Japan Display Confirms New $1.4 Billion LCD Plant for Apple
According to a Reuters report, Japan Display has today confirmed its plans to build a new $1.4 billion liquid crystal display (LCD) manufacturing plant, in an effort to become Apple’s primary display supplier. Last month, the same source reported that Japan Display is seeking a partnership with the Cupertino giant in building a display manufacturing plant, which would be populated with its employees working only on screens for Apple’s devices.
The report claims that Apple will also invest in the plant, which will be built in Ishikawa, central Japan, and will cost around 170 billion yen (roughly $1.4 billion). Japan Display has also said that it aims to start operations at the plant in 2016 and expects the move to increase its LCD capacity by 20%.
“The company did not name Apple, in line with its policy of not identifying clients. A person familiar with the matter said Apple would also invest an unspecified amount in the plant, which would further the Japanese screen maker’s aim of becoming the primary supplier of high-tech screens for iPhones. The source declined to be named as the investment details remained confidential”.
Japan Display, which has been struggling financially for the past couple of years, has recently reported a rebound to profit, boosted by demand from Apple and Chinese smartphone makers.