𝗔𝗳𝘁𝗲𝗿 𝗮 𝟮𝟬𝟮𝟲 𝗦𝘂𝗿𝗴𝗲, 𝗗𝗶𝘀𝗽𝗹𝗮𝘆 𝗘𝗾𝘂𝗶𝗽𝗺𝗲𝗻𝘁 𝗦𝗽𝗲𝗻𝗱𝗶𝗻𝗴 𝗧𝗼 𝗙𝗮𝗰𝗲 𝗮 𝗦𝘁𝗲𝗲𝗽 𝟮𝟬𝟮𝟳 𝗖𝗼𝗿𝗿𝗲𝗰𝘁𝗶𝗼𝗻 Global display equipment capex is projected to fall 49% YoY in 2027 to $5.5 billion, after a 61% YoY surge in 2026. In 2027, spending on new technology development and supplementary investment will continue, but the absence of another large-scale project on the scale of BOE’s B16 Phase 2 is expected to pull total capex down sharply. 𝗞𝗲𝘆 𝗧𝗮𝗸𝗲𝗮𝘄𝗮𝘆𝘀:   • Sunic System is forecast to become the first South Korean equipment maker to lead the display equipment market by revenue in 2027   • A roughly 3.5x YoY jump in DRAM prices in Q3 2026 is pushing smartphone OEMs to delay or scale back new display technology investments   • @SamsungDisplay and LG Display are slowing or trimming planned Gen 6 smartphone display technology investments as a result 𝗪𝗵𝗼 𝗶𝘀 𝗴𝗮𝗶𝗻𝗶𝗻𝗴 𝗴𝗿𝗼𝘂𝗻𝗱 𝗮𝘀 𝗱𝗶𝘀𝗽𝗹𝗮𝘆 𝗲𝗾𝘂𝗶𝗽𝗺𝗲𝗻𝘁 𝘀𝗽𝗲𝗻𝗱𝗶𝗻𝗴 𝘀𝗵𝗶𝗳𝘁𝘀? 𝗙𝗶𝗻𝗱 𝗼𝘂𝘁 𝗶𝗻 𝗼𝘂𝗿 𝗹𝗮𝘁𝗲𝘀𝘁 𝗮𝗻𝗮𝗹𝘆𝘀𝗶𝘀: 𝗦𝘂𝗯𝘀𝗰𝗿𝗶𝗯𝗶𝗻𝗴 𝗰𝗹𝗶𝗲𝗻𝘁𝘀 𝗰𝗮𝗻 𝗮𝗰𝗰𝗲𝘀𝘀 𝗼𝘂𝗿 𝗹𝗮𝘁𝗲𝘀𝘁 𝗿𝗲𝗽𝗼𝗿𝘁 “𝗗𝗶𝘀𝗽𝗹𝗮𝘆 𝗙𝗮𝗯 𝗨𝘁𝗶𝗹𝗶𝘇𝗮𝘁𝗶𝗼𝗻 𝗛𝗼𝗹𝗱𝘀 𝗙𝗶𝗿𝗺, 𝗕𝘂𝘁 𝗠𝗮𝗿𝗸𝗲𝘁 𝗗𝘆𝗻𝗮𝗺𝗶𝗰𝘀 𝗔𝗿𝗲 𝗦𝗵𝗶𝗳𝘁𝗶𝗻𝗴” 𝗵𝗲𝗿𝗲: #SunicSystem# #LGDisplay# #DisplayTechnology# #AMOLED# #OLED# #MicroOLED# #LCD# #DisplayIndustry# #DisplayCapex#

🚀 #MicroLED# optical interconnects are gaining traction in AI infrastructure! U.S. smart glasses maker Vuzix showcased its Causeway waveguide platform at OCP, supporting Micro LED and VCSEL light sources for high-density optical connections.💡More: 🔗

