Financial

E Ink Holdings announced that it plans to invest $157-$250 million in 2026, as it continues to expand its capacity, mostly to increase its production of electronic shelf labels (ESLs) and digital signage.

EIH will start producing large panels at its new H6 production line at Hsinchu later in 2026, but the company is already working to increase capacity further. The company's plan is to build a new production lin eat Taoyuan's Guanyin District, and also to expand its capacity in the US.

E Ink Holdings, said that it expects its revenue and profits to both reach record highs in the next three years, as there's rising demand for large signage displays, and also strong demand for ESLs and color e-readers. 

E Ink is planning to build a new production line (which will be called H6) to expand its capacity, targeting large e-paper signage displays. The total investment in the new fab, which will be in Taoyuan, Taiwan, will be around $107 million.

E Ink Holdings says that it expects its revenue to decline slightly in the second half of 2025, as some of its eReader customers are likely to reduce orders as there are concerns over US tariffs. Next year, though, E Ink expects an improvement.

E Ink's Q2 2025 revenues reached $354 million, higher than the previous quarter, driven by higher demand for color panels as device makers are transitioning from monochrome displays to color displays. The company's production lines are currently fully utilized, and the company cannot supply all of its demand. E Ink's net profit in the quarter grew 47% to reach almost $100 million USD.

E Ink announced that it has signed a term ship to form a joint-venture (JV) with AUO, to jointly invest TWD 390 million (around $11.8 million USD) to establish large-sized ePaper module production lines at AUO’s Longke site in Taoyuan, with mass production expected to begin in the fourth quarter of 2025.

AUO (via its subsidiary ADP) will hold a 51% stake in the new JV, while E Ink will hold 49%. The new company will combine E Ink’s advanced ePaper materials and technology leadership, AUO Group’s strength in panel design, smart manufacturing, and production management, as well as ADP’s customer base and global market footprint in smart retail and digital signage sectors, driving aggressive expansion in large-sized ePaper display applications.

China's Zhejiang Laibao Display Technology Company officially launches its 9 billion Yuan (around $1.24 billion USD) project to build an ePaper production line in Huzhou City, Zhejiang province, based on the company's Microcavity Electronic Paper Display (MED) technology.

Last year Laibao DTC signed agreements with the local government in China to get financial support for this project. The new production line will have a monthly capacity of 180,000 sqm of glass substrate, and will target displays ranging from 7.8-inch to 55-inch inch. The project will perform the entire display production, from backplane and frontplane to touch panel integration and module assembly. 

Earlier this month E Ink Holdings said that the first quarter of 2024 will be its lowest point in the year, and indeed now the company formally reported its earnings, saying that there was a 25% decline in profits (to about $40.9 million) in Q1, as its customers struggled with an excessive inventory which resulted in decline in orders.

E Ink says that this decline is due to the transition to color ESL solutions, and it expects its IoT business to return to normal growth by Q3 2024. Its e-Reader business segment is seeing robust growth, better than expected, signalling a smooth switch to color ePaper solutions.  The company retains its positive outlook for this year, expecting revenue to grow every quarter going forward.

E Ink Holdings says that Walmart has decdied to deploy electronic shelf labels at 500 stores in the US. The first stage will call for the installation of 60 million panels, in the next 12-18 months, and will be handled by E Ink's partner, SES-imagotag.

E Ink sees growing demand for its displays, and is planning a multi-year capacity expansion plan. The company expects its revenues next year to increase sharply following Walmart's orders, and it also expects a modest increase in 2023. 

E Ink Holdings says that it expects its revenue to increase slightly in this quarter as demand for electronic shelf labels is on the rise, but it raises concerns about a recession in the near future which could decrease demand for e-readers and e-notebooks.

EIH is targeting to enter the US ESL market via partners next year, and it estimates that it the market in the US is 10 times bigger compared to the EU market. The company is currently not changing its capital expenditure plans for 2022 and 2023, and it plans to increase production in its production lines in Hschincu, Taiwan (and build new lines) in 2022-2025. It has decided to delay its planned new line in Guanyin. 

E Ink Holdings announced that it plans to invest around $110 million USD to expand the capacity of its Taoyuan (Taiwan) production line, and around $480,000 in its Yangzhou (China) facility. These projects will be finished by the end of 2024.

The company is still fully booked and cannot satisfy all the demand for its displays. The company does report, however, that demand for consumer electronics, including e-readers and e-notebooks is lower than what it foreseen. In fact the company estimates that shipments of displays for e-Readers will be 10% lower than what the company estimated for 2022, but still higher than the shipments in 2021.

Remarkable, the company behind the reMarkable 10.3" 1872 x 1404 E Ink tablet says that it has sold over 1 million devices, generating over $300 million in revenue in 2021 (with an operating profit of $31 million).

reMarkable says it closed a new financing round, with a valuation of $1 billion. The company did not disclose more about the funding round - beyond saying that they have sold a minority stake for several international investors.