Universal display signed a deal with LG in 2021 that I believe expires at the end of 2025? So can you find it and determine when it will be renewed as a best guess
ChatGPT said:
Thought for 12s
Short answer first: Universal Display’s (UDC) license and materials agreements with LG were amended on Jan 1, 2021 and “extended through the end of 2025.” If they are renewed, the most likely effective renewal date would be Jan 1, 2026 (i.e. immediately after the current term ends). My best-guess timeline is that formal negotiations or an amendment would be announced sometime in 2024–2025 (with a renewal effective 1-Jan-2026) — I explain why and list the evidence below. EDGAR Online+1
What I found (sources)
- Universal Display’s SEC filing / 10-K states the 2015 agreements “were extended by a January 1, 2021 amendment through the end of 2025.” (this is the primary company disclosure). EDGAR Online
- LG / UDC press release (Apr 1, 2021) announced the new OLED Technology License and Material Purchase Agreements that extended the parties’ long-term agreements. ir.oled.com
- Industry summaries and press coverage at the time describe the extension as a five-year renewal (i.e., 2021 ? end of 2025). OLED-Info+1
What “renewal” would practically look like (and why Jan 1, 2026 is the natural effective date)
- The current extension explicitly runs “through the end of 2025.” That implies the contractual term expires at 12:31/31-Dec-2025 and any new multi-year license amendment would most naturally begin on 1-Jan-2026. The 10-K language supports this. EDGAR Online
Best-guess about whether and when it will be renewed (probabilities and reasoning)
- Likelihood: High (I’d put a rough educated estimate at ~70% chance they agree a new multi-year extension). Reasons: long-standing relationship (UDC and LG have partnered for many years), LG’s continuing use of OLED tech in TVs/panels, and UDC’s dependence on a few large panel customers for royalties and materials. EDGAR Online+1
- Most likely effective date if renewed: Jan 1, 2026 (i.e., an amendment signed in 2024–2025 that extends the term from 2026 onward).
- Most likely announcement timing: negotiations and a public announcement are likely sometime in 2024 or during 2025, often several months before expiry (companies commonly announce extensions or new license terms before an existing term actually lapses).
- Alternative scenarios:
- They could sign a short interim extension (e.g., 1–2 years) if they want flexibility — possible if market/patent circumstances are shifting.
- They could negotiate different commercial terms (royalty rates, territory, manufacturing scope) instead of simply repeating the prior deal.
- In a low-probability downside scenario (e.g., major strategic shift at LG or meaningful patent weakening), they might choose not to renew — but that looks less likely given past history.
Key factors that will influence renewal timing and terms
- OLED market demand and LG’s product roadmap for 2025–2026 (higher volume makes renewing attractive).
- UDC’s patent strength and remaining core IP life (affects bargaining power).
- Alternative suppliers / technology (e.g., if LG can switch to other materials or architectures).
- Financial terms (royalties + material purchases) and how those match each party’s near-term forecasts. EDGAR Online+1
If you want
- I can pull and paste the exact passage from UDC’s most recent 10-K or the 2021 press release (I already located both).
- Or I can make a short timeline and negotiation checklist you could use to watch for public signals (earnings call language, SEC filings, LG investor filings) that a renewal is imminent.
Which documents I used (so you can inspect them)
- UDC SEC / 10-K filing noting “extended … through the end of 2025.” EDGAR Online
- LG & UDC press release (Apr 1, 2021). ir.oled.com
- Industry coverage summarizing the five-year extension. OLED-In
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