Hi, everybody. I'm Scott Callon. Thanks so much for joining today. As Camille just pointed out, we're going to focus primarily on the strategic developments around BEYOND DISPLAY. We made a number of announcements yesterday, so this is in a sense kind of a way to explain what we're up to. The most important announcement is that we decided to end production out of our Mobara Fab in March 2026, and we'll consolidate production in Ishikawa. We'll touch on this later in the call, but the display industry is plagued by asset-heavy, high-cost fabs with low profitability. It's critically important that we reduce our cost and the asset heaviness of the business. The second element that is a challenge, and I'll explain this also later, is that the display business is plagued by chronic lack of profitability, and there are some structural drivers of that.
It's very important we address both of those things, and we're doing that via our BEYOND DISPLAY strategy. The great thing about Ishikawa Fab is it's going to be profitable. It has lower fixed costs and has G4.5 substrates, which are much better for semiconductor sensors and microdisplays, which are going to be key elements of our BEYOND DISPLAY strategy. Mobara will be sold as an AI data center. It's right next to Tokyo, has over 100 megawatts of power. It's really well-suited for it. We'll meet with our fab customer requirements by increasing production and transferring production to Ishikawa Fab and our foundry partners. We will go fabless with eLEAP and quite possibly our FMM or conventional OLED business. We're focusing on eLEAP because it is the future. It's extraordinary technology.
We are building, for the first time, and we can build it, a foundry fabless model in the display business. You can only do that as a fabless provider where they have very strong IP, where they have capabilities that only are available to you, and we do. eLEAP fits that. We're in multiple discussions with foundry partners. We expect to go global with eLEAP as a fabless business model, which is very powerful. We announced yesterday a strategic investment and partnership with OLEDWorks, who is fantastic. A super capable, U.S.-based OLED specialist, best in the world in what they do with OLED multi-stacking. We're proud to go with them to build an advanced U.S. display fab that's going to serve the defense, automotive, and medical industries. More on that later in this presentation.
On the semiconductor side, we announced two strategic alliances, one with PanelSemi in Taiwan, another with TECH EXTENSION, to jointly develop and produce advanced semiconductor and sensor technology. Again, this is going to be at the Ishikawa multi-fab. We're calling it multi-fab because this is also something that's very powerful. That fab is going to simultaneously going to be able to produce G4.5, G6 substrate displays, sensors, and advanced semiconductor packaging, and it's going to have a broad set of capabilities. We will run out of capacity at it. One of the challenges we have right now is we try to keep both the Mobara Fab and the Ishikawa Fab running, therefore lowering utilization in Ishikawa, which had the lower cost structure. We're going to move everything to Ishikawa and load it up, and we'll probably run out of capacity. That will be a very good thing.
It's going to be a profitable fab. I won't go through the financials that much because they're on track. Sales are down, OP and EBITDA is up. The only thing that we announced is that we're taking one-off costs on shutting down the Tottori and Mobara fabs, and that's really good for our shareholders and our going forward profitability. Let me jump to the strategy element of the presentation because that's really what's critical. This is what we're doing to become robustly profitable on a going forward basis, and it's BEYOND DISPLAY. We have a set of corporate capabilities. Those are not being deployed in a way that's profitable for our shareholders or our stakeholders, and that needs to change. Again, the answer is BEYOND DISPLAY. Let me touch on kind of the structural profitability issue. On the right-hand side, we call it mass market displays.
It's probably not fair because we have very high technology capabilities, and so do a number of our peers. But the problem with kind of large screen displays is they operate on what we call the enlargement principle, is that customers prefer them to be bigger. You have a 5 in display. People want it to be 6 in, they want it to be 7 in. If you have a 20 in display, it's better than 25 in because the larger displays in contexts that aren't microdisplays. So the micro, we're distinguishing between big displays and smaller displays. But when things need to get bigger, you'll have a fixed kind of substrate, and every year as displays get bigger, you get fewer displays out of your substrate. Unit prices don't go up.
You go to a 70 in screen from a 60 in screen, and the prices go up something like 14%-15%, I'm doing the math in my head, it doesn't. Economics worsen over time. That is the huge challenge of being in markets where there's enlargement principle on the customer side where they prefer bigger. What's so powerful about going to semiconductors and sensors and microdisplays, and by the way, OLED is fantastic in microdisplays, and the capability that we have, and we're deploying at Ishikawa. Because as I said earlier, Ishikawa is better suited with the smaller substrates to serving these markets. The great thing about products that operate in miniaturization principle is that, and semiconductors, sensors, and microdisplays are examples of that. A microdisplay example would be things like AR and headsets. Is that the smaller, the better they are.
You're constantly making them smaller year- after- year. As a result, unit sale prices don't deteriorate because as you're making them smaller, they're becoming more valuable. You economically improve over time. It is absolutely critical to understand that core driver of value. People talk about what's so difficult about the global display market is almost everybody, including us, struggles with chronic poor profitability. It's described as, well, one of the challenges is the Chinese government views this as a strategic industry, and it's putting huge subsidies, and it's made it impossible for anyone to price the economic value because of the strategic value that the Chinese have correctly seen in this. That's true. But the Chinese have also seen strategic value in semiconductors, kind of thrown kind of equal amounts of money at that, and the semiconductor industry is profitable.
It is because of this key issue. Is getting smaller better for you or getting bigger better for you as a customer? The problem with big displays is that it economically ran out of time. This is why when we say BEYOND DISPLAY, we mean beyond mass market displays. We will have a bright future in semiconductor sensors and microdisplays, and it is rooted in the more powerful economics of these industries. As I said earlier, Ishikawa is becoming multi-fab. It is going to be super flexible. It has world-leading tech. It has one quarter of the fixed costs of Mobara. It is low cost. It will be able to do all of these. It is going to do G4.5. We have fully depreciated equipment. We are going to move from Mobara to Ishikawa. We will be able to load the fab without additional cost, without additional people.
Over time, we go really hard into semiconductor sensors and microdisplays. We do have an existing set of businesses that we can make profitable. They are not the big future for us in terms of being robustly profitable. We will be able to move our display production there and make it profitable also. So what happens to Mobara, the big fab? It becomes a data center. It has the building specs to meet data center requirements. It offers over 100 MW of power in a country with not a lot of power, and on top of that, it will be robustly profitable and generate a lot of money for us and improve our financial position when we do that sale. in November, we indicated we were going to put up the V3 area. As you can see, this is the entire Mobara Fab. That is V3, which is not producing.
The J1 fab, which is currently producing. We are adding onto the J1 fab as we are closing it, and so it has great facilities. Industrial water supply is becoming more important. We will have to see where we take the technology globally in semiconductors, but water cooling has become far more important. We have engineers, we have talent. This will be a sale. There is a shortage of talent. We have super skilled engineers. A number of the potential buyers have conversations about whether we can support them in terms of our technical capabilities, and we can. So that is an important part of the package, potentially, depending on the buyer. We showed this in November. Japanese compute is going absolutely through the roof. 100,000X in compute demand in the 20 years between 2020 and 2040, and Japan cannot fill it.
This is why taking a non-special purpose facility, like our Mobara Fab, it has great structural engineering. It has HVAC. It has clean air. It has a lot of the characteristics you want from data centers. That is why it works. But it is not a special purpose data center, and so it would be your second choice, but you do not have a second choice. There is a shortage of land. There is a shortage of power supply. There is a shortage of construction. If you want to do something in the near term, and we have had conversations with the EPCOs, the Electric Power Companies, like, we would like more power. They literally get asked for, it is 2024, so the end of last year, can we get more power? I am like, "Yes, but we have to serve you.
The year is 2024, 20 years from now. This is a very powerful solution because data center demand is exploding. It is not just AI. It continues to build out year- after- year, and there is just a chronic shortage of labor that is linked to both the aging out of Japanese construction labor force, which is down 40% over the last couple of decades, and very, very strict rules on overtime that have been a kind of a double punch to the industry. It is very hard to get stuff built. That is relative to not only construction and power supply. That is why you cannot get rid of our costs also. This is what Mobara Fab looks like. When we talked about in November, we discussed it having 44 MW because that was V3 only.
As we add on J1, the other part of it, this is over 100 MW. It is extraordinarily attractive. You are the only 100+ MW site in the Tokyo Metro area. It is right next to the trans-Pacific hookup for all the fiber coming into Japan from the U.S. It is really well located, and we are in discussions with one multiplier, and it is going to be a very attractive, powerful asset that will contribute to solving Japan's data center shortage problem. As indicated earlier, we are also making a hard cutover to semiconductors. There are some geopolitical reasons for the build-out, of course, of semiconductor technology across the world. Japan has significant capabilities in this space.
We intend to add to them. We are partnering with TECH EXTENSION, TEX. We are going to use Ishikawa Fab for that. They have got world-leading technology. It is very powerful, and we are excited about it. We have got multiple pages to talk about it, so I will jump forward. We made an equity investment in them. They are doing technology transfer to us. We are bringing up the technology for the first time in Japan. Very specifically, their technology, and they have very strong IP on this, is they come out of Institute of Science Tokyo, which is going to rebrand the university, which is Tokyo Institute of Technology, which is the Massachusetts Institute of Technology of Japan.
They have enormous capabilities, and it is both an integrated development lab and an industrial consortium called the WoW Consortium. This is not academic. This is very real-world. They have tech, which is called VB Cube, and it allows you to do vertical stacking in a super efficient way. Ultra-thin, as you can see on the page. It literally decreases power consumption relative to conventional semiconductor package technology to 1/1000. This problem of everything melting, the problem of massive demands for power, is directly solved through this technology. They have been working on it for a long time. It is ready to be brought into the world, into mass production. We expect to bring it up this year and be in full mass production next year.
