, pixel densities need to reach 2,910–8,731 PPI with a pixel pitch of 3–8 μm. Smartwatches and smartphones, typically viewed at 20–30 cm, require 291–437 PPI with 58–87 μm pixel pitch.

1.4 Key Manufacturing Processes

Micro-LED manufacturing spans the entire display supply chain, including epitaxial growth of LED materials, device fabrication, and integration with backplane drivers. This complex process involves numerous precision steps to ensure functionality and uniformity.

2. Key Challenges and Current Status

2.1 Technical Development Milestones

The concept of Micro-LEDs was introduced in 2000, initially focusing on GaN-based blue LEDs for solid-state lighting. In 2001, a 10×10 passive matrix GaN Micro-LED array was developed. By 2011, a 640×480 active matrix Micro-LED panel driven by CMOS was achieved. In 2012, Sony unveiled the first large-screen Micro-LED TV, marking a turning point for the industry.

2.2 Core Technical Challenges

Materials: Micro-LEDs are sensitive to defects introduced during heteroepitaxial growth. Uniform wavelength distribution across the wafer and efficient red-chip performance (especially using III-nitride materials) remain key issues.
Devices: Due to the “size effect,” LED efficiency decreases with smaller chip dimensions, mainly due to sidewall damage from dry etching processes.
Integration: Mass transfer challenges include chip breakage, poor adhesion, and bonding defects. Wafer-level bonding faces thermal mismatch and mechanical stress problems. RGB integration using phosphide chips risks fragility, while quantum dot color conversion faces patterning and crosstalk issues.
Cost and Yield: The complexity of Micro-LED manufacturing, particularly in integration, results in low yields and high costs. Improving transfer and bonding accuracy is essential for commercialization.

2.3 Research and Industry Progress

Global institutions and enterprises are actively addressing these challenges. Efforts to improve red-emission GaN-based chips have extended wavelengths to over 620 nm, though with limited efficiency and wide spectral bandwidth. Dry etching and wet etching methods are being refined to minimize device damage. On the integration side, researchers are exploring 2D material transistors and monolithic CMOS integration. Commercially, Micro-LED displays are expected to first appear in wearables and automotive displays, followed by AR/VR near-eye devices.

3. Future Trends and Market Outlook

3.1 Technological Innovation in the Next 3–5 Years

Key innovation areas include:

Boosting red-chip efficiency.
Scaling wafer sizes while enhancing material uniformity and reducing defects.
Refining fabrication steps like low-damage etching, sidewall passivation, and damage recovery.
Advancing mass transfer technologies and monolithic CMOS integration, especially for AR/VR devices.
Transitioning RGB chip structures from horizontal to vertical integration for improved performance.

3.2 Market Landscape and Opportunities

Micro-LEDs have the potential to replace existing technologies across a variety of display segments. China currently possesses a complete Micro-LED industry chain, including upstream chip fabrication and mass transfer capabilities. Midstream panel technologies focus on TFT and CMOS drivers, while downstream applications such as wearables, AR/VR headsets, and automotive displays show strong growth potential.

4. Strategic Recommendations for Industry Development

As a strategic pillar of China’s economy, the display industry stands to benefit from breakthroughs in Micro-LED technology. To ensure long-term success:

Policy Support: Governments should foster innovation, support SMEs, and promote collaboration between academia and industry.
Guided Development: Encourage rational investment and avoid overcapacity by adhering to both technical feasibility and market demand.
Global Competitiveness: Secure international patents, participate in standards development, and enhance global competitiveness in both technology and product design.

Despite current challenges, global collaboration among researchers and engineers is expected to unlock commercial success, particularly in emerging markets like AR. With the introduction of next-gen near-eye displays, Micro-LED technology is poised for explosive growth in the coming years.