Active matrix OLED panel supplier Ritdisplay has signed a letter of intent with Micro LED maker PlayNitride to jointly develop next-generation Micro LED technology for wearable devices.
The company's board of directors approved a 6.7 million new shares swap with PlayNitride on Tuesday, valued at 10% of the company's share capital. The company said in a regulatory document that detailed information on the share exchange ratio will be disclosed after the two parties have signed a formal stock swap agreement.
The transaction is expected to be completed by the end of this year.
DC Wang, CEO of Ritdisplay Technology, said, "Through the equity swap and strategic alliance with PlayNitride, the company will help the company enter the next-generation Micro LED market. Thereafter, Gempower will be able to produce, develop and sell Micro LED panels. The cooperation will also accelerate the commercialization of Micro LED technology. "He also pointed out that the company plans to use this new technology to produce 3-inch displays for wearable devices.
Founded in 2014, PlayNitride is one of the world`s leading developers of Micro LED technology. The company has been planning to expand its production facilities in preparation for mass production of MicroLED displays.
In the meantime, Ritdisplay has talked with several potential customers to discuss how to use this new Micro LED technology in their new products.
Ritdisplay Technology's net profit in the last quarter was NT $ 28.67 million, which was half of NT $ 56.95 million in the previous quarter, or NT $ 0.43 in earnings per share. Gross profit margin increased from 16.3% to 21.02%. However, due to the uncertainty of the US-China trade dispute, customers delayed the introduction of new products. The company's revenue fell from NT $ 636.6 million to NT $ 509.4 million, a decrease of 21.31%.