UDC at Goldman notes - 2/15/17
Brian Lee and Sid chatting format with one audience question at the end.
- Some general industry comments. Samsung A3 will go from 15K to 120K by the end of 2018. BOE will have 48K Gen6 by EOY17/FOY18. LG will have a brand new fab up in the 2018-2019 timeframe.
- UDC will see significant growth in 2017 and 2018, "both of these periods".
- The process to expand PPG started 8-9 months ago.
- Fully expect Samsung to adopt new materials for their S8 coming in April. All but said they already have.
- Discussed new materials for everyone else, said they are constantly delivering samples of new materials to LG, BOE, etc Issue is when they are adopted in production.
- BOE - Very aggressive. "They will probably be right there behind Samsung in Flexible capacity by 2019". He discussed the economics for them to move to a royalty-bearing agreement in the same way they talked about LG previously, but did highlight they are not selling commercial product in volume.
- Gave numbers that suggested that ex-host, UDC revenue has grown faster than the OLED end market from 2011-2015. Acknowledged 2016 has seen flat emitter revenue against the backdrop of a growing end market. IMO he wanted to say growth has resumed in Q4.....
- Samsung agreement. No preference fixed vs. variable.
- Most exciting opp next 3-5 years? All of them.
- Q from the crowd about printing. Said the efficiencies of vacuum dep. have improved to the point that printing no longer represents the necessary difference in cost to go through the volume curve(my paraphrase)
