The Ministry of Science and Technology has approved applications by PlayNitride and First Vertical Laser to invest NT$500 million (US$17.1 million) and NT$150 million respectively in setting up facilities at Hsinchu Science Park.

PlayNitride will produce micro LEDs, display modules and panels there. Micro LEDs feature low power consumption, high brightness, ultra-high resolution and color saturation, quick response ttime and long service life. Micro LED displays can be used in smartphones, smartwatches, VR devices and large-size TVs.

Founded in November 2017, First Vertical will produce VCSEL (vertical-cavity surface-emitting laser) and LED epitaxial wafers. Since VCSEL wafer production entails epitaxy of over 300 layers of crystalline substances, it is difficult to control yield rates. However, First Vertical claims that it has reached a high yield rate for VCSEL wafers whose prices are competitive.

VCSEL devices are widely used in 3D sensing, autonomous driving, drones and medical detection. As there are many VCSEL device makers in Taiwan, First Vertical can become their upstream supplier of VCSEL wafers.

Meanwhile, Apple reportedly is preliminary talks with PlayNitride over cooperation in the micro LED segment, according to industry sources.

PlayNitride declined to comment.

Samsung Electronics unveiled The Wall, a 146-inch micro LED modularized TV, at CES in early January, and plans to kick off production in second-half 2018. PlayNitride reportedly has become a main supplier of micro LED panels for Samsung, who has decided to invest in the supplier to reinforce partnerships, the sources said.

Epistar has also been developing micro LED technology, while Osram Opto has signed with Ireland-based X-Celeprint for licensed use of advanced micro-transfer-printing technology developed by the latter.

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