Apple Supplier Japan Display to Receive $830 Million Funding From Asset Manager Ichigo

Apple, which sources LCD panels for iPhones from Japan Display, has also agreed to shorten payment periods and to put up $200 million.

Share on Facebook Tweet Snapchat Share Reddit Comment
Apple Supplier Japan Display to Receive $830 Million Funding From Asset Manager Ichigo

Apple has agreed to shorten payment periods and to put up $200 million

Highlights
  • Ichigo will join Apple and Wistron in bailing out Japan Display
  • Apple's commitment has reassured potential investors for Japan Display
  • "It's a vote of confidence," one of them said

Apple supplier Japan Display said on Thursday it plans to receive up to JPY 90 billion ($830 million) in financial support from Japanese asset manager Ichigo Asset Management. Ichigo will join Apple and Taiwanese contract electronics manufacturer Wistron in bailing out the advanced liquid crystal display (LCD) maker. Apple's commitment to financially support Japan Display has reassured potential investors, two sources with direct knowledge of the talks told Reuters.

"It's a vote of confidence," one of them said on condition of anonymity because of the sensitivity of the matter.

Apple, which sources LCD panels for iPhones from Japan Display, has agreed to shorten payment periods and to put up $200 million. The US tech giant has rarely intervened to help distressed suppliers.

It will soon use organic light-emitting diode (OLED) screens from Japan Display for the Apple Watch, diversifying supplies currently dependent on LG Display.

Japan Display has been losing money for the past five years because of its late shift to OLED and a slowing smartphone market. Last month, it reported its 11th consecutive quarterly loss.

Bailout talks repeatedly derailed as Chinese investment firm Harvest and several other potential investors pulled out of the plan.

Japan Display was formed in 2012 when the liquid-crystal display businesses of Hitachi, Toshiba, and Sony merged in a government-brokered deal.

The company came under scrutiny last month after it began a review of past earnings reports following revelations that an executive, who was fired last year, had embezzled about $5 million.

Comments

For the latest tech news and reviews, follow Gadgets 360 on Twitter, Facebook, and subscribe to our YouTube channel.

Further reading: Apple, Japan Display, Ichigo
Google, Fitbit Deal Said to Be Reviewed by US Justice Department
Samsung Galaxy A71 vs Samsung Galaxy A70: What’s the Difference

Related Stories

 
 

Advertisement

 

Advertisement

© Copyright Red Pixels Ventures Limited 2020. All rights reserved.