03.28.23
Japan Display Inc. (JDI) signed a basic agreement for sponsor support with OLED display maker JOLED Inc. JOLED filed a petition for commencement of civil rehabilitation proceedings with the Tokyo District Court today.
JOLED was established in 2015 to develop and commercialize low-cost, high-resolution OLED displays using an efficient printing method. In 2017 JOLED became the world’s first company to commercialize printed OLED displays, and in 2021 began full-scale mass production. During this period, JOLED accumulated significant intellectual property rights (IP) and know-how related to OLED displays.
In turn, JDI has been working to deliver technology leadership, unique customer value through JDI proprietary technologies, and robust, ongoing profitability based on its METAGROWTH 2026 growth strategy announced in May 2022. One key METAGROWTH 2026 growth driver is eLEAP, JDI’s next-generation OLED technology. eLEAP is the world's first maskless OLED deposition and lithography technology, which JDI is scheduled to bring into mass production next year.
JDI has thus signed this agreement to acquire JOLED talent and OLED IP and know-how in order to expand and accelerate METAGROWTH 2026 and drive JDI customer and shareholder value growth. JDI will carry out JOLED due diligence in order to reach a definitive agreement. JDI will not be inheriting JOLED’s loss-generating product manufacturing and sales businesses, which JOLED has decided to exit – these are outside the scope of today’s agreement.
With respect to JDI’s capital relationship with JOLED, JDI acquired 15% of JOLED shares at the time of JOLED’s establishment. However, JDI sold all the shares in March 2020 as part of JDI’s portfolio restructuring and currently holds no JOLED shares.
JDI has agreed with JOLED to drive OLED technology development through inheriting JOLED’s OLED display technologies and IP, while providing employment to JOLED employees. JDI also has agreed to support the smooth termination and liquidation of JOLED businesses that JDI does not inherit, thereby alleviating the impact and burden on local communities.