Universal Display Extends Long-Term OLED Supply Deal With Tianma

Universal Display Corporation (OLED) has entered into new long-term OLED material supply and license agreements with Tianma, a major global flat panel display manufacturer. The agreements strengthen the long-standing relationship between the two companies and highlight their shared focus on advancing OLED innovation on a global scale.

Under the terms of the agreements, Universal Display will continue supplying its proprietary UniversalPHOLED phosphorescent OLED materials and advanced technologies to Tianma through its wholly owned subsidiary, UDC Ireland Limited. These materials will support Tianma’s development and production of next-generation OLED displays. While specific financial details were not disclosed, the agreements reflect continued confidence in the partnership and its strategic importance.

Universal Display Corporation Price and Consensus

Universal Display Corporation price-consensus-chart | Universal Display Corporation Quote

Management highlighted that the renewed agreements extend a successful collaboration with Tianma, a recognized innovator in the small- and medium-sized display market. It emphasized that both companies share a common vision of advancing OLED technology to deliver sustainable and energy-efficient display solutions to consumers worldwide. Also, management stated that as UDC expands its footprint in China, the company looks forward to further strengthening its collaboration with Tianma to drive innovation, reinforce industry leadership and support the long-term growth of the global OLED display ecosystem.

Universal Display is a dominant provider of OLED technology. The technology is likely to eventually replace LED and liquid crystal display (LCD) technologies due to energy efficiency, higher contrast ratio, better viewing angle, lower video response time and smaller form factor. These superior properties of OLED provide significant growth prospects for Universal Display.

Moreover, the company’s UniversalPHOLED (phosphorescent OLED) technology produces OLEDs that are four times more efficient than fluorescent OLEDs. This provides Universal Display a competitive advantage over other OLED makers. Unlike LEDs, OLEDs can be viewed directly and don’t need diffusers. It is also expected to be cost-effective when manufactured in high volumes, which makes it suitable for commercial application in the growing solid-state lighting market. Its innovative prowess has generated a comprehensive portfolio of 6,000 patents worldwide. Collaborations with the likes of Princeton University, the University of Southern California, the University of Michigan and PPG Industries will continue to strengthen its patent portfolio in the long haul.

The company currently expects revenues in the range of $650-700 million for 2025, up from $640-$700 million previously forecasted. The gross margin is predicted at 76-77%. Despite some uncertainties in the near term, associated with geopolitical volatilities and imposition of tariffs, management remains optimistic about the company’s long-term growth potential. Growing OLED usage in IT applications encompassing tablets, laptops, monitors, automotive and various other consumer electronics applications, such as smartphones and TVs, will likely drive growth in the upcoming quarters.

OLED’s Zacks Rank & Stock Price Performance

Universal Display currently carries a Zacks Rank #3 (Hold). Shares of the company have declined 19% in the past year against the Zacks Electronics - Miscellaneous Components industry's growth of 49.4%.

Stocks to Consider From the Computer and Technology Space

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