Raontech, a developer of microdisplays for extended reality (XR) devices, is showing strong performance.
As of 1:44 PM on the 17th, Raontech's stock is trading at 6,460 KRW, up 15.77%.
Raontech completed its merger with Daishin Balance No.11 Special Purpose Acquisition Company (SPAC) and was listed on the stock market on the 9th. Established in October 2009, Raontech possesses ultra-small display technology. Through over 10 years of research and development, it has secured core XR device technologies including ▲ LCoS (Liquid Crystal on Silicon) ▲ Micro OLED ▲ Micro LED. Its main products are microdisplay panels and integrated video control controller chipsets (SoC). Raontech’s ultra-small displays are applied not only in XR devices but also in automotive head-up displays (HUD), projectors, smart TVs, holographics, and optical communication switches. Raontech is currently the only domestic company that has succeeded in mass-producing LCoS microdisplays primarily used in AR devices. It is the sole Korean company possessing three types of technologies: LCoS, OLEDoS, and LEDoS. The company has supplied to over 200 global clients including Lenovo, Envisics, and Amazon. Raontech launched the world’s smallest high-definition panel (8.5 mm × 8.7 mm) and was recognized for its technological competitiveness by being selected as a next-generation world-class product by the Ministry of Trade, Industry and Energy in November last year.
Researcher Kim Gyusang of Hana Securities explained, "Raontech is expected to supply LCoS panels and driving controllers to two top-tier U.S. Near-To-Eye (NTE) device manufacturers and one AR-HUD manufacturer scheduled to launch products in 2023?2024."
He added, "The AR glasses from Company A, set to be released this year, are expected to be mainly used for content consumption such as gaming," and "The AR glasses from Company B, planned for release next year, will be designed to closely resemble regular glasses for everyday use."
He emphasized, "Raontech has also established a strategic partnership with Global Company E, an AR-HUD manufacturer invested in by Hyundai Mobis and GM," and "Global Company E is expected to supply AR HUDs equipped with Raontech’s LCoS panels to U.S. Company G’s vehicles starting in 2023."
Researcher Kim noted, "Raontech’s microdisplays and controllers are also installed in AR glasses used for demonstrations of APs for NTE devices by a global AP company, steadily building references," and analyzed, "Global big tech companies are racing to launch AR glasses." He further stated, "With excellent references secured, Raontech is expected to supply panels and controllers to big tech companies’ AR glasses in the future."
On the 15th, the government held the 14th Emergency Economic and Livelihood Meeting and announced a development strategy for six major sectors including displays and semiconductors. The plan discussed at the meeting includes investing 62 trillion KRW in the display industry, which has fallen to second place globally due to Chinese competition, aiming to reclaim the top position worldwide. The government will support this by providing comprehensive development strategies through policies in technology and ecosystem areas when private companies invest. Private companies plan to invest 62 trillion KRW in the display industry over five years from this year through 2026.
The Korea Display Industry Association stated on the 16th, "The government’s national advanced industry development strategy now includes demonstration and pilot projects for three new products: transparent, extended reality (XR), and automotive displays, accelerating the creation of new markets."
The association reported that the display demand market is expanding from home appliances and IT industries to future industries such as mobility and XR. It evaluated the inclusion of support measures for the three new product businesses?transparent, XR, and automotive displays?in this strategy as timely.
Researcher Ahn Jaemin of NH Investment & Securities said, "Through CES and MWC, the global ICT industry is expected to see productivity expansion and convenience enhancement based on AI and robotics, as well as the expansion of the metaverse brought closer by the development of XR devices." He added, "Samsung Electronics is also preparing to launch XR devices soon," and emphasized, "Apple is expected to unveil related devices next year, raising great expectations for ecosystem formation and industry growth."
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