LG Display is seeking damages from Apple due to the abrupt cancellation of a microLED project for the Apple Watch, as reported by The Elec. LG had significantly invested in developing microLED technology, including the purchase of 14 U.S. patents from Taiwan's Ultra Display. It also relocated critical equipment and personnel to establish a dedicated production line. These preparations involved considerable expenses, reportedly amounting to hundreds of billions of won.
The cancellation left LG with substantial sunk costs and the challenge of potentially unused infrastructure. The company faces possible financial claims from its partners, who also invested in the project without formal agreements.
Apple's decision to halt the microLED project came after it determined that the economic viability of the technology for the Apple Watch was questionable. Despite the microLED's potential for better screen brightness, color accuracy, and energy efficiency compared to OLED technology, the high production costs and manufacturing complexities made it difficult for Apple to justify its integration into the product lineup. Additionally, the advanced manufacturing process required for microLED displays posed significant logistical and technical hurdles.
The fallout from this decision highlights the intricate balance between technological innovation and economic feasibility that tech companies must navigate. As Apple and LG negotiate compensation, the microLED saga underscores the challenges of pioneering new display technologies in a market driven by cost and performance efficiencies.
