India's display fab debate: Micro-OLED versus LCD and OLED technology

Meity mulls using micro-OLED tech for 1st display fab plant

The Ministry of Electronics and Information Technology (Meity) is considering state-of-the-art micro-organic light emitting diode (micro-OLED) technology (tech) as an option for the country’s first display fabrication (fab) plant.

 

The new tech provides extremely high resolution, uses very small and thin panels, delivers greater brightness, and is more power-efficient than both OLED and liquid crystal display (LCD). It is already being deployed in the fast-growing augmented reality, virtual reality (VR), and extended reality handset market (such as Apple Vision Pro and Meta VR), as well as in military and aviation viewfinders, high-end cameras, and other specialised devices. However, a raging debate has emerged among stakeholders (original equipment manufacturers and electronic manufacturing services/EMS companies), many of whom are pushing for LCD tech. They argue it is widely available, affordable, and that demand in India will remain strong. An LCD-powered display fab could cost $2 billion to $3 billion. 

 

Critics counter that micro-OLED is still in its infancy, too expensive, and faces limited demand. Some EMS players, meanwhile, are lobbying for advanced OLED tech to be prioritised. A senior Meity official explained why micro-OLED is being considered: “LCD is old tech. Many plants are shutting down, and the sector is dominated by the Chinese, who control 90 per cent of production capacity. OLED tech is controlled by South Korean companies, though China is catching up. But micro-OLED is a revolutionary emerging tech for the future.”

 

While no final decision has been made, establishing a display fab plant has long been seen as the missing piece in the ₹75,000 crore semiconductor scheme. Although the government initially planned to support two display plants, no project has yet moved forward. Meity has now made clear that display fabs will be a priority under the proposed Semicon 2.0.

 

So far, only older proposals from Vedanta and Rajesh Exports — to set up LCD fabs — are on the table, but they have not received government endorsement for subsidies. Globally, however, companies are rushing towards micro-OLED. These include Sony Semiconductor Solutions in Japan, Samsung and LG Display (using SK hynix fabs) in South Korea, BOE, SeeYA Technology, Sidtek, and BCDTek in China, Microoled in France, and Kopin in the US. Apple has also tied up with Taiwan Semiconductor Manufacturing Company to manufacture micro-OLED displays. While production costs remain steep, industry experts expect scale and new applications — in automobiles, healthcare, and eventually consumer electronics — to push prices down. Industry estimates peg the global micro-OLED market at $1.5-3 billion by 2025, expected to soar to over $25 billion by 2030. The challenge for India lies in accessing advanced tech, restricted to a few countries. 

 

Supporters of LCD argue that in sheer volumes, it will account for 55-58 per cent of the global display market even by 2030, far larger than OLED. They add that LCD plants can be upgraded to OLED with an incremental investment of $500 million to $1 billion. With China gradually shifting from LCD to OLED to take on Korea, they say the tech will be readily available.

 

Those advocating for OLED disagree. A managing director of a consumer electronics company said: “LCD tech is dying. Why should we invest in it? With massive economies of scale, China will outprice any Indian plant. The focus should be on OLED though accessing the tech is tough. But that’s the future.”