MANCHESTER, England - Smartkem, a developer of organic thin-film transistors (OTFTs), has entered into a joint development agreement with Shanghai Chip Foundation Semiconductor Technology Co., Ltd., known as Chip Foundation, to co-develop new microLED backlight technology for Liquid Crystal Displays (LCDs). This collaboration is expected to enhance the performance of LCDs by integrating Smartkem’s organic dielectric single layer material with Chip Foundation’s microLED devices.
The agreement outlines that Smartkem will supply its Redistribution Layer (RDL) material to Chip Foundation, which will be used in conjunction with Chip Foundation’s proprietary microLED devices. The aim is to develop a high-performance miniLED package that offers high brightness and current efficiency, thereby improving the uniformity of backlight illumination and reducing power losses.
Ian Jenks, Chairman and CEO of Smartkem, stated that this joint development agreement (JDA) with Chip Foundation is anticipated to further prove the commercial viability of their dielectric single layer materials to the display industry. This announcement follows Smartkem’s recent technology collaboration with the Industrial Technology Research Institute (ITRI) in Taiwan.
Dr. Maosheng Hao, Chairman of Chip Foundation, highlighted Smartkem’s reputation as a leading provider of OTFT solutions and expressed confidence that the partnership will accelerate the adoption of advanced display technologies.
Smartkem’s proprietary technology includes TRUFLEX® semiconductor and dielectric inks, which enable low-temperature printing processes that could potentially lead to cost-effective display manufacturing that surpasses current models. The company’s materials are developed in Manchester, UK, and its semiconductor processes at the Centre for Process Innovation in Sedgefield, UK. It also operates a field application office in Taiwan.
Shanghai Chip Foundation Semiconductor Technology Co., Ltd. is known for its Chemical Lift-off (CLO) technology for Gallium Nitride (GaN) growth substrates and its Dielectric Patterned Sapphire Substrate (DPSS), which helps reduce dislocation density in GaN epitaxial layers, essential for microLED chip production.
This news is based on a press release statement and reflects the companies' current expectations for their technology's potential impact on the display industry.
In other recent news, SmartKem, a semiconductor company, has been active in the executive compensation front. The firm has awarded one-time special bonuses to key executives, including Chief Scientist Beverley Brown and Chief Technology Officer Simon Ogier, each receiving a bonus of $32,110. In addition, the company has granted stock options and cash bonuses to its top executives. CEO Ian Jenks received options to purchase 181,000 shares and a cash bonus of $26,767, while CFO Barbra Keck was awarded options for 100,000 shares and a cash bonus of $45,000. Both Ogier and Brown were granted options for 49,000 shares each. The exercise price for these options stands at $6.50 per share.
These recent developments also include the scheduling of SmartKem's 2024 annual meeting of stockholders for September 23, 2024. Stockholders on record as of August 19, 2024, will be entitled to vote at the meeting. The company's recent actions reflect a significant emphasis on executive compensation and future planning.
InvestingPro Insights
Smartkem's recent joint development agreement with Chip Foundation has the potential to mark a significant step forward in the display industry. To provide a deeper understanding of Smartkem's financial health and market position, InvestingPro data shows that the company has a market capitalization of $9.7 million. Despite its small size, the company has demonstrated impressive revenue growth of 43.33% over the last twelve months as of Q2 2024. This is particularly notable considering the company's aggressive share buyback strategy, as highlighted by one of the InvestingPro Tips.
InvestingPro Tips also indicate that Smartkem holds more cash than debt on its balance sheet, which could provide the company with a stable financial base to support its research and development efforts with Chip Foundation. However, another tip suggests that Smartkem is quickly burning through cash, which may be a point of concern for investors looking at the company's long-term sustainability. Additionally, the stock has experienced significant price volatility, with a notable return of 8.63% over the last week, but a decline of 20.29% over the past month, underscoring the high-risk nature of the investment.
For those interested in a deeper dive into Smartkem's potential and risks, InvestingPro offers 16 additional tips, providing a more comprehensive analysis for informed investment decisions. These insights, along with further detailed metrics, are available at Smartkem's dedicated page on the InvestingPro platform: https://www.investing.com/pro/SMTK.
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