ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintSite TitleTitle ChevronIcon Twitter
Business deals

Japan Display in talks with Apple and Sharp to sell factory

Sale of entire facility seen to help turnaround efforts of struggling maker

JDI's factory in Ishikawa Prefecture has not been turning out displays since July due to poor sales. (Photo by Ken Kobayashi)

TOKYO -- Japan Display is in talks with Apple and Sharp to sell its main Hakusan factory in Ishikawa Prefecture, multiple sources told Nikkei on Friday.

Japan Display, commonly known as JDI, has been restructuring its business and suspended display production at the factory in July due to poor sales.

The company hopes sale of the plant will help its turnaround efforts. Apple and Sharp are still considering how to share stakes in the facility.

JDI said in a statement on Friday that the company is "considering a wide range of options" regarding the Hakusan factory.

On Dec. 12, JDI announced that it was in the final stage of talks with a potential buyer -- likely Apple -- of equipment at the Hakusan plant for about $200 million.

It now appears that the scope of the talks has shifted to sale of the entire facility, including land and buildings.

Sources say that JDI is negotiating with Apple to sell the factory for 80 billion to 90 billion yen ($730 million to $820 million).

JDI was hit by fierce competition from rivals' production of liquid crystal displays. Sharp's production had risen due to strong demand for Apple iPhones.

JDI's Hakusan factory went online at the end of 2016, mostly producing LCD panels for iPhones. However, output plummeted after the U.S. tech giant switched mostly to next-generation OLED displays for its gadgets.

The plant is one of JDI's biggest factories. Apple paid nearly half the plant's 170-billion-yen construction cost in advance.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends July 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media