Facebook Acquires Exclusive License to Plessey Semiconductor MicroLEDs

on March 30, 2020

Facebook Strikes Deal for AR Displays, Squeezing Out Apple

Facebook has struck a deal to buy all of the augmented reality displays made by British firm Plessey, as the social network looks to build AR glasses capable of overlaying virtual objects onto the real world. The deal could give Facebook an edge over Apple, which recently looked at buying Plessey, one of the few makers of AR displays, according to two people familiar with the matter.

Instead, Plessey will license its technology to Facebook and dedicate its U.K.-based factory to supplying Facebook over several years, both companies confirmed. Facebook could have tried to buy Plessey to gain access to its AR displays, but that would likely have brought intense regulatory scrutiny. Striking an exclusive supply deal speeds up the work and gives Facebook the benefits of an acquisition without a lengthy regulatory review.

THE TAKEAWAY
• Facebook will be exclusive customer of AR display maker Plessey
• By partnering with Plessey, Facebook avoided regulatory scrutiny
• Apple also looked at buying Plessey

An Apple spokesperson declined to comment and Plessey execs didn’t return requests for comment on the Apple talks.

Facebook’s deal with Plessey illustrates how tech giants are racing to secure the building blocks needed for AR headwear—technology experts believe could be as transformational as the introduction of PCs and smartphones. Facebook CEO Mark Zuckerberg recently predicted that “we will get breakthrough AR glasses that will redefine our relationship with technology” in the 2020s.

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