From the recent citi call.. knew Chengdu sounded familiar...
Atif, Analyst, Citi: Brian, on China, can you talk about the risk from domestic material suppliers in China, and how do you maintain your pricing power?
Brian Millard, CFO and Treasurer, Universal Display Corporation: Yeah, so there has been, you know, over the last few years, a heightened competitive environment in the Chinese market. Some of that's driven by China's desire for localization and government-driven focus in that regard in the Chinese market. We continue to believe that with the breadth of our IP portfolio on a global scale, as well as the products that we have in R&D and continued strength of the relationships and desire for our customers to maintain strong ties with UDC, that we're not very concerned about the competitive threat. We do monitor it. It's something that we very much focus on, making sure that we continue to stay close to our customers. We're also looking at how we support our customers in China and Korea, but China specifically given some of the competitive threats, that we're having more labs locally.
We're setting up a new facility in Chengdu, which is very close to our customers that we'll be able to do experimentation with. We'll also be able to house inventory there. We're looking at our support model across our customer base just to make sure we're continuing to serve our customers in the highest way possible. |
