JDI won Apple's 200 million investment and was once an apple panel provider
San Francisco - on March 31, according to foreign media reports, sources revealed that Apple invested another $200 million in its supplier Japan display Inc. (JDI), although the latter still owed apple more than $800 million as of last year.
On Tuesday, JDI said it had finalized a $200 million financing deal, which would come from an "overseas customer" of the company. The source said that the customer was apple.
JDI said in a statement that the $200 million will be provided in the form of customers purchasing equipment from JDI's smartphone screen factory in central Japan.
Founded in 2012, JDI is a semiconductor display technology company formed by the merger of LCD panel businesses of Hitachi, Toshiba and Sony. The company is a supplier of Apple's iPhone display.
Apple's cooperation with Japanese display companies can be traced back to a few years ago. As early as 2015, Japanese display company reached an agreement with apple to establish a display panel factory in Japan to produce LCD panels for Apple products.
The plant spent about $1.5 billion on JDI. As part of the cooperation agreement, apple agreed to pay most of the construction funds of the factory, and in return, the Japanese display company will repay the cost with a certain proportion of screen sales. People familiar with the matter said that as of last year, JDI still owed apple more than $800 million.
Because mobile phone mobile phone manufacturers are turning to OLED panels, Chinese mainland LCD panel makers are increasing capacity and the demand for smart phones is weak, JDI is facing a severe business environment. Over the past five years, the company has continued to lose money. JDI also missed many apple orders because of the slow pace of turning to OLED panels.
The financial situation of Japanese display company makes it in urgent need of external funds. In the past, the company has sought other investments, including raising more than $500 million in early 2018 to ensure that it obtains orders for iPhone XR panels; In 2016, the company received US $636 million from incj.
In February this year, foreign media reported that JDI would obtain 100.8 billion yen (about US $930 million) from Ichigo asset, an independent investment consulting firm. In mid March this year, the company also said that it had reached a basic agreement with Ichigo asset on accepting up to 10 billion yen of additional financial support. So far, JDI's maximum support fund from Ichigo asset will reach 110.8 billion yen.