Apple has partnered with Taiwan Semiconductor Manufacturing Co to develop ultra-advanced display technology in Taiwan, Nikkei Asia reported on Wednesday.

The iPhone maker plans to ultimately use these micro-OLED displays in its upcoming augmented reality devices, the report said, citing sources.

Apple is collaborating with TSMC, the sole supplier of iPhone processors, as micro-OLED displays are far thinner, smaller and use less power, making them more suitable for use in wearable AR devices, the report added.

The micro-OLED project is currently at the trial production stage and it will take several years to achieve mass production, according to the report.

Both Apple and TSMC did not immediately respond to Reuters requests for comment.

An augmented reality (AR) device is said to be among upcoming products from the Apple in 2021. The information was reportedly shared by reputable analyst Ming-Chi Kuo, who also said that new AirPods and devices with mini-LED displays are also in the pipeline. Kuo said Apple will release an augmented reality (AR) device, which could be a headset, a pair of glasses, or both, as per the report.

A recent Bloomberg report said that Apple’s first crack at a headset is designed to be a pricey, niche precursor to a more ambitious augmented reality product that will take longer to develop, according to people with knowledge of the matter.

As a mostly virtual reality device, it will display an all-encompassing 3D digital environment for gaming, watching video, and communicating. AR functionality, the ability to overlay images and information over a view of the real world, will be more limited. Apple has planned to launch the product as soon as 2022, going up against Facebook’s Oculus, Sony’s PlayStation VR and headsets from HTC.

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