Digitimes Research's senior analyst Luke Lin said that Apple is working with TSMC to develop micro LED panels on silicon-based backplanes for use in the Apple Watch and augmented reality (AR) wearable device.

It is not the only thing that Apple is doing.  Apparently, there is another project developing large-size micro LED panels on TFT-based backplanes and will use them in products sized much larger than its MacBooks.

Citing his upstream sources, Lin said Apple is preparing two sizes of micro LED panels for small-size applications: a 1.3- to 1.4-inch one for its future Apple Watch and a 0.7- to 0.8-inch one for an AR wearable device, potentially AR glasses.

The Apple Watch micro LED panel may enter mass production in the second half of 2018 or 2019, while the large-size one may enter mass production in 2019 or later, stated Lin. The panel for the AR wearable device has yet to have a mass production schedule.

Lin believes Apple will only adopt the micro LED panel in the top-of-the-line models of its upcoming Apple Watch series initially. The costs of the new micro LED panels are 400-600 percent higher than those of the existing Apple Watch's same-size OLED panels, Lin estimates.