Japan Display Inc. shares rose sharply Monday morning after it said it planned to team up with China’s HKC Corp. to mass-produce next-generation organic light-emitting diode panels and work on a high-end automotive-display business.
were recently 7.9% higher at 41 yen (31 U.S. cents) after rising as much as 13% earlier.
Japan Display said Monday that it signed a memorandum of understanding with Shenzhen, China-based display maker HKC to form a strategic alliance to work together on OLED technology, the automotive-display business and a joint development center.
The Japanese display maker said it planned to jointly build plants for next-generation OLED technology that it developed and aim for mass production in 2025.
Japan Display itself is planning to mass-produce the next-generation OLED, called eLEAP, in 2024.
The Japanese and Chinese display makers plan to finalize a strategic alliance agreement by June.
HKC has grown rapidly in recent years on the back of its cost competitiveness and robust financial standing and is planning an initial public offering in the near future, Japan Display said.