Japan Display, with problems to face the change to OLED

Last month, information about the Apple Japan Display provider came to light that claimed that the Asian manufacturer asked local banks and their own shareholders for financial assistance worth around $ 897 million to finance part of the effort for a “Extensive” restructuring of your business, which would consist of transforming the production chains of LCD screens to the new OLED panels. Now it is said that the company could be looking for an external partner to help pay part of those funds as published by the specialized media Nikkei.

Japan Display faces a difficult time due to its specialization when it comes to manufacturing LCD screens at a time when companies are slowly changing to the use of OLED in smartphones. This change, and source of your main problem, includes its main client, Apple, so the money from the restructuring will go to the installation of OLED panel production lines in part of its plants.

Japan Display is looking for investors both locally and abroad, so that they can cover two objectives: both “shore up their weak financial base”, as well as help with the operation of manufacturing operations in the change of the LCD screen to the production of OLED. It is said that his decision to host a new external partner must be firm "as soon as early next year."

Smartphone manufacturers such as Apple, its largest customer, are increasingly farther from LCD screens and are moving towards the use of OLED screens, a field in which the Japanese company is far from its rivals in South Korea. JDI, as the company is also known, has elaborated plans for extensive renovation and is on the hunt for investors in their own country or abroad who can help shore up their unstable financial base and lend a hand in operating operations.

The steps that the supplier is taking to restructure its operations will begin with a cut back in the production of LCD, as well as with the dismissal of "more than 3,500 workers" who will suffer assembly plants in China and the Philippines. In Japan, Japan Display will initiate an “early retirement program” for 250 volunteer workers who offer to join it, designed for plants designed for LCD manufacturing, including a central plant in Japan that will completely stop production and will be reused for the manufacture of OLED panels, while the remaining workers will be transferred to other factories.

The cost of Japan Display restructuring plans is estimated at around $ 1.350 million, with many observers in the market waiting for the supplier to end its next fiscal year with other monetary loss, in what would be "the fourth consecutive year of the company in the red". For their bank loans, three local banks have agreed to extend to Japan Display new credit lines worth around 997 million dollars.

Other Apple suppliers have already started manufacturing OLED panels, including the current leader in the field, Samsung, and LG Display. Apple itself is said to be a important investment actor in LG Display's OLED production with the hope that it may decrease its dependence on Samsung. Remember that Apple wants all its iPhone production in 2018/19 to be assembled with OLED.

For Japan Display, the company's planned change to OLED began with a report in December 2015, citing a plan to begin mass production of OLED panels for the iPhone in spring 2018. Then, in November 2016, The provider sought a government-backed fund to improve its LCD technology and introduce OLED lines into its plants.

The best accessories for your iPhone

Are you looking for a new case for your iPhone? An accessory for the Apple Watch? Maybe a Bluetooth speaker? Do not miss these offers on accessories and get the most out of Apple's mobile: