Apple is looking to make its own screens

Apple is designing and producing its own device displays for the first time, using a secret manufacturing facility near its California base to make small numbers of the screens for testing purposes, according to people familiar with the situation.

The tech giant is making a significant investment in the development of next-generation MicroLED screens, say the people, who requested anonymity to discuss internal planning. MicroLED screens use different lightemitting compounds than the current OLED displays and promise to make future gadgets slimmer, brighter and less powerhungry.

The screens are far more difficult to produce than OLED displays, and the company almost killed the project a year or so ago, the people say. Engineers have since been making progress and the technology is now at an advanced stage, they say, though consumers will probably have to wait a few years before seeing the results.

The undertaking is the latest example of Apple bringing the design of key components in-house. The company has designed chips powering its mobile devices for several years. Its move into displays has the long-term potential to hurt a range of suppliers, from screen makers like Samsung Electronics Co., Japan Display, Sharp Corp. and LG Display Co. to companies like Synaptics that produce chipscreen interfaces.

The news crushed Universal Display Corp. shares Monday, sending them down as much as 16 percent. Universal Display makes key technology and owns some OLED intellectual property; investors are likely concerned Apple’s MicroLED technology will eventually replace Universal Display’s technology.

Controlling MicroLED technology would help Apple stand out in the smartphone market and outgun rivals like Samsung that have been able to tout superior screens.