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In June, Apple would have invested $ 100 million in Japan Display. It also announced that it was relocating part of its LCD production in China and entrusted it to the Japanese supplier of LCD and OLED panels. The company, which sells LCD screens for the iPhone XR and older models of iPhone, and will start producing small OLED displays for the next Apple Watch, is already operating in a difficult financial situation. As she entered too late in the OLED industry and that she was forced to reduce the production of LCD screens for the iPhone XR at the end of last year , the company lost $ 2.3 billion in 2018 after losing $ 260 million the year before. Japan Display depends on Apple for more than 60% of its business.
A rescue plan was put in place earlier this year, but both original players have bowed out. Fortunately, the LCD panel maker has managed to find new investors and Japan Display has announced that an 80 billion yen (US $ 738 million) bailout has been finalized. A Chinese investment company, named Harvest Group, now devotes 64 billion yen to 41 billion yen it would invest in the previous plan. The 64 billion yen would have included 10.8 billion yen of Apple. The remaining 16 billion yen come from a Hong Kong-based activist investment company called Oasis Group. The latter stated that it would increase its funding if necessary to offset exchange rate fluctuations. The Company will hold an "Extraordinary General Meeting of Shareholders" on August 29, 2019 to vote on the issuance of new shares that will be disclosed to the investors of the bailout. Investors will hold nearly half of the company after closing the deal.
The next Apple Watch will feature an OLED panel manufactured by Japan Display
Apple would have invested $ 100 million in the Japan Display bailout
Apple started using OLED panels with the iPhone X 2017. That year, two of the three phones marketed by the technology giant were using LCDs (iPhone 8 and iPhone 8 Plus). Last year, two of three iPhones launched used OLED screens (iPhone XS, iPhone XS Max) with the iPhone XR head-to-head. Although the same report is expected this year, Apple should use the OLED screens for the three handsets it hopes to launch next year. Samsung and LG provide Apple with OLED screens for the iPhone.
"JDI has received a letter of engagement from Harvest Tech stating that Harvest Tech is firmly committed to making this investment ($ 300 million (about JPY 32.5 billion).) Harvest Tech also informed JDI than USD 100 million (approximately JPY 10.8 billion) The amount of investment (USD 300 million (approximately JPY 32.5 billion) to be provided by the Harvest Tech Overseas Fund will be provided by appropriate customer support from JDI (the "Customer") Yesterday, Mr. Lee informed JDI that Harvest Tech and the customer agreed that (i) the amount of investment expected from the Harvest Tech Overseas Fund will increase by $ 300 million (approximately 32 , JPY 5 billion) to USD 400 million (approximately JPY 43.3 billion) "- Japan Display
Japan Display was born in 2011 when the Japan Network Innovation Corporation (INCJ), Sony, Hitachi and Toshiba merged their respective LCD divisions. The company started producing LCD screens on April 1, 2012. In 2015, Apple provided the company with the essential funds needed to build a new LCD screen production site. Worth $ 1.5 billion, whose capacity is currently halved. Apple had to be reimbursed with a percentage of each screen sold. The latest report shows that Apple still owes most of the money it has invested to build the facility.
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