As per the recent reports coming in from Japan, the pioneering leader in OLED inkjet printing, JOLED, has officially filed for bankruptcy protection at the Tokyo District Court. The company's inability to raise funds combined with liabilities amounting to approximately $257 million has led to this outcome.
Apparently, JOLED has been facing financial hardships for an extended period and will consequently have to cease operations on its two production lines. Additionally, 280 employees, out of a total of 380, will be laid off as part of this arrangement.
Moreover, the tech corporation has decided to relocate its patents and research and development activities to Japan Display Inc while also closing down its production facilities. The decision will directly impact manufacturers of premium OLED-based displays and televisions.
JOLED to transfer its OLED IP to Japan Display Inc.
According to Nikkei, the Innovation Network Corporation of Japan (INCJ), JOLED's primary shareholder, has revealed that it cannot rely on other stakeholders to assist in helping the struggling company. As a consequence, JOLED has decided to cease OLED panel manufacturing and sales operations and will shut down two plants situated in Japan, resulting in the termination of approximately 280 employees.
In addition, the company has entered into an arrangement with Japan Display Inc., a corporation co-owned by INCJ, to transfer its technology and development operations. The division currently employs approximately 100 individuals. “We could not expect relevant parties to make additional investments,” said INCJ President Mikihide Katsumata.
Stiff competition from Samsung and others could have contributed to the outcome
JOLED has faced continuous financial setbacks since its inception in 2015 due to fierce competition from established market giants such as Samsung Display and LG Display. Therefore, the company plans to terminate manufacturing operations and relocate engineering personnel and intellectual property to Japan Display.
Notably, in January 2021, Samsung Display initiated legal action against JOLED in the United States, claiming that the company has infringed upon its patented technology. So, if the latter were to be excluded from the market, Samsung would have one less competitor to contend with, considering it supplies OLED displays to various tech giants, including Apple.
