|If Samsung has zero alternatives to UDC and would literally have to close their factories for a year, then why is UDC asking for such small royalties?|
UDC is a company full of scientists, many probably millionaires by now, who like designing cool stuff. Their mentality is to be the first to come up with something and crush the competition to the finish line. They are not interested in burning down the company in the short term. They want to keep their jobs to continue to make cool stuff and not just for the money.
The host material fiasco was partly caused by that mentality. They were so focused on designing cool stuff that they didn't realize their customer couldn't afford it. It was still an important source of revenue at the time.
Do you believe that their business model will last longer and be more lucrative in the long run because they are only collecting a .75% royalty versus a 2% royalty?
If Samsung thinks that UDC is worth 2% then they should try to buy UDC. They love monopolies. The stock should rise to prevent that from happening, hence a reason why the stock has support at these levels.