Strategic alliance MOU with global No. 3 display maker HKC

Japan Display (JDI) signed on April 7, 2023 a memorandum of understanding (MOU) with HKC (HKC), the global No.3 display maker, to create a strategic alliance. As global strategic partners, JDI and HKC will work together on next-generation OLED technology and fabs, a Global Innovation and Industrialization Center, and a highend automotive display business.

MOU Background and Purpose

In May 2022 JDI announced the development of eLEAP, JDI’s next-generation OLED technology. eLEAP is the world’s first OLED technology to use maskless deposition and lithography, and significantly increases display brightness and lifetime. JDI shipped its first eLEAP samples to customers in August 2022, and is scheduled to begin eLEAP mass production in 2024.

In March 2022 JDI also announced its development of HMO (High Mobility Oxide), the world’s first HMO backplane technology deployed on a G6 production line. HMO delivers 2X to 4X the field-effect mobility of conventional oxide semiconductor thin film transistors (OS-TFT), and JDI is working towards rapidly commencing mass production.

eLEAP and HMO deliver high brightness, long lifetimes, and low power consumption not achievable with conventional display technologies. By radically simplifying frontplane and backplane manufacturing processes, eLEAP and HMO lower manufacturing costs. eLEAP and HMO are also GreenTech technologies that reduce material usage in manufacturing and dramatically cut CO2 emissions.

JDI believes that eLEAP and HMO represent once-in-a-generation revolutionary advances in display technology. Providing eLEAP and HMO to other display manufacturers is thus an opportunity to create an entirely new global display ecosystem that delivers unprecedented cost performance for customers all over the world.

HKC is a highly regarded electronics manufacturer that has generated rapid growth in its large display business in recent years and is planning an IPO in China in the near future. Since 2017 HKC has launched mass production at G8.6 display fabs located in Chongqing, Chuzhou, Mianyang, and Changsha. HKC has achieved extraordinary revenue growth on the back of its powerful cost competitiveness, sales strengths, management agility, and robust financial standing.

JDI and HKC believe that combining JDI’s proprietary Global No.1 technologies and manufacturing capabilities with HKC’s cost competitiveness and sales strengths, while bringing together both companies’ rich human capital, will contribute to a significant increase in both JDI and HKC’s corporate value, and have thus signed this strategic alliance MOU.

MOU Overview

JDI and HKC have agreed to work towards signing a final strategic alliance agreement that includes the following items by June 2023:

(1) JDI and HKC have agreed on a long-term, comprehensive, and collaborative global strategic partnership to work together on eLEAP, a Global Innovation and Industrialization Center, and a high-end automotive display business;

(2) JDI and HKC will jointly plan and build word-class eLEAP fabs, targeting mass production in 2025;

(3) JDI and HKC will work together to grow into the comprehensive highend display solution provider, and have established the following long-term strategic targets for mid- to high-end displays: