LG Seeking Compensation From Apple Over Canceled MicroLED Apple Watch Project
LG is seeking compensation from Apple following the abrupt cancelation of the microLED Apple Watch due to the substantial investments it made in preparation of the project, The Elec reports.
As a result of the device's cancelation, LG Display has apparently been left with substantial sunk costs, including the expense of purchasing 14 U.S. patents related to microLED technology from Taiwan's Ultra Display. The company now faces potential claims from its equipment partners, some of whom had also invested in the project without formal contracts in place. LG also moved equipment from Gumi in Gyeongsangbuk-do to Paju in Gyeonggi-do, secured space for the microLED backplane process, and recruited specialized personnel to form a task force dedicated to the project. Overall, LG reportedly spent hundreds of billions of won to prepare for the microLED Apple Watch.
Apple's decision to cancel the project was reportedly based on concerns about the economic viability of microLED technology for the Apple Watch. Despite its potential advantages—such as brighter displays, improved color accuracy, and better power efficiency compared to existing OLED technology—Apple determined that the production costs associated with microLED were too high to justify its inclusion in the Apple Watch. There were also significant challenges related to the manufacturing process, which would have made it more difficult to produce the displays in the required quantities.
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