After much suffocation, the LCD panel manufacturer Japan Display (JDI) should breathe a little more relieved if Apple really decides to invest $ 100 million in the company as disclosed by the japons website Asahi shimbun.
For some time now, Japan Display's situation has gone from bad to worse, with the manufacturer filing a recovery request that, unfortunately, failed after the withdrawal of the financial institution CGL Group, one of its main supporters.
In addition to the investment, Apple should unite the useful with the pleasurable and transfer part of its orders for LCD screens from China to Japan, one more move by the Cupertino giant to evade rising US government tariffs. Apple currently accounts for 60% of JDI's demand.
Apple has not yet officially commented on the investment, but apparently the company is even willing to help keep JDI open. In addition to financial problems, the display maker is also facing stiff competition in the market, dominated by South Koreans Samsung and LG Display.
We are still not sure if we really need Apple's investment, and the amount could be lower. However, they are showing at least goodwill. You would be surprised to see how Apple would sympathize with us.
If this really is the case, it will not be the first time Ma has financially supported JDI; In 2015, the company paid most of the $ 1.5 billion spending on building a new factory.
The deal was that Apple would be paid in part from sales of each display produced by JDI; however, as sales of LCD displays declined, until early in the year JDI still owed Apple most of the amount previously invested.
While JDI manufactures more LCD screens, the company is striving to continue producing OLED displays for Apple Watch, including the next generation of Apple Watch. gadget to be launched in the last quarter of this year.
via 9to5Mac
Update 07/01/2019 08:32
Japan Display has confirmed the $ 100 million investment (not to mention Apple specifically), plus a multi-million dollar deal with two other Chinese consortia, Harvest Group and Oasis Management, which will inject up to $ 680 million at the supplier, as disclosed by Reuters.
JDI's financial recovery process is not exactly recent, with the supplier seeking an agreement with major financial institutions in China and Taiwan not to close down.
As we said, Apple owes Apple more than $ 900 million for the Cupertino giant's investment in building a new supplier factory four years ago. In addition to the millionaire investment, Apple would have renegotiated JDI's debt for the next two years and probably not cut the display orders from the vendor.
