China-based AMOLED producer Everdisplay (EDO) reported its financial results for Q3 2023. Net loss increased to 1.1 billion Yuan ($150 million USD), and total loss in 2023 so far was 2.39 billion Yuan (around $325 million USD).
The company says that the increased loss and drop in revenues were due to the global economic recession and weak demand in the consumer electronics market. The industry is facing a fierce price competition with radical price drops by AMOLED makers causing revenues and losses to decline.
EDO has a project to expand its 6-Gen flexible AMOLED production line in Shanghai, aiming to add 15,000 monthly substrates (the current capacity is 30,000 monthly substrates). The company aimed to start production in 2023, but it is now updating that this project is delayed and to 2024. EDO also postponed its next fundraising for this project (around $880 million USD).
The new building and systems are ready for the expansion, and EDO has already secured and installed most of the equipment for half the planned capacity (7,500 monthly substrates), and still plans to order the remaining equipment soon and commission the entire line in 2024 (and not 2023 as originally planned).