moving some of its LCD production out of China and turning it over to the Japanese based supplier of LCD and OLED panels. The company, which sells LCD panels for the
iPhone XR and older iPhone models, and will start producing small OLED screens for the next
Apple Watch, has been operating while in financial distress. Because it entered the OLED business too late and was forced to cut production of LCD displays for the
iPhone XR late last year, the company bled red ink to the tune of $2.3 billion in 2018 after losing $260 million the year before. Japan Display depends on Apple for over 60% of its business.
A bailout was arranged earlier this year, but the original players both bowed out. Luckily, the LCD panel manufacturer was able to find new investors and
Japan Display has announced that an 80 billion yen ($738 million USD) bailout plan has been finalized. An investment firm from China named Harvest Group is now committing 64 billion yen of that total up from the 41 billion yen it was originally going to invest in the earlier plan. The 64 billion yen allegedly includes 10.8 billion yen from Apple. The remaining 16 billion yen comes from an activist Hong Kong investment firm called Oasis Group. The latter says that it will add more financing if needed to make up for foreign exchange 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 disseminated to the investors in the bailout plan. The investors will own nearly half of the company after the transaction closes.