Launch of large-scale JDI G6/G8.7 eLEAP project in Wuhu, China ~ MOU with wuhu economic and technological development zone to meet customer demand by expanding eLEAP roduction by >50X ~

JDI has signed a memorandum of understanding (MOU) with the Wuhu Economic and Technical Development Zone (WEDZ) in Anhui Province, China, to launch a large-scale JDI eLEAP business deploying G6 and G8.7 fabs.

  1. Wuhu eLEAP Project Background and Objectives In 2022 JDI announced the development of its next-generation OLED eLEAP technology, which uses maskless deposition and lithography to deliver breakthrough improvements in OLED display brightness and lifetime. JDI is working to create an entirely new global display ecosystem based on its Global No.1 technologies, and is scheduled to begin eLEAP mass production at its Mobara, Japan G6 fab (1.3K sheets per month) in 2024. JDI believes that eLEAP, with its extraordinary environmental advantages and cost competitiveness, has the potential to deliver unprecedented customer and social value and transform the global display industry. JDI has thus decided to launch the Wuhu eLEAP project, quickly securing large-scale production capacity to meet huge customer demand.
  2. MOU Overview

WEDZ is a national-level economic and technological development zone that was established in 1993 with the approval of the State Council of China. It has highly advanced social, transportation, and IT infrastructure and an outstanding business and residential environment, creating a new model for the integrated development of industry and the city. As a result, WEDZ has attracted numerous companies from Japan, Europe, the U.S., and Asia.
Given these strengths, JDI has agreed with WEDZ to launch the Wuhu eLEAP project in WEDZ. After obtaining the requisite approvals from relevant authorities, JDI and WEDZ are targeting the signing of the final agreement by December-end 2023, and will establish the Wuhu eLEAP operating company (“Wuhu eLEAPCo”) immediately afterwards. Wuhu eLEAPCo is planning to construct both a G6 fab (10K sheets per month) and a G8.7 fab (30K sheets per month, with G8.7 sheets >2X the size of G6), expanding JDI’s eLEAP production capacity by over 50X. G6 mass production is scheduled to start in November
2025 and G8.7 mass production in December 2026. Note: Wuhu eLEAPCo’s official company name, representative director, capital structure, and establishment date will be decided upon the signing of the final agreement.

Additionally, due to a confidentiality agreement between WEDZ and JDI, the Wuhu eLEAP project’s total investment and shareholding ratio, as well as other details with respect to the WEDZ, are currently undisclosed, but will be promptly disclosed upon the signing of the final agreement. There are no capital, personnel, or business relationships between JDI and

Earnings Impact

The launch of the Wuhu eLEAP project is an extremely important step forward in building a new global display ecosystem based on JDI’s Global No. 1 technologies. Given its substantial scale, JDI believes that the Wuhu eLEAP project will contribute
significantly to creating customer and social value globally, while supporting Wuhu’s economic development and driving JDI’s global display technology leadership and sustainable growth for JDI shareholders.
JDI is assessing the impact of the project launch on its FY24/3 consolidated earnings, and will promptly announce the details as soon as they are determined.