Japan Display to Partner with Huike to Build Multiple OLED Panel Factories and Offer eLEAP Patent Technology for Investment in Mass Production

Japanese Display Inc. (JDI) has announced that it will provide its patented OLED technology to collaborate with domestic panel maker, Huike, to build multiple OLED panel factories. JDI is seeking to reduce its years-long accumulated operating losses and lack of funds by exchanging its patented technology for funding to invest in OLED panel mass production. The Japanese Ministry of Economy, Trade and Industry hopes that JDI will manage its patents properly to prevent leaks during the negotiation process.

Kyodo and Nikkei news agencies reported that JDI announced its cooperation with Huike in April 2023. JDI will provide its independently developed next-generation OLED technology eLEAP, and Huike will provide funding to establish an OLED panel mass production factory within the country. The new factory will introduce an 8.6-generation panel production line for television use, with the goal of mass production by 2025. Currently, both parties have signed a memorandum of understanding (MOU), and the scale and amount of the mass production factory will be further agreed upon by June 2023. Japanese Minister of Economy, Trade and Industry, Yasumasa Nagamine, said that eLEAP is an important patent and has requested JDI to properly manage it during the negotiation process to avoid technology leaks.

JDI's main products were originally LCD panels for mobile phones, but later expanded to produce LCD panels for automobiles, medical use, and more. By cooperating with Huike, a domestic manufacturer of television sets, JDI has the opportunity to enter the market for large-sized panels.

JDI completed the development of its next-generation OLED technology eLEAP in 2022, and the samples have already been shipped. It was originally planned for mass production in 2024. In addition to Huike, JDI is also testing eLEAP mass production technology with Samsung Display (SDC). JDI is attempting to establish a profit model based on patented technology due to a lack of capital to invest in mass production factories.

Scott Callon, Chairman and CEO of JDI, announced at a press conference in Tokyo on April 10, 2023, that after establishing a strategic partnership with Huike, JDI will build more than one OLED panel factory. He also revealed that the new factory located within the country is expected to have an investment scale of several hundred billion Japanese yen (several billion US dollars). However, JDI will not directly invest in the new domestic factory but will send technical personnel to the factory during mass production. The joint OLED panel technology research and development center will be located in Japan.

Scott Callon stated that JDI will not undertake heavy investment and is currently aiming to reduce its assets. In the future, JDI may also collaborate with Huike on capital. Although JDI's accumulated operating losses have been reduced, it has been impacted by the downturn in the panel industry, and its plans to turn a profit as soon as possible have been affected. Choosing to sell the eLEAP patented technology for profit is the trend.

In addition, JDI will inherit the technology research and development department and the patented printed OLED technology from JOLED, which filed for bankruptcy in March 2023. JDI will be responsible for the commercial reconstruction of JOLED's technology department. Based on JDI's policy of reducing assets, JOLED's printed OLED technology may also adopt a model of selling patent rights.