Nuggets XR: Hefei’s MicroLED/OLED technology breaks through

In recent years, Hefei has developed rapidly in the fields of integrated circuits and new energy, and has formed a certain industrial foundation. Now, Hefei has once again set its strategic sights on the extended reality industry with high market popularity. Recently, Tianyancha App showed that XR chip manufacturer Yaoyu Vision has added three Hefei-based investment funds as shareholders.

It is worth mentioning that this is not the first time Hefei has invested in XR manufacturers. Hefei has previously invested in many XR companies such as JBD, Shiya Technology, Rokid, and Nadejia. Further observation of these companies invested by Hefei shows that they have certain technological accumulation in the fields of advanced display technologies such as Micro LED and Micro OLED, or have taken this as a strategic development direction.

Hefei XR Industry Layout: Focus on Micro LED/OLED Core Display Technology

Display technology plays a vital role in extended reality devices, directly determining the immersion and realism of the user experience. Previously, at the TrendForce New Display Industry Seminar, TrendForce analysts pointed out that Micro LED and Micro OLED will continue to become key technologies in the near-eye display field in the future.

According to TrendForce's "2024 Near-Eye Display Market Trends and Technology Analysis" report, although global VR/MR shipments are expected to be 7.2 million units in 2024, with the maturity of OLEDoS technology and supply chain optimization, shipments are expected to reach 40 million units by 2030, with OLEDoS technology accounting for 27%.

JBD: Shanghai Xianyao Display Technology Co., Ltd. is a major technology manufacturer in the field of Micro LED microdisplay and has completed multiple rounds of financing. Hefei-based Anhui Chuanggu has participated in its Pre-A round of financing. Ant Group led its latest Pre-B round of financing, with the funds used for research and development, mass production and market expansion.

JBD has a mature monochrome and color Micro LED light engine product line, and has provided display solutions for more than 30 AR glasses, including Shadow GO 2, Meta Orion, Rokid Glasses, etc. In order to realize Micro LED microdisplays with smaller size and higher image quality, JBD has launched the high-brightness color optical module Hummingbird I, the ultra-small AR light engine Hummingbird Mini II, and the AR optical waveguide image quality correction device ARTC. In addition, in February this year, JBD also launched Micro LED print head modules.

In terms of projects, the first phase of JBD Anhui Hefei microdisplay R&D and manufacturing project will be completed in 2023, with a total investment of approximately 1.5 billion yuan. After completion, JBD's Hefei factory will become the world's largest Micro LED micro-display production base, with an annual production capacity of up to 120 million sets of Micro LED micro-displays.

Shiya Technology: Shiya Technology Co., Ltd. is a high-tech enterprise focusing on the research, development, design and production of semiconductor OLEDoS displays. It was established in 2016 and is headquartered in Hefei. In terms of capital support, Shiya Technology received early financing support from Hefei Industrial Investment Group and attracted investments from well-known companies such as DJI and Xiaomi.

Shiya Technology’s Phase I factory in Hefei covers an area of more than 50,000 square meters, has three production lines, has a monthly production capacity of 27,000 pieces, and produces OLEDoS displays with sizes ranging from 0.32 inches to 1.03 inches. In June 2024, the company announced an additional investment of 500 million yuan to expand the Micro OLED production line in Hefei and add array silicon substrate and color film glass substrate production lines and other facilities.

Shiya Technology also provides a variety of Micro OLED display optical solutions including Pancake, Lens group, Birdbath, and Waveguide. These products have been adopted by brands such as DJI, Xiaomi, XREAL, Thunderbird, and Rokid. In order to better promote the development of Micro OLED, Shiya Technology officially launched the A-share IPO process on October 11, 2024.

Rokid: Hangzhou Lingban Technology Co., Ltd. is an AR smart glasses company. In January 2024, it completed a 500 million yuan C+ round of financing led by the Hefei Municipal Government. The funds will be used to improve B-side services and research and development capabilities. After financing, Rokid will sign a contract with Hefei Xinzhan High-tech Zone and implement three projects: the industrial Yuanshi headquarters, the ecological center and the R&D center.

Rokid initially focused on smart speaker products, but with the rise of the AR/VR glasses market, it gradually turned to the field of AR glasses. In 2023, Rokid released the AR glasses Rokid Max equipped with a Micro OLED screen; on November 18, 2024, Rokid released the Micro LED AR glasses Rokid Glasses co-branded with Tyrannosaurus Rex.

Nedjia: Beijing Nedjia Display Technology Co., Ltd. is a company focusing on AR/VR optical modules. In December 2024, it completed a Series C financing of more than 100 million yuan. This financing was participated by Hefei Construction Investment and other institutions, and the funds will be mainly used to promote the innovation and development of key technologies for the next generation of display optics.

Nedega focuses on underlying technologies such as free-form optics and optical waveguides. In the field of XR display optics, the company has achieved mass production of free-form surface products, and has made breakthroughs in optical waveguide technology such as molecular bonding and high-precision glass grinding and polishing. The company has also successfully developed 30°-60° full-color high-transparency two-dimensional array optical waveguide products and applied them to optical waveguide micro-projection light machines.

It is worth mentioning that due to its advantages of high transparency and thinness, optical waveguide technology has become one of the mainstream optical solutions for AR glasses. Many well-known brands, such as Meta, TCL, Yingmu Technology, Rokid, Vuzix, Xingji Meizu, Yiwen Technology and OPPO, have launched consumer-grade AR glasses using Micro LED and optical waveguide technology.

According to TrendForce Consulting’s analysis, the AR device market size is expected to reach 25.5 million units by 2030, and Micro LED’s market share is expected to increase to 44%. The overall growth of the AR market is expected to bring broader market space and cooperation opportunities to core optical module suppliers such as Nedega.

Summary

Core display technologies such as Micro LED and Micro OLED are regarded as one of the key technologies for future near-eye displays and play an important role in improving the user experience of XR devices. By attracting and supporting competitive companies in these core technology fields, Hefei aims to build a local XR industry ecosystem with technological advantages.

Taking into account the potential growth opportunities in the VR/MR and AR markets, as well as the future market position of advanced display technologies such as Micro LED and Micro OLED, Hefei City's strategic layout in the XR industry may bring new growth momentum to local economic development.