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Apple supplier Japan Display aims to seal $468 million bailout deal by end of Oct: CEO

11 Comments

Apple Inc supplier Japan Display Inc aims to seal a revised bailout deal by the end of this month for at least 50 billion yen ($468 million) in vital funding, its new chief executive said on Monday.

Minoru Kikuoka also told Reuters in an interview that liquid crystal display (LCD) screens are drawing renewed market interest, pointing to solid demand for affordable smartphones with low-cost screens.

"We are close to (raising) 50 billion and I believe we can cement the deal this month," Kikuoka, who took the helm of the cash-strapped display maker in September, said.

The deal, if realized, would ease immediate risks of a cash shortfall after Chinese investment firm Harvest Group last month withdrew from the consortium of investors behind the bailout.

Japan Display has said Hong Kong-based Oasis Management still plans to contribute $150-180 million, while a major Japan Display client, which sources said is Apple, intends to invest $200 million.

Orders for LCD screens from a major customer have been "stronger than previously planned," Kikuoka also said. The comment follows a recent Nikkei Asian Review report that Apple has asked suppliers to increase production of its iPhone 11 models by around 10%.

© (c) Copyright Thomson Reuters 2019.

©2019 GPlusMedia Inc.

11 Comments
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This is what happens when Apple stops producing their own screens and decides to outsource their entire phone, computer, and other screen production to Samsung.

-3 ( +1 / -4 )

Look very lame to me. Won't it be better to start a new company ???.

0 ( +0 / -0 )

At a climate seminar in Tokyo last week, it was claimed that because Apple are starting to insist that all it's suppliers come into line with it's own 100% renewable energy sourcing, Japanese companies are going to be at a serious disadvantage compared to overseas competitors.

1 ( +1 / -0 )

Apple is now 100% renewable energy even its data centers as are many more tech companies which are 100% or nearing 100%.

0 ( +0 / -0 )

I think Toyota outsources most of its parts to suppliers, but when Apple does it you imply some negative technical disadvantage? The higher up the supply chain the higher value added.

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@TARA TAN KITAOKA

Look very lame to me. Won't it be better to start a new company ???.

Japan's manufacturing heydays are behind it. An Japanese LCD comeback is not possible and anyone investing into Japan Display is throwing good money away on a dead horse.

Just put Japan Display into bankruptcy and move on.

-2 ( +0 / -2 )

I hope the best for JDi and I'm confident they'll be out of the hole they're in in no time.

People should be more positive than just wishing for companies to go bankrupt, which would make people lose their jobs.

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Samit BasuToday  12:44 am JST

Japan's manufacturing heydays are behind it. An Japanese LCD comeback is not possible

It's all doom and gloom according to you isn't it. The fact that Japan Display wasn't folded the first time it hit big trouble is testimony that it won't go away. What do you gain by preaching its downfall? Will Samsung pay you some pocket money?

Japan's manufacturing heyday was killing its environment, so it moved half of it offshore. The manufacturing that stays in Japan is all high end 'pro-sumer' electronics, Japan market automobiles and sporting goods, bicycle compnents, high qaulity furniture, clothing and cosmetics.... the list is endless. But I know, you're just talking about TVs, right?? Japan still makes them locally too.

What you should be concerned about is China's and South Korea's manufacturing heyday - while being not as much of a phenomenon as Japan's was - IS killing their environment, and the only way they can surpass Japan's benchmark is to continue killing it. It's a very big price to pay just to have a "manufacturing heyday".

0 ( +1 / -1 )

This guy is just making stuff up, the future is not LCD it is OLED, Japan display sat on their hands and let competition take their market. Apple no longer buys from these guys.

-2 ( +0 / -2 )

gogogoToday  11:33 am JST

This guy is just making stuff up, the future is not LCD it is OLED, Japan display sat on their hands and let competition take their market. Apple no longer buys from these guys.

Blue OLED has a ridiculously short life span. It's ok for phones if you replace them every 2 years, but for TVs and larger monitors that replacement rate is not acceptable. In the very best case scenario they can be used for 6 years at a conservative 6hrs/day before breakdown. Consumer habits can far exceed that level of use and severely impact the longevity of the screen. It's the reason why Sony sold off its OLED business to Samsung in the first place.

0 ( +2 / -2 )

@Hillclimber

It's good to see someone with sense and proper knowledge in them. I'm sick and tired of the disrespect of the Japanese tech industry. The Japanese have tech expertise that others drool over. But, for most people here, it's shiny TVs and smartphones that make a country a tech superpower. Thank you for trying to make those people learn.

No one ever talks about Japan's car technology, (professional) audiovisual expertise, watch industry, etc.

Don't get me wrong, I like Korean tech. LG especially. But does South Korea or China have an equivalent to Denon? Audio Technica? Pioneer? Onkyo? Rotel? Nikon? Canon? Fujifilm? Sony (higher end stuff like the Signature series)? Casio? Seiko? Citizen? Alpine?

Oh, but I forgot. Japan uses Fax machines in their offices. Oh and cash! God forbid.

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