$AXTI $LITE $COHR If MicroLED stalls, the gain goes to lasers, as Serenity says. But the two lasers he names grow on different wafers, and only one of them is short. VCSELs are gallium arsenide parts for short multimode links, the slot MicroLED was aiming at. The CW lasers that light co-packaged optics, and the EMLs in today's pluggables, are indium phosphide. InP has "only three primary suppliers," per AXT's 10-K: AXT in China, and Sumitomo Electric and JX Advanced Metals in Japan. The laser makers already say where the pinch is. Coherent: "indium phosphide capacity continues to be our primary constraint." Lumentum said in August that ultra-high-power laser demand "has surprised us" and that it has spent three months trying to "secure even more substrate supply." More supply is coming, mostly after 2027. Sumitomo plans about 3x its InP substrate capacity from 2024 to 2028. JX is spending up to ¥120bn over four years to reach 7 to 10 times its fiscal 2025 level. In China, Yunnan Germanium is going from 150,000 to 450,000 wafers a year and Vital Materials to 3 million by August 2029, and those wafers leave China under dual-use export licences. The average 4-inch InP substrate in China was RMB 6,250 in early August, up about 45% since January. So a MicroLED setback lands mostly on the wafer that's already short. AXT reports on Oct. 29, and its licensed exports to Europe are the line we'll read first.

Talk of MicroLEDs is getting ever louder with Credo promising demos at the upcoming OCP Global Summit next month. I also spent about 3 hours at Avicena's office looking at their tech in depth and asking questions. If I can get my observations written up this week on my field trip, you will see the article on Substack next week. Meanwhile, this is a great time to brush up on how exactly MicroLEDs are different from lasers, and why everybody things that reach is a problem. Free to read.

👀 #Samsung# is quietly rebalancing its #MicroLED# strategy — maintaining near-term investment while focusing more on profitability, with wearables and AR/VR reportedly emerging as its next big bet. 💡More: 🔗

Took a field trip to Avicena to try and decipher what all the microLED noise is about. Saw demo of all the tech, tried to understand roadmaps, questioned their limitations and pushed back. Report will go on the newsletter at some point .. Maybe even a @semidoped pod when we line it up

Korean media report that U.S. startup Palomino recently received its first purchase order from a strategic customer, a global hyperscaler, for GaN microLED-based optical interconnect chips for AI infrastructure. First commercial use of microLED chips for optical interconnects?

240Hz OLED Gaming Glasses 🕶️ Unboxing and first look at the ROG XREAL R1! A massive virtual display for gaming at home or on the go. • Up to a 171-inch virtual screen, equivalent to viewing it from 4 meters away • Full HD micro-OLED displays with an up to 240Hz refresh rate • 57° field of view • Anchor mode to keep the screen pinned in space, or Follow mode to move with your head • Electrochromic lenses with three levels of tint • Built-in Sound by Bose • Real-time 2D-to-3D conversion • Just 91g The ROG Control Dock is included. It has two HDMI ports and DisplayPort, so you can connect your gaming PC, PS5, Xbox Series X/S, or a docked Nintendo Switch / Switch 2, and switch between sources. For a portable setup, connect directly via USB-C to a ROG Ally, Steam Deck, Legion Go, or compatible laptop or phone that supports USB-C video output. US price: $849.99 Would you add these to your gaming setup?

Research|Optics: ECOC 2026 Takeaways, NPO Gains Momentum as Slow and Wide Takes Shape We attended ECOC 2026 in Málaga last week. The debate between slow and wide and fast and narrow was a recurring topic in presentations and plenary sessions. Companies presented microLED and micro-VCSEL designs and discussed their performance, manufacturing challenges and production timelines. NPO was also in focus, with live NPO demos on the show floor and more discussion of how and when it ramps. This note covers our takeaways from the presentations, demos and conversations with companies, including developments in NPO, scale-in, external lasers, retimers, DSPs, coherent-lite and test and measurement. Detailed Report

💰 #OVCEnterprises# have secured new #funding#, with Starksemi Semiconductor raising over ¥1b ($140m) and MemInTech closing a seed round worth tens of millions of yuan. These firms cover MicroLED chips, compute-in-memory chips, semiconductor materials, and glass storage.