The OLED technologist is expanding beyond its facilities in Ewing, New Jersey, and opening shop in Seoul, South Korea. The new digs are conveniently located a stone's throw from the offices of OLED manufacturing leader Samsung SDI, and near the headquarters of second-largest manufacturing partner LG Display
Getting much closer to its leading partners should help Universal Display hammer out manufacturing issues, negotiate licensing contracts, and generally collaborate on a whole new level with these important companies. The move also makes me think we'll soon see an end to the series of short-term extensions to Universal Display's license agreement with Samsung. Would you move in with your significant other if he or she were about to become your ex? I see a fresh long-term agreement in the stars over Seoul.
The new offices also put Universal Display closer to a number of potential customers. Korean electronics giant Kyocera
The OLED market is practically screaming for more manufacturing capacity, and Universal Display is doing the legwork to make it happen. Korean offices may sound like an extravagant luxury, but in this case, it makes perfect sense to me as a business necessity.
Fool contributor Anders Bylund holds no position in any of the companies discussed here. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. You can check out Anders' holdings and a concise bio if you like, and The Motley Fool is investors writing for investors.