EssilorLuxottica Partners with Applied Materials to Scale AR & Smart Glasses Optics - Road to VR

EssilorLuxottica and Applied Materials have entered a long-term joint development agreement aimed at accelerating the commercialization of next-generation optical systems for AR and AI-powered smart g... Read original →

This partnership shifts AR optics from the periphery of consumer electronics into the semiconductor manufacturing mainstream. Applied Materials’ integration of semiconductor-grade thin-film deposition and photonics engineering into waveguide mass production could overcome current bottlenecks in diffraction efficiency and field-of-view, directly boosting demand for high-index glass (e.g., SCHOTT) and Micro-OLED displays. Tightening U.S.-EU export controls on advanced optical coating tools will likely raise technology acquisition costs for non-allied firms, accelerating supply chain regionalization. In response to Meta’s rapid Ray-Ban-based market capture, Apple and Google may fast-track in-house optical modules—Apple especially could bypass third parties and vertically integrate Lumus-style architectures. If the joint lab achieves yield breakthroughs within 18 months, smart glasses BOM costs could drop over 30%, pushing consumer AR shipments past the 10-million-unit threshold by 2027.