Universal Display (OLED) 27th Annual Needham Growth Conference summary

Industry developments and market trends

• OLED smartphone penetration surpassed 50% in early 2024, with mid-tier and low-end models increasingly adopting OLED displays.

• Apple introduced OLED displays in the iPad Pro in Q2 2024, signaling growth in the IT segment.

• OLED TV sales returned to growth in 2024 after several weak years, with nearly 7 million units projected.

• QD-OLED technology from Samsung is gaining momentum, though white OLED remains the larger contributor.

• Automotive OLED adoption is growing, especially in EV cockpit displays and taillights, but remains a small segment.

Capacity, competition, and strategic initiatives

• IT market is under capacity, with major investments from Samsung, BOE, and Visionox totaling about $20 billion, with new fabs expected online between 2026 and 2027.

• Competition in emissive materials has intensified, especially from China, but strong IP portfolio and customer relationships are seen as key advantages.

• Plans to expand presence in China with a new application lab and team growth in 2025.

• OVJP dry printing technology development moved from Silicon Valley to Singapore to explore broader applications beyond TVs.

• M&A appetite remains, with 6–10 venture investments in early-stage tech companies and ongoing interest in strategic acquisitions.

Product development and financial outlook

• Phosphorescent blue emitter commercialization delayed beyond 2024, but expected within months, not years; significant industry interest due to energy efficiency benefits.

• No major CapEx required for customer adoption of blue emitter; adoption curve will vary by customer and device.

• Pricing for red and green materials has held up well, with blue expected to command a premium due to higher costs and investment.

• Dividend program in place with plans to increase dividends; cash position at end of Q3 was around $900 million, providing flexibility for capital returns and acquisitions.

• Geopolitical risks and trade policies are actively managed through supply chain diversification and non-U.S. manufacturing.