Last month, a report suggested that Apple had helped in the bailout of Japan Display by reducing the repayment rate for the owed money. Japan Display has been a long-time LCD supplier for Apple, though it has been struggling to turn a profit for an equally long period of time. The company was supposed to be bailed out by a Chinese-Taiwanese consortium of TPK Holding and Harvest Group with a package of $740 million.
However, the latest report from China’s Caixin Global claims that Taiwan’s TPK Holdings — one of