Aerkomm Inc. announced that it entered into a joint venture agreement with Sakai Display Products Corporation and PanelSemi Corporation, a company incorporated under the laws of Taiwan, on January 10, 2022. Through this Joint Venture, Aerkomm will develop and commercialize a tile antenna ("Tile Antenna"). The Joint Venture will be operated through a to-be-established California corporation ("Newco"), which will be owned initially 100% by SDPJ.

Aerkomm will license to Newco its intellectual property, know-how and research and development results related to the Tile Antenna. SDPJ will provide Newco with working capital to develop the Tile Antenna proof of concept. Upon approval of the POC, Aerkomm will contribute the intellectual property to Newco in exchange for 52% of the equity interest in Newco, and SDPJ and PanelSemi collectively will contribute $20 million in cash (less the contributions funded prior to the POC approval).

SDPJ will hold 45% of Newco's equity interest and PanelSemi will hold the remaining 3%. Moreover, according to the Agreement, SDPJ will invest €7.5 million in Aerkomm via private placement upon approval of the POC. In the event that the POC is not achieved within 11 months following the signing of the Agreement, the Joint Venture will be terminated, at which time the company will terminate the intellectual property license to Newco and Newco will remain 100% owned by SDPJ.