As I say, there is nothing more exciting than this. This is absolutely transformational for us and for the world, and that is the point. This solves an extraordinarily serious need in the global semiconductor industry, and we are going to go and get it. We are also partnering with PanelSemi. This is Taiwan-based. They are also extraordinary set of capabilities, particularly in ceramics, and also addressing the heat problems and the problems of current organic substrates that are neither flat enough in order to deal as we get to finer bandwidth, line widths, and also do not have the heat characteristics that you need. We are very pleased to work with them.
They have a capability that is not only in semiconductor packaging, but also sensors, so it builds out that capability. We have made an investment in them, and we are working forward with them, joint development and commercialization, which will happen very rapidly. This is at the Ishikawa Fab. We bring those together. The reality is that the TEX technology and the PanelSemi technology is additive, so this makes us even more powerful in the space in terms of our ability to deliver problem-solving solutions for customers. The customers are semiconductor makers who need to, again, have substrates and packaging that deal with the heat requirements, the heat tolerance requirements, and the density requirements of modern AI semiconductors. Both these sets of technologies are deeply relevant to that and will solve those problems.
We are also going in the United States with OLEDWorks, which is an extraordinary company with a global leader in multi-stack OLED technology. We also have significant capabilities in OLED, so doing something that is important in this space. Diversifying out the global set of capabilities in displays, there is no major display activity outside of Asia. Having a U.S.-based fab to serve customers in the United States in a high-performance way to contribute to 21st industrial competitiveness and national security is something that is really important. We are well along the way in this set of conversations and expect to do this pretty rapidly. Again, this is not only about putting up a brand new fab. It is about building an ecosystem to support it. We have begun conversations with customers, with suppliers. Again, this is being led by OLEDWorks.
They are on the ground and have a set of capabilities that are extremely relevant and important. We have a set of technology capabilities to serve them as one of the world's leading advanced display suppliers. So we are grateful to them for the opportunity to work with them. You are effectively building not just a single manufacturing fab, but a hub that is a source of innovation that will develop human talent, and we will have an advanced display R&D center that I think will be very powerful on a going-forward basis. Again, the focus here is not going to be mass market displays, as I said earlier. We think the economics is very compelling for defense, automotive, and medical customers. As I said earlier, eLEAP becomes fabless. We are grateful to work with our foundry partners on this. We were going to increase our eLEAP capacity.
We want to speed time to market. Our foundry partners have highly competitive cost structures, so this will lower the cost of delivery of eLEAP, which is going to build out an ecosystem, which is also going to create economies of scale to lower the cost of delivery. We obviously are fabless on this, so we are not going to have CapEx on it. I think is a very powerful solution for a technology set. Just to remind you, this is next generation OLED with much better brightness, much better longevity of the displays. The world is going to OLED. It is a better technology. It is too expensive, and the lifetime is poor. We solve that with eLEAP, and we will solve it together with our foundry partners.
Our production configuration in the display space becomes a multi-fab, which is highly cost competitive and got extraordinary technical capabilities, and we will also produce it with our foundry partners. We are focused here on eLEAP, and we mention eLEAP here. We also have extremely advanced FMM, fine metal mask OLED capabilities. We are working about potentially rolling that also in a fabless way. We do think the future is eLEAP over time, but we have a technology set that is relevant to FMM also, and that could be part of this. That is where we are. We have got the building blocks in place for BEYOND DISPLAY.
It offers a path, finally, where we have kind of just had a really hard push down the cost structure of the firm and are focusing on where we are going to be able to deliver customer value in a powerful way, in a sustainable way, and we are ready for it. Be in production at Mobara. We turn it into an AI data center. We get a ton of money, which is great. Solves our financial issues. We become, Ishikawa becomes a multi-fab, which is competitive. It does G4.5, G6 displays, including microdisplays, semiconductor and sensors. We have got the alliance with TEX to do next gen 3D semiconductor integration. We have got the PanelSemi Alliance for both advanced semiconductor packaging and sensors.
We will continue to work on sensors, OLEDWorks in the U.S. and building out the advanced U.S. fab, and eLEAP becomes fabless. That is what we got. Thank you very much. Very much appreciate your time. I will take any questions if there are any. Generally, they are not. I am doing this in the middle of the night. It turns out that who watches this is generally going to be the United States of America, who are not awake at the current point in time. Anyway. But if anybody is around and has any questions, I am happy to take them.
Appears we have no questions today. We appreciate your time and attention during this briefing. Thank you very much for joining us today, and we look forward to our next meeting. Thank you.
Thank you, everybody. We run forward.