Samsung Display Co., the display unit of South Korean conglomerate Samsung Group, has finalized the process of acquiring U.S.-based microdisplay manufacturer eMagin Corp., according to eMagin on Wednesday local time, in a move likely to boost Samsung Display’s new businesses related to extended reality (XR) and mixed reality (MR).

eMagin announced Wednesday that Samsung Display completed acquiring the company for $2.08 per share in an all-cash transaction. “Together, we will be able to achieve the full potential of eMagin’s next-generation AR/VR solutions. Our customers will benefit from significant improvements to our production capabilities in terms of yield, efficiency, and quality control,” eMagin chief executive officer Andrew G. Sculley said. “We are confident that we can accelerate the development of our Direct Patterning Technology.” Direct patterning is considered a key technology for micro light-emitting diodes (LEDs).

Even after the acquisition, eMagin will retain its operations in its facilities in Hopewell, New York. The eMagin acquisition is expected to give Samsung Display an advantage in the future XR market by acquiring OLED on silicon (OLEDoS) technology with a large market potential in a short period of time. In May, Samsung Display announced plans to acquire eMagin in light of the latter’s core process technology and original patents for OLEDoS manufacturing to secure competitiveness in the XR market.

eMagin shareholders approved the acquisition deal on August 31 at an online shareholders’ meeting. Since then, Samsung Display had been applying for technology transfer reviews and reporting the merger in the United States, United Kingdom, and Vietnam. eMagin is a microdisplay company founded in 1996 in New York and produces products in various fields such as augmented reality (AR), virtual reality (VR), and aircraft helmets. The company’s sales hit $30 million in 2022.

Direct patterning technology is a particular next-generation technology that can implement brighter screens with lower power and is considered a key technology for XR devices for offering thinner displays.

“Global big tech companies such as Meta Inc., Apple Inc., and Google Inc. are ramping up their XR businesses, and Samsung Display is also expected to gain further momentum in its XR business with the eMagin acquisition,” a display industry official said.

By Choi Seung-jin and Choi Jieun

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