OLED Manufacturer JOLED Files for Bankruptcy Protection Amid Industry Decline and Competition from China and South Korea

According to a report by the Nikkei Economic News, JOLED, a company that was established in 2015 by the merger of Panasonic and Sony's OLED divisions, has filed for bankruptcy protection in the Tokyo District Court on March 27, 2023. The company's total liabilities are currently 33.7 billion Japanese yen ($257 million USD).

At a press conference on the same day, Mikihide Katsumata, who holds a 56.8% stake in JOLED, stated that "it will take time to overcome the operational issues associated with large-scale production that JOLED started."

The Nikkei Economic News points out that JOLED's poor management reflects the long-term decline of the Japanese display industry, and despite constant adjustments, it failed to compete with its counterparts in China and South Korea.

When JOLED was established, it aimed to develop large-sized OLED panels by combining the technology of Panasonic and Sony, and to mass-produce them at a low cost. However, it has been difficult to expand its market share since then. JOLED has now decided to withdraw from OLED panel manufacturing and sales, and will close its two factories in Japan, with about 280 employees being laid off.

JOLED will transfer 100 employees from its technology and R&D department to Japan Display (JDI). JDI has agreed to purchase JOLED's intellectual property rights.

Japanese manufacturers were initially ahead in OLED technology, but South Korean companies such as Samsung Electronics quickly made necessary large-scale investments and gained market share. In 2020, JOLED established a capital partnership with China's BOE Technology Group, but it was hit by the COVID-19 pandemic and other issues, and its production line did not start until 2021. However, it then faced problems such as the global chip shortage, and the company's losses continued until March 2022 when its liabilities exceeded its assets.