Most companies in the display industry believe that microLED is the leading next-generation display technology, that will be able to replace LCDs and OLEDs in many applications. MicroLEDs offers many advantages – both technical such as higher durability and higher brightness and efficiency, but also in unique production processes and models.
The two leading Taiwanese display makers, AUO and Innolux, have been pushing forward aggressively with their microLED projects. This is mainly due to the fact that both companies do not have any real OLED projects, which means that it is easier for them to develop microLEDs as their next-generation technology. MicroLEDs could provide a way for both AUO and Innolux to “leapfrog” over OLED technology.
Against this backdrop, a potential merger between AUO and Innolux presents an intriguing strategic opportunity. By combining their technological expertise, manufacturing capabilities, and financial resources, a merged entity could potentially accelerate microLED development, and perhaps also receiving meaningful financial support from the Taiwanese government, as such as move could strengthen Taiwan's position in the global display industry.
Note that we have no indications that such a merger is even considered by the two companies, but we feel this is a fascinating topic that should be explored and is supported by several strong arguments.