Japanese OLED panel manufacturer JOLED initiates bankruptcy reorganization process

JOLED, a merger of Sony and Panasonic’s organic EL panel research divisions, announced on March 27th that it has filed for a bankruptcy reorganization procedure called “civil rehabilitation” with the Tokyo District Court, which has been accepted. It is understood that JOLED’s current total liabilities amount to approximately 33.7 billion yen.

Established in January 2015, JOLED initially aimed to accelerate the mass production and commercialization of OLED displays, manufacturing OLED panels for high-end monitors, medical displays, and automotive displays. In 2019, they began production on the world’s first printed OLED line while also researching flexible and foldable screens.

JOLED stated that achieving stable production costs and timeframes exceeded expectations, coupled with previous global semiconductor shortages and a weakening demand for high-quality panels amid intensified price competition, which resulted in a deteriorating environment. Despite multiple rounds of financing, efforts to enhance profitability, and seeking additional sponsor funding, JOLED struggled to maintain operations.

JOLED will exit manufacturing and sales, closing production sites in Nomi, Ishikawa Prefecture, and Mobara, Chiba Prefecture, with no set closure date. Furthermore, around 280 non-R&D employees will be laid off. JOLED’s display technology R&D will be taken over by Japan Display Inc. (JDI), another LCD panel giant, although JDI’s own situation is not favorable, as they continue to face sustained losses and an uncertain future.