Apple Secures Japan Display Bailout Package With $100M Investment

Japan Display today announced that it has managed to secure a bailout package of $738 million (80 billion yen) backed by a group of companies led by Chinese investment firm Harvest Group.

The bailout package includes an investment of about $100 million from an existing JDI customer which many sources claim is Apple.

The initial bailout package for Japan Display had Taiwan’s TPK Holdings as one of the investors with an investment of around $230 million but it backed out at the latest minute. Since then, Harvest investment firm has stepped in which has allowed the bailout package to stay afloat.

Japan Display will now hold a shareholders meeting on August 29 to finalize the bailout plan. JDI itself is a joint venture formed by Sony, Hitachi, and Toshiba. At one point, the company was supplying LCD panels to a number of smartphone OEMs but as demand for LCD panels have dwindled, the company has struggled to stay afloat.

Apple had already lent money to Japan Display in the past to help it set up LCD factories. To help the struggling display maker, the Cupertino company also reduced the loan repayment rate. However, with demand for LCD panels falling and Apple itself moving away from LCD to OLED panels, Japan Display is in a tight spot. Despite its best efforts and millions of dollars of investments, it has been unable to set up its OLED production facilities.

Apple uses JDI’s display panels in a number of its product including the iPhone XR, iPad Pro, and others.

[Via Reuters]

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