UDC at Morgan Stanley in London notes - 11/30/2016
Very good review at the beginning, Sid and the MS analyst in fireside chat format.
- Tianma is a royalty bearing agreement.
- Licensing rates are at semiconductor rates, .5% to 2% . Added they are not 8% like QCOM gets<g>
- Samsung minimum volumes in the material supply agreement have always been met.
- One gram of red produces 3K 5" screens.
- They device qualify each(every) batch of emitters produced by PPG before it is shipped to the customer.
- They doubled their capacity at PPG last year and are in the process of doubling it again.
- Industry capacity will grow 50% from EOY 2015 to EOY 2017.
- Samsung's A3 has 15K now and a future max of 120K. They will see a spike in material sales for each 15K added.
- Blue? They did not pursue any avenues covered by BASF blue IP prior to the IP purchase, they do not believe in spending money on IP they will not own. They are now going through BASF's IP and the lab notebooks they received from BASF
- Any blue in their forecast? Doesn't expect any to be included in their 2017 forecast, or very little.
