Apple Moving More LCD Orders to Japan Display and Investing $100 Million to Help Restructuring

Apple is reportedly looking to invest $100 million in Japan Display to help it go through a restructuring. Apple has been a long-time customer of the struggling Japan Display.

Apple’s decision to help Japan Display comes after TPK Holdings decided to withdraw its $230 million bailout package to the display maker. The total bailout package for Japan Display was around $740 million so it remains to be seen if other backers move forward with the bailout package or not.

Apart from investing $100 million, Apple will also be shiting its LCD display orders from China to Japan Display. This move will not only help Japan Display but also help Apple in diversifying its supply-chain and move it out of China. Japan Display already supplies Apple with around 60% of its total LCD panel requirement.

Japan Display already owes money to Apple which it took to set up its LCD factories. To help in its restructuring, Apple reduced the repayment rate of the money owed. The additional investment from the company is only going to put Japan Display in more debt, though if the restructuring is done properly this time around, the display maker has a chance of bouncing back.

With OEMs switching over to OLED panels, Japan Display needs to focus on trying to set up its OLED production line on which it has already invested millions of dollars. If not, demand for LCD panels is only going to decline and that will put the company in a fix sooner than later.

[Via Asahi]

.adslot_1 { width: 300px; height: 250px; } @media (min-width:340px) { .adslot_1 { width: 336px; height: 280px; } } <!– Like this post? Share it! –>

Leave a Reply