Universal Display Corporation (UDC) - Page 16

A couple of months ago we reported that printed electronics developer Plextronics filed for chapter 11 bankruptcy protection as they failed to find a buyer or an investor.

Today Solvay (an investor in Plextronics together with Samsung and Universal Display) announced that they acquired Plextronics. Solvay did not reveal the financial details but in January it was reported that Solvay offered $24 million to extinguish debt and $8.5 in cash to acquire the company.

Universal Display reported their financial results for Q4 2013. Revenues were $49.5 million (including $20 million in license fees from SDC). Total 2013 revenues were $146.6 million (up 75% from 2012). UDC ended 2013 with $273 million in cash, up from $244 in the end of 2012.

UDC also issued a guidance for 2014 - $190 to $205 million. SDC's royalty fees will be $50 million in 2014 (up from $40 in 2013). They expect most of the growth from 2013 to be in the second half of the year - due to capacity increase at SDC and LGD's Gen-8 OLED TV fab.

The SID Display Week, the world's leading display industry showcase is scheduled for June, but the organizers already published the list of papers to be presented in this show. Hiding in this long list of technical achievements and research projects are some interesting new OLED developments. So here's some of the achievements to be announced during the show (at no particular order).

TCL's China Star Optoelectronics Technology (CSOT) managed to fabricate a 7" QVGA (320x240) flexible PMOLED display. The display uses a thin PEN substrate, processed at Gen-4.5. The company also proposes a design for a 14" QVGA PMOLED panel. CSOT also developed a 31" Full-HD AMOLED panel that uses a IGZO backplane. The 31" direct-emission panel was produced on a Gen-4.5 glass substrate using FMM.

In May 2013, the US DOE granted a $225,000 project to Universal Display and IDD Aerospace to develop a low-energy shelf phosphorescent OLED light targeted at aircraft interiors. A few days ago, the two companies exhibited a prototype panel at the DOE's SSL R&D Workshop.

The OLED prototype shown at the workshop is a shelf utility panel that is very slim and energy efficient. The two companies believe that the data generated by developing this shelf utility light may be applied to larger-scale OLED lighting aircraft projects, including cabin applications for interior furniture, galley, interior structure enhancements, as well as other potential adoptions in cabin accent, task, ceiling and sidewall lighting, and sign backlighting.

Universal Display announced that Kaneka signed an OLED technology license agreement. UDC granted license rights to manufacture and sell phosphorescent OLED lighting products. Kaneka will use UDC's PHOLED materials in their OLED lighting devices.

Kaneka has been developing OLED lighting panels for a long time. The company had plans to start offering OLED panels back in 2011, and showed dimmable 20 lm/w panels in five colors (warm white, red, orange, blue and green). Back in 2011 the company said those panels cost around ¥2 million (approx $24,000) per square meter - and they hoped this will drop to ¥50,000 ($600) or less by 2020.

Printed electronics developer Plextronics filed for chapter 11 bankruptcy protection. The company has a debt of $33 million, and wasn't able to find a buyer or an investor. The company plans to put itself up for auction and has an opening offer from Solvay (who offers $24 million to extinguish debt and $8.5 in cash).

Plextronics was /developing materials for printed electronics devices - mostly OLEDs and OPVs. The company offers HIL and HTL OLED stack materials and printable electrodes. The company's investors include Solvay, Samsung and Universal Display.

Aixtron and Manz signed a strategic cooperation agreement for OLED manufacturing. The two companies will co-develop solutions for efficient OLED production, based on Aixtron's OVPD technology.

Aixtron says that together with Manz, they plan to develop a Gen-8 (2300x2500 mm) system that can deposit OLED materials efficiently. Aixtron's part in this collaboration is the further development of OVPD process technology, while Manz will contribute its experience in purifying and handling large-scale glass substrates and the development and manufacturing of large vacuum systems. Aixtron and Manz will assemble a demonstration Gen-8 system in the coming months at one of Aixtrons's clean rooms.

Universal Display signed a collaboration and evaluation agreement with Philips' OLED lighting unit, under which UDC will start supplying Philips with sample PHOLED materials.

Philips is already using PHOLED materials when producing the Lumiblade Plus panel, but this 45 lm/W panel was designed by Konica Minolta and Philips is only the producer. The G350 Gen 2 OLED panel is probably also using phosphorescent materials (as it achieved 45 lm/W) but perhaps this too uses KM's design. Philips expects the G350 Gen3 to achieve 55 lm/W, so probably the new PHOLED materials will go into that panel in 2014.

PPG Industries opened a new OLED materials production facility at PPG’s Barberton, Ohio plant. This new facility will be able to handle the expanded development and production of Universal Display's PHOLED materials.

PPG is UDC's exclusive manufacturer of emitter materials, and this new facility provides the two companies with the resources to meet the high-volume needs of the growing OLED display and lighting industries.

Universal Display announced that the European Patent Office (EPO) revoked one of the company's basic phosphorescent OLED patents, EPO #1449238. The opposing parties included Sumitomo Chemical, Merck and BASF. This is one of more than 60 patents issued worldwide that cover four early fundamental phosphorescent OLED inventions developed at Princeton University and the University of Southern California.

UDC's CEO, Steven Abramson, said that they believe the EPO's decision is erroneous and they may file a petition to review the matter. In addition, UDC has a pending divisional EP patent application in which it intends to pursue substantial patent coverage that is similar to that provided in related patents that have previously been issued in the other jurisdictions. In any case, the company believes that any one decision in any one jurisdiction will not have a material effect on their business.