Up Next, contacts from LG, AUO, Sony, and Panasonic
It looks like LG will be next to commit to PANL via a contract like Sammy. LG hinted as much at CES when they said that they would announce their commitment to OLED by March. Just a guess, but I will bet it is more than 50/50.
I'll keep saying this but they already have a contract with UDC...they will switch if and when they hit an inflection point of mass production where its less expensive to switch to SMD's arrangement. UDC in a conference call described this process better than I did...but to me it sounds like companies prefer the current arrangement LG has until they reach a critical mass production state and then want to switch. frankly while it gives UDC a more confident(well not really with roll out clauses) planning schedule for flat fees it really isn't in UDC's overall $ best interest unless they by doing so they are thinking longer term by reducing the desire to find alternative sources of material via such arrangements...ie locking in a win-win for long periods of time at less than desirable $ in exchange for the longer partnership commitment. What I hated about SMD's was the 2017 choice...IF LG never signs a SMD style deal UDC makes more $ by baking in the royalty on every unit of material sold.... if they sign a SMD style deal then the more LG makes over a threshold of "break even" the lower royalty per unit they achieve.