After months of negotiations and bailouts, Apple?s $ 200 million investment in helping Japan Display was officially finalized today.
Apple has decided to invest in JDI by purchasing equipment that will be used for screen production, instead of injecting the $ 200 million directly into the company's coffers.
The decline of Japan Display is in part from an agreement with Apple to build a new LCD panel factory in 2015, with Apple largely funding the $ 1.5 billion project in exchange for a percentage of screen sales. Since Apple slowly migrated to OLED, this has reduced orders for JDI. In fact, the company was no longer able to repay its Apple debt. In recent months, several groups of investors have entered into negotiations to take over or finance Japan Display, but to no avail.
However, its core business with LCD screens has been greatly affected by the increasing adoption of OLED technology, to the point that the company has invested in the production of OLED panels. This would go to loss of $ 2.3 billion in 2018.
This aid from Apple is supplemented by Ichigo Asset Management, which has invested a figure close to $ 926 million. The Ichigo group takes effective control of Japan Display, becoming the largest shareholder with more than 50% of the shares. This bailout also affects Apple, as Japan Display produces the LCD panels of several iPhones. In addition, Apple is also the biggest customer of the Japanese company, with 61% of turnover in 2019.