JDI Puts OLED Plans on Hold

JDI has had to re-align its capital raising and investment plans in the light of market developments over the last nine months. Having first planned to raise funds to invest in OLED production, the company was forced to stop the money raising process in the light of changing demand and a lack of enthusiasm from investors. As well as market changes because of the slower than hoped for Apple OLED sales, the Chinese government is reported to be changing its priority for investment from displays to semiconductors.
One of the changes that the company has identified is a big increase in demand for bezelless LCDs for smartphones, so the company has decided to work instead on developing its LCD capacity. To that end, it has gone out to investors to get capital to boost its capacity for these panels. Some analysts have suggested that success in developing its bezelless sales may still depend on sales to Apple as the company has not been successful in winning big smartphone OEMs in China.
The company raised $327 million through private share placements, about 20% less than it hoped as the price of shares will be based on its stock price, which has fallen to the lowest level for a year and a half. The new share issue will dilute the holding of the Innovation Network Corporation to around 25%
According to reports, the company then plans to come back to OLED.