The Strategist

Japan Display discusses sale of its factory to Apple and Sharp


12/27/2019 - 09:03



Japan Display Inc is discussing sale of its main smartphones display factory to Apple Inc and Sharp Corp for 70-80 billion yen ($ 730-820 million), according to Nikkei Asian Review.Japan Display Inc is discussing sale of its main smartphones display factory to Apple Inc and Sharp Corp for 70-80 billion yen ($ 730-820 million), according to Nikkei Asian Review.



Japan Display discusses sale of its factory to Apple and Sharp
This month, the cash-strapped company said the $ 200 million financial support promised by the “customer,” could be provided in the form of equipment at the factory. Now, apparently, the sale of the entire plant is being discussed, writes Nikkei.

Japan Display owes Apple more than $ 800 million for the $ 1.5 billion spent on building the plant four years ago.

Sharp confirmed in a statement that it had received a request from a customer to consider purchasing a Japan Display factory in Hakusan in Ishikawa Prefecture.

"We carefully consider this issue, analyzing the impact that the purchase will have on our profits, as well as how high the risk that it entails," - said Sharp’s statement.

Earlier this month, Japan Display said it planned to receive financial support of up to 90 billion yen from Ichigo Asset Management, giving control to the Japanese asset manager.

Taiwan electronics contract manufacturer Wistron Corp is also set to take part in the rescue of Japan Display.

Japan Display has been losing money over the past five years and reported its 11th quarterly net loss last month due to weak display sales and restructuring costs.

source: asia.nikkei.com