The Zhitong Finance App learned that Huatai Securities released a research report stating that AR uses the OST method to directly superimpose data on the real world, and the sense of interaction and integration is more natural. The micro display and optical solutions of AR glasses are the key to the development of the current industrial chain. In optical solutions, optical waveguides are currently the mainstream. Surface-embossed grating diffractive optical waveguides rely on micro-nano manufacturing. The three major technologies of grating design/grating master/nanoimprinting determine waveguide performance, and focus on improving the accuracy and efficiency of nanoimprinting equipment.
Among display solutions, Micro LED has advantages such as low power consumption and high brightness to adapt to optical waveguide solutions, and is expected to be the best choice for AR glasses micro displays. Micro LED currently needs to overcome the two major problems of massive transfer and full-color display. Next, we will focus on the application of large-scale laser transfer equipment in micro LED chips and the commercial progress of optical lens synthesis design to achieve full-color display.
The main views of Huatai Securities are as follows:
AR shipments in the Chinese market have surpassed VR in Q4 in '23, and it is expected to be the end of the headset
The essential difference between AR and VR/MR is that the perspective solution is different. AR uses optical perspective (OST), while the VR perspective solution is video perspective (VST). OST has more advantages in terms of brightness, resolution, and delay. Currently, many giants (Apple, Meta, Xiaomi, Lenovo, Huawei, etc.) and startups (Xreal, Thunderbird Innovation, etc.) are actively deploying AR products. According to the IDC report, China's VR/AR shipments reached 725,000 units in 2023, with AR shipments of 262,000 units, up 154.4% year on year, accounting for 36.1% of China's AR/VR market, a record high, and domestic shipments surpassed VR for the first time in Q4 2023. Also, compared to VR, the AR financing field is more active. In the future, AR is expected to be the end of headphone devices with price advantage+content and sensory improvement+ the continuous entry of giants into the market.
As AR optical solutions continue to evolve, optical waveguide has become the current mainstream, and micro-nano processing is the core technology
Microdisplays, optical solutions, sensors, chips, etc. are key components of AR glasses. Optical solutions mainly include prism solutions, birdbath, freeform, holographic projection, and optical waveguide solutions; among them, prism/birdbath/freeform solutions are currently technologically mature, but the field of view, image presentation effect, weight volume, etc. cannot meet consumer requirements. Optical waveguides have clear prospects for technological development in the AR field due to their light weight and good display effect, which will help promote the significant upgrading of consumer-grade AR products. In the optical waveguide scheme, diffractive optical waveguides can achieve two-dimensional pupil expansion. Surface-embossed grating diffractive optical waveguides rely on micro-nano manufacturing. Huatai Securities believes that the three major technologies of grating design/grating mastering and nanoimprinting determine waveguide performance. Follow-up attention is paid to improvements in alignment accuracy and efficiency of nanoimprinting equipment.
Micro LED adapts to optical waveguides in AR display solutions to focus on massive transfer/full-color display process progress
Currently, in mainstream AR display solutions, the two LCOS/DLP solutions are mature and can be used with optical waveguides, but the size and power consumption are large; Micro OLEDs are small in size and low in power consumption, but their brightness is low. They are often matched with Birdbath and free-form surface solutions in optical solutions, and cannot be adapted to optical waveguide solutions. Micro LED has the advantages of low power consumption and high brightness, suitable for optical waveguide solutions, and is expected to become the best choice for AR glasses micro display devices. Micro LED currently needs to overcome the two major problems of massive transfer and full-color display. Next, we will focus on the application of laser transfer technology in micro LED chip massive transfer and the commercialization of optical lens synthesis methods to achieve full-color display. Companies such as Dazu Laser/Delong Laser/Maiwei Co., Ltd. and Hymson have all deployed massive amounts of transfer equipment; Thunderbird Innovation is leading the way in Micro LED full-color technology through prism color matching technology.
Risk warning: AR content and ecology fall short of expectations, and AR technology paths have changed.