Japan Display Inc. (JDI), a Japanese display manufacturer, formed a strategic alliance with China-based large display manufacturer HKC regarding OLED technology, aiming to become world leader in displays for automobiles, wearables, and all-size monitors.
Japan Display said in a regulatory filing to the Tokyo Stock Exchange that the company had signed an MoU with HKC Corporation Limited on April 7, 2023, with a final strategic alliance agreement expected to be signed by June 2023.
According to the statement, Japan Display agreed on a long-term, comprehensive, and collaborative strategic partnership to work together on eLEAP, a global innovation and industrialization center, and a high-end automotive display business. The duo will jointly plan and build world-class eLEAP fabs, with mass production expected in 2025. Japan Display added that JDI and HKC target to be the No.1 mid-to-high-end display solution provider for wearables in shipments and market share by 2027, becoming the mid-to-high-end world's top display provider for automotive, VR, and monitors by 2028. Japan Display plans to become the global No. 3 mid- to high-end display provider in notebooks and tablets by 2028.
According to Reuters and Kyodo News, Scott Callon, CEO of Japan Display, said that this is not just a business alliance but a significant strategic alliance, and by combining Japan Display's proprietary technologies and manufacturing capabilities with HKC's cost competitiveness and sales strengths, both Japan Display and HKC's corporate value will see a significant increase.
According to Japan Display's website, the display manufacturer, founded by Hitachi, Toshiba, and Sony in 2012, has only one overseas production site in the Philippines. The alliance between Japan Display and HKC will mark the former's first manufacturing facility in China.
Japan joined the US's efforts to impose an export ban on 23 types of semiconductor manufacturing equipment on March 31, focusing on EUV-related equipment without restricting OLED-related technologies. Reuters quoted Callon saying that Japan Display would not make capital investments in new plants, and Japan's export ban would probably not affect its products.
Since its foundation, Japan Display has been posting losses most of the time, and the strategic alliance with HKC helped its shares rise by 7.9%, WSJ reports.
Japan Display's financial results (US$ million) | ||
Calendar year | Sales | Profit |
2018 | 5,571.93 | - 1,441.45 |
2019 | 5,130.75 | - 1,893.41 |
2020 | 3,635.43 | - 125.13 |
2021 | 2,538.45 | - 245.09 |
2022 | 2,265.26 | - 142.52 |
Source: Bloomberg, April 2023
