JDI to Control JOLED, Gets Funding

Japan Display Inc (JDI) will invest $100m to take a controlling interest in JOLED, the joint venture set up by JDI, Sony and Panasonic with the aim of developing OLED displays, using printing technologies. JOLED will become a subsidiary of JDI. JDI will also receive $650 million from the Innovation Network Corp of Japan (INCJ), a move that was widely rumoured when JDI announced weak results and a cut in its staffing (JDI to Cut 30% of Jobs – May Get More Cash) a few weeks ago. INCJ is a public/private partnership in Japan, launched in 200 and with the backing of the Japanese government and industry.

Analyst Comment

JDI has little choice but to move into OLED as the mobile world moves that way. At the moment, although JOLED has said that it will bring some niche panels to market (JOLED Plans 21.6″ UHD OLED Production), the soluble materials needed for printing OLEDs are simply not good enough, yet. Mobile panels are what JDI will need to compete in the mobile phone business, which it needs to get into for OLEDs. The $650 million is a long way below the level of investment of LG and Samsung and the likely investment by Chinese companies.