Smartkem Signs Memorandum of Understanding with RiTdisplay to Integrate Smartkem's OTFT Process Into Its Gen2.5 Line

Rhea-AI Summary

Smartkem (SMTK) has signed a memorandum of understanding with RiTdisplay to integrate Smartkem's organic thin-film transistor (OTFT) process into RiTdisplay's Gen2.5 pilot line. This collaboration builds upon their initial joint development agreement from 2021 and follows their 2024 government-funded project to develop the world's first commercially ready active-matrix OLED display using OTFT technology.

The integration will transfer product prototyping capabilities from the Industrial Technology Research Institute (ITRI)'s Gen2.5 line to RiTdisplay's facility, with the line expected to be operational in the second half of 2025. This non-binding agreement represents a significant step toward commercializing Smartkem's transistor technology, enabling product prototyping at RiTdisplay's state-of-the-art facility in Hsinchu, Taiwan.

Positive

• Expansion of product prototyping capabilities through integration into RiTdisplay's commercial Gen2.5 line
• Progress toward commercialization of OTFT technology
• Building on existing successful collaboration since 2021
• Government grant support for development project

Negative

• Non-binding agreement with no guaranteed execution
• Implementation timeline extends to second half of 2025
• No immediate revenue impact

Insights

Display Technology Expert

This MOU between Smartkem and RiTdisplay represents a significant technological advancement in the OTFT display sector. Moving their organic thin-film transistor process to RiTdisplay's Gen2.5 pilot line marks the crucial transition from experimental lab development to a structured commercial prototyping environment - a critical validation step that few novel display technologies achieve.

The integration into RiTdisplay's facility is particularly notable as it aims to create the world's first commercially ready AMOLED display using OTFT technology. This represents substantial technological differentiation in the display market, where innovation has historically been incremental rather than transformative. OTFT-based AMOLED could potentially offer advantages in flexibility, power consumption, and manufacturing costs compared to traditional silicon-based TFTs used in current displays.

The progression from their initial 2021 collaboration through a government-funded project to this manufacturing integration demonstrates systematic development of the technology. Moving from ITRI's research environment to RiTdisplay's commercial facility indicates the technology has matured beyond pure research into pre-commercialization phase. This transition typically occurs only when key technical hurdles have been cleared and commercial viability appears increasingly likely.

Commercialization Strategy Expert

This MOU indicates a structured commercialization pathway for Smartkem's technology, moving beyond the research phase into commercial product prototyping. For a small-cap technology company ($10.8 million market cap), securing access to established manufacturing infrastructure at RiTdisplay provides disproportionate value by avoiding capital-intensive investments while accelerating market readiness.

The multi-year relationship progression since 2021 demonstrates sustained interest from an established industry player, suggesting the technology shows genuine commercial promise. The involvement of both UK and Taiwanese government grants provides additional external validation of the technology's potential.

However, several important commercial caveats temper this positive development: the non-binding nature of the MOU means no guaranteed conversion to a definitive agreement; the extended timeline to H2 2025 before the line becomes operational; and the substantial gap that will remain between prototype capability and commercial revenue generation. No financial terms are disclosed, making economic impact assessment difficult.

The targeting of "multiple end markets" suggests a broad commercial strategy rather than a niche focus, which could expand revenue potential but may also dilute market entry efforts. The true commercial impact hinges on whether customer demonstrations later this year show compelling advantages over incumbent technologies.

Creation of a commercial pilot line at RiTdisplay is a significant step towards commercialization of Smartkem's OTFT technology

MANCHESTER, England, March 24, 2025 /PRNewswire/ -- Smartkem (Nasdaq: SMTK), which is seeking to change the world of electronics with a new class of transistor technology, has announced a memorandum of understanding with RiTdisplay Corporation, a leading developer of optoelectronic solutions, visual displays and passive-matrix OLED displays, to evaluate the integration of Smartkem's organic thin-film transistor (OTFT) process on RiTdisplay's Gen2.5 pilot line to expand Smartkem's product prototyping capability.

The memorandum of understanding is a significant progression in the collaboration work between Smartkem and RiTdisplay, which started with an initial joint development agreement in 2021, and includes the 2024 commencement of a UK and Taiwanese government grant-funded project to develop the world's first commercially ready active-matrix OLED display using OTFT technology. Under the memorandum of understanding, product prototyping capabilities will be transferred from the Industrial Technology Research Institute (ITRI)'s Gen2.5 line to a newly integrated Gen2.5 pilot line at RiTdisplay. The parties expect that the RiTdisplay line will be available for use in the second half of 2025.

RiTdisplay GM Robert Chen said, "This phase of our collaboration marks a major milestone forward in delivering a new generation of AMOLED displays to the global market and reinforces the commitment of both companies to innovation and commercial excellence. We look forward to delivering customer demonstrations later this year and accelerating the market adoption of OTFT-based AMOLED displays in multiple end markets. RiTdisplay remains committed to driving innovation across multiple display technologies, including PMOLED and OTFT. This collaboration with Smartkem allows us to explore new possibilities while continuing to enhance our core technologies."

Smartkem Chairman and CEO Ian Jenks said,"This is a major step forward in our strategy to commercialize our unique transistor technology. Once complete, we will be able to provide product prototying of the world's first commercially ready AMOLED display using OTFT technology on a commercial Gen2.5 OTFT product manufacturing line at RiTdisplay's existing state-of-the-art facility in Hsinchu, Taiwan."

The  memorandum of understanding is non-binding and there can be no assurance as to whether or when a definitive agreement will be executed by the parties or as to the ultimate terms of any such agreement.

About Smartkem

Smartkem is seeking to change the world of electronics with a new class of transistor using its proprietary advanced semiconductor materials that have the potential to revolutionize the display industry.  Smartkem's TRUFLEX® semiconductor technology enables low temperature printing processes that are compatible with existing manufacturing infrastructure with the potential to deliver low-cost, high performance displays in a range of display technologies including microLED, miniLED and AMOLED, as well as applications in sensors and logic.

Smartkem develops its materials at its research and development facility in Manchester, UK and provides prototyping services at the Centre for Process Innovation (CPI) at Sedgefield, UK. It has a field application office in Taiwan. The company has an extensive IP portfolio including 138 granted patents across 17 patent families, 17 pending patents and 40 codified trade secrets. For more information, visit our website or follow us on LinkedIn.

About RiTdisplay Corporation
RiTdisplay is the world's leader of passive matrix organic light emitting diode (PMOLED). RiTdisplay not only holds the world's largest PMOLED production capacity, but also supplies its product to multiple Tier 1 customers around the world. With its main applications ranging from smart appliances, medical devices, set-top boxes, wearables, industrial instruments, to AIOT products.

Forward-Looking Statements

All statements in this press release that are not historical are forward-looking statements, including, among other things, its market position and market opportunity, expectations and plans as to its product development, manufacturing and sales, and relations with its partners and investors. These statements are not historical facts but rather are based on Smartkem, Inc.'s current expectations, estimates, and projections regarding its business, operations and other similar or related factors. Words such as "may," "will," "could," "would," "should," "anticipate," "predict," "potential," "continue," "expect," "intend," "plan," "project," "believe," "estimate," and other similar or elated expressions are used to identify these forward-looking statements, although not all forward-looking statements contain these words. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties, and assumptions that are difficult or impossible to predict and, in some cases, beyond the Company's control. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described in the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligation to revise or update information in this release to reflect events or circumstances in the future, even if new information becomes available.

Contacts:

Selena Kirkwood
Head of Communications for Smartkem
T: +44 (0) 7971 460 364
s.kirkwood@smartkem.com

U.S. Investors
David Barnard, CFA
Alliance Advisors Investor Relations
T: 1 415 433 3777
dbarnard@allianceadvisors.com

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SOURCE Smartkem

FAQ

What is the significance of Smartkem's (SMTK) MOU with RiTdisplay for OTFT integration?

The MOU enables integration of Smartkem's OTFT process into RiTdisplay's Gen2.5 line, advancing commercialization of OTFT-based AMOLED displays and expanding product prototyping capabilities.

When will RiTdisplay's Gen2.5 pilot line with Smartkem's (SMTK) OTFT technology be operational?

The integrated Gen2.5 pilot line at RiTdisplay is expected to be available for use in the second half of 2025.

What previous collaborations exist between Smartkem (SMTK) and RiTdisplay?

The companies began collaboration with a joint development agreement in 2021, followed by a UK and Taiwanese government-funded project in 2024 for OTFT-based AMOLED display development.

Is the Smartkem (SMTK) and RiTdisplay memorandum of understanding legally binding?

No, the memorandum of understanding is non-binding, and there's no guarantee of a definitive agreement or its final terms.