Sihai network

What is the logic behind JDI's 200 million investment in apple

Original title: JDI won Apple's 200 million investment: what does Apple value JDI so much?

Some readers may be unfamiliar with JDI. Its full name is Japan display Inc (JDI), a display panel manufacturer from Japan. The news that JDI won Apple's 200 million investment has attracted much attention recently, which also makes JDI the focus of attention. So what is the logic behind JDI winning Apple's 200 million investment? What does Apple value JDI so much?

JDI won Apple's 200 million investment

JDI said in a statement today that the funds will come from an "overseas customer" of the company, which is apple. JDI mainly supplies LCD panels for apple, and about 60% of JDI's revenue comes from apple. Specifically, JDI received Apple's 200 million investment, and apple purchased equipment from JDI's smartphone screen factory in central Japan.

It is not the first time that JDI won Apple's 200 million investment. As early as 2015, JDI reached an agreement with apple to establish this display panel factory in Japan to produce LCD panels for Apple's products. This is a very expensive project, which cost JDI about $1.5 billion. As part of the cooperation agreement, Apple will bear most of the $1.5 billion cost.

Because of Apple's huge investment of $1.5 billion in 2015, JDI achieved rapid development at that time. However, the rise of OLED panels and the slowdown of mobile phone growth also hurt JDI. In recent years, JDI has fallen into a development dilemma and is less and less optimistic. JDI's 200 million investment from Apple can be said to be the key to the renewal of JDI's life.

The reason why Apple spends a lot of money to help JDI is to please the restrictions of top suppliers. Especially for the screen, this can be one of the most expensive accessories in the whole mobile phone. Apple naturally hopes to support its controllable and reliable enterprises, which is the fundamental logic for JDI to win Apple's 200 million investment.

At present, when Apple has not found other manufacturers that can meet the requirements to produce OLED displays, JDI is still a good choice. According to previous news, some capacity of JDI in Japan has been switched to OLED screens by the end of 2019.