Apple supplier Japan Display Inc. gets another bailout, this time worth $830 million
What you need to know
- Apple LCD supplier Japan Display Inc. is to receive another bailout.
- Ichigo asset Management will inject $830 million into the company.
- The move will give Ichigo effective control of the company but should keep it afloat for now.
Apple's ailing supplier of LCD screens, Japan Display Inc., is set to receive yet another bailout to try and steady its ship.
As reported by Reuters, the company is set to receive a cash injection of 90 billion Yen ($830 million) from Ichigo Asset Management.
The move means that effective control of the company will pass to Ichigo, which joins Apple and Taiwan-based manufacturer Wistron Corp in the bailout. According to the report, the commitment has steadied the nerve of investors:
As Reuters notes, Apple is not known for intervening in the fortunes of its suppliers, however, it has been happy to pour cash into Japan Display Inc. this past six months. The report further notes that the manufacturer is to begin producing OLEDs for Apple Watch, as Apple seeks to diversify its supply of the tech, currently exclusively produced by LG. As part of the move, Ichigo CEO Scott Callon will join Japan Display as co-chairman.
Japan Display's chief exec, Minoru Kikuoka said of the move:
Some $200 million of financial support has been promised by "a customer" sources believe to be Apple. Apple is owed roughly $800 million by Japan Display, money that was used to build a plant at the cost of $1.5 billion. The company has reported 11 consecutive quarterly losses, and recently announced it would be reviewing its past earnings after it emerged that an executive had embezzled $5 million from the company.
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Stephen Warwick has written about Apple for five years at iMore and previously elsewhere. He covers all of iMore's latest breaking news regarding all of Apple's products and services, both hardware and software. Stephen has interviewed industry experts in a range of fields including finance, litigation, security, and more. He also specializes in curating and reviewing audio hardware and has experience beyond journalism in sound engineering, production, and design.
Before becoming a writer Stephen studied Ancient History at University and also worked at Apple for more than two years. Stephen is also a host on the iMore show, a weekly podcast recorded live that discusses the latest in breaking Apple news, as well as featuring fun trivia about all things Apple. Follow him on Twitter @stephenwarwick9
Interesting that they would do this. They apparently want this supplier to stay afloat. It can enable them to not depend on China as much for sure with this mindset.