Established in 1996, AUO specializes in display panel R&D and production, boasting a long track record of technological expertise and innovation as a long-standing industry leader. Since the AI wave began in 2025, AUO has aggressively pursued a high-value-added product strategy focused on four main directions: AI product deployment and services, Micro LED optical communication (CPO), transparent antennas for low-orbit satellites, and optical waveguides for AR glasses. For waveguide development, instead of starting everything from scratch, AUO has strategically leveraged its decade-long expertise in nanoimprint lithography (NIL), previously deployed for in-cell wire grid polarizers, to enter the waveguide market. TrendForce recently had the privilege of interviewing Allen Wu, Associate Vice President at AUO, to gain a deeper understanding of the company’s recent development and deployment in the waveguide industry.

So far AUO has publicly exhibited its full-color waveguides based on nanoimprint lithography, featuring a lens weight of 3.9 grams per unit while offering a field of view (FOV) ranging between 25-30 degrees and a brightness level of 1,500 nits/lm. Considering market trends and customer needs, AUO is set to launch a new single-panel full-color waveguide featuring an approximately 30° FOV by 2027 to meet the demand for more lightweight, comfortable binocular AR near-eye display applications. The company will also work with customers on product validation and volume production acceleration.

In the highly competitive waveguide market, Wu said that AUO must take a more selective approach to equipment investment while leveraging its long-term collaboration across the supply chain to significantly tighten its criteria for investment decision-making. In terms of the product roadmap, although monocular, monochromatic waveguides have lower barriers to entry and established market demand, AUO has focused on binocular single-panel full-color waveguides for higher product value. To achieve this, the company is leveraging over ten years of heterogeneous integration capabilities, including nanoimprint-based optical design, processing technologies, material development, and surface coating.

Besides technological advantages, AUO’s foundation for entering the waveguide market is also attributed to its loyal customer base in the display industry and close partnerships with supply chain members built over the years. Combined with its extensive experience in smart manufacturing, AUO can penetrate the B2B market through small-volume production, gradually developing its manufacturing scalability, thereby building trust and securing orders from international market leaders.

Speaking of potential application scenarios, Wu proposed a promising commercial pathway well-suited for AUO’s unique strengths: while promoting digital smart manufacturing solutions, AUO has the opportunity to serve as both a customer and a provider in supply contracts. Specifically, AUO can combine AR glasses equipped with AUO’s waveguides with AUO’s phygital-fusion AI smart manufacturing solutions to deliver services such as precision maintenance and repair, as well as remote guidance. After complete field validation checks, AUO can transform these results into edge AI software-hardware integrated smart manufacturing solutions accessible to external parties.

From technology R&D, through investment deployment, to domain applications, AUO is staking its claim in the waveguide market with a comprehensive strategic approach. Leveraging its deep expertise in the display industry and a differentiated technology roadmap, AUO demonstrates its potential to establish a strong foothold in the AR glasses supply chain.

Author: Estelle / TrendForce