Japan-based OLED panel and display maker JOLED said it had filed for bankruptcy protection in the Tokyo District Court, citing total liabilities of ¥33.7 billion ($257 million). It also supplied his OLED displays for Apple’s smartwatches. The company will transfer its patents and R&D operations to Japan Display and cease manufacturing, influencing manufacturers of high-end OLED-based displays and his TVs such as Asus, Eizo, LG and Sony.
JOLED’s major shareholder, the Innovation Network Corporation of Japan (INCJ), said it could not expect other stakeholders to bail out the company, Nikkei reports. As a result, JOLED will close two factories in Japan and lay off about 280 employees as it exits the manufacture and sale of OLED panels. In addition, JOLED has reached an agreement to transfer its technology and development operations with approximately 100 employees to Japan Display Co., Ltd., which is also jointly owned by INCJ.
“No additional investment by related parties can be expected,” said Mikihide Katsumata, the president of INCJ.
Founded in 2015, JOLED bets on high-speed inkjet printing technology for EL layer formation as it promises increased productivity and reduced manufacturing costs for OLED panels, which were predicted to be key advantages over its competitors. I was. However, it took years for the company to start mass-producing OLED panels in an innovative way. The company’s OLED panel production facility in Nomi began operations in 2019, and in 2020 it began producing OLED display modules at its Chiba site. Basically, the company will start mass production of OLED products in 2021.
By that time, companies like BOE Display, China Star Optoelectronics Technology (CSOT), LG Display, Samsung Display, etc. dominated the market for OLED panels, making it easy for JOLED to establish a market presence. It wasn’t. However, JOLED still had contracts to supply high-end OLED panels to Asus and Eizo, using them for their professional and premium products, and Apple used screens for the Apple Watch. to Sony and LG, and marketed it under its own OLEDIO brand.
JOLED’s Nomi site in Ishikawa, Japan
Unfortunately for the company, the business continued to lose money and never turned a profit. Its owner decided to pull the plug on JOLED, shut down the manufacturing facility, and transfer its engineers and his IP to his JDI, which sees his OLED technology as particularly important.
JDI has agreed to acquire JOLED’s OLED IP, know-how and engineers as part of its growth strategy. The deal is focused on sustaining the development of OLED technology by incorporating JOLED’s expertise into his JDI business and providing employment opportunities for the JOLED engineering team. On the other hand, JDI will not take over the manufacturing and sales divisions of JOLED’s unprofitable products that JOLED chose to sell. However, JDI has committed to facilitating the smooth termination and liquidation of JOLED’s non-inherited businesses to reduce the impact on local communities, the company said in a statement.
It is unclear when JOLED will end production of panels and display modules for Asus, Eizo, LG and Sony. It is also unclear what will happen to the OLEDIO brand, although it is likely to be sold.
JOLED was established in 2015 by integrating the OLED businesses of Sony and Panasonic. Early investors in the startup included his INCJ, which held his 75% stake in the startup capital, as well as Japan Display Inc. (15%), Panasonic (5%), and Sony (5%). . Over time, JOLED needed more funding to build new manufacturing facilities (an OLED panel facility in Nomi, Ishikawa Prefecture and an OLED display module facility in Chiba Prefecture), so in 2018 it received $400 million from Denso. , raised $281 million from CSOT/TCL in 2020.
Meanwhile, JDI sold its stake in JOLED in 2020. Currently, INCJ owns his 56.8% stake in JOLED and Denso owns 16.1% stake in him, while CSOT owns 10.8% stake in him. Japan’s Ichigo Asset Management controls JDI, but INCJ holds a stake in the company.
