Financial - Page 9

In April 2022, we reported that the Korean Government is considering designating OLED technology as a "national strategic technology", which means that companies will be given tax benefits, to encourage further investments and R&D in the OLED industry.

According to new reports to Korea, the government will unveil a new draft tax law tomorrow that will indeed include new benefits to OLED developers, as OLED will be regarded as a national strategic technology indeed. This will encourage companies to establish new OLED R&D activities and new production lines. The government is also also looking to add microLED and quantum dot display technologies as strategic technologies.

OLED microdisplay maker eMagin reported its preliminary financial results for Q4 2022 - the company expects revenues to be in the range of $8.1-8.3 million, up from $7.2 million in Q4 2021. The company says this was a positive quarter with strong bookings. The company's open order backlog at the end of 2022 was $16.7 million.

eMagin says that this was its fifth consecutive quarter in which it achieved year-over-year growth in product revenue. The company was cashflow positive in the quarter and now has $4.2 million in cash and equivalents. eMagin expects the delivery of an advanced, production-capable, dPd organic deposition tool in the second quarter of 2023.

According to reports from Vietnam, BOE decided to invest $400 million to build two new display factories, one of which will be used to produce OLED display modules. The OLED module fab has an estimated cost of $250 million. The module plant will begin operation by 2025.

According to the report, BOE plans to produce smartphone OLED modules at the new fab.

Kopin Corporation announced that it is sort-of spinning-off its OLED business unit. Some of Kopin's executive launched a new company called Lightning Silicon Technology, and Kopin licensed its technology to the company, and will also receive a 20% stake.

Lightning Silicon will focus on developing and supplying OLED microdisplays to the consumer AR and VR markets, and will produce its displays at China-based Lakeside Optoelectronics.

OLED microdisplay maker eMagin announced that it has received an order of approximately $1.7 million for high-brightness OLED microdisplays from Collins Aerospace for its F-35 Helmet Mounted Display System (HMDS).

eMagin says that the Lockheed Martin F-35 Lightning is the world’s most advanced jet fighter and is designed to provide intelligence, surveillance and reconnaissance in any weather conditions, day or night, in both air-superiority and strike missions. The Helmet Mounted Display System is a critical part of the F-35's human-machine interface.

UBI Research says that according to its latest study, the OLED emitter market is set to grow from around $1.82 billion in 2022 to $2.75 billion in 2027, with an annual growth rate (CAGR) of 8.6%.

In 2027, UBI expects Samsung's emitter material orders to amount to $680 million - fueled by growth in foldable OLED panels. BOE's emitter material orders will reach $380 million, and LG Display's - $230 million.

Universal Display announced that it has signed long-term OLED material supply and license agreements with Samsung Display. 

These new agreements mean that UDC will continue and supply its PHOLED OLED emitter materials to Samsung Display. The agreements are scheduled to run through December 31, 2027, and may be extended for an additional two-year period. Financial terms of the agreements have not been disclosed.

In May 2022, Visionox announced plans to build a 11 billion Yuan ($1.6 billion USD) flexible and foldable OLED module production line, in Hefei. Yesterday the company signed the formal agreement with the local government and kickstarted the project.

According to reports from China, the new factory will have a yearly capacity of around 26 million modules in sizes ranging from 6-inch to 12-inch, although the company says it will also produce wearable OLED display modules at this fab, so there will be smaller sizes as well.

Japan-based Dai Nippon Printing (DNP), the world's leading OLED FMM mask producer, is investing about 20 billion Yen (about $140 USD million) to expand the production capacity at its Kurosaki plant situated in Kitakyushu City.

DNP says that the new FMM line is expected to begin production in the first half of 2024, and will produce large-area FMM masks, suitable for the 8-Gen lines now being commissioned by the OLED industry to enhance production for IT displays. This new capacity will more than double DNP's FMM production capacity.

Universal Display reported its financial results for Q3 2022, with revenues revenues reaching a record high of $161 million, and a net income of $53 million. The company reiterated its forecast for 2022, with revenues of approximately $600 million, plus or minus $10 million.

Looking ahead, UDC remains positive of the OLED industry, but the near-term OLED demand may fluctuate due to uncertainties in the macro economy. UDC sees 2024 as a "pivotal year" for the OLED industry, with several new 6-Gen and 8-Gen OLED fabs due in that year.