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Rescue of Apple supplier Japan Display leaves Japan red-faced

Monday April 15, 2019. 02:58 PM , from Mac Daily News
“Japan Display’s rescue is an embarrassing necessity for Tokyo. An investor group is buying two thirds of the company for up to 80 billion yen ($714 million), a lowball price for the former national champion,” Alec Macfarlane writes for Reuters. “It will fall into foreign hands, some of them Chinese, which could raise red flags. Yet managers have little choice but to pray the deal closes.”
“Japan Display was created with government funds in 2012. The idea was to fend off South Korean and Taiwanese rivals by merging Hitachi, Sony and Toshiba’s liquid-crystal display units. The deal created the world’s biggest maker of panels used in smartphones and tablet computers, but the company failed to stay competitive,” Macfarlane writes. “It has lost money every year since 2015.”
“Despite multiple state bailouts, Japan Display, and all its domestically developed technology, now looks set to be taken over by outsiders on the cheap… 0.4 times book value,” Macfarlane writes. “The announcement comes at a fraught time for U.S.-China relations, which might complicate the transaction. More than half of Japan Display’s 2018 sales came from Apple. A Chinese role in the takeover could therefore draw attention from the Committee on Foreign Investment in the United States; Japan Display has a subsidiary in San Jose, and the company’s fingerprint sensor technology could raise security concerns.”
Read more in the full article here.
MacDailyNews Take: Last chance.
Apple supplier Japan Display agrees to $2.1 billion bailout – April 12, 2019
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Apple says OLED finally ready for iPhones, but most suppliers still aren’t – November 17, 2016
Apple supplier Japan Display seeks $703 million bailout from Japanese government – November 11, 2016
Sharp President confirms Apple iPhone transition to OLED displays – October 31, 2016
Apple supplier Sharp names Foxconn exec as CEO to spearhead revival – May 12, 2016
Apple supplier Sharp preps AMOLED displays after Foxconn acquisition – April 6, 2016
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Japan Display, an Apple iPhone supplier, seeks financial help from Japanese government – August 9, 2016
Japan Display CEO hints at strong Apple orders ahead of new iPhone launch – September 3, 2015
Japan Display and Apple to build new $1.4 billion plant for iPhone Retina displays – March 6, 2015
Japan Display’s reliance on iPhone orders rises – June 24, 2014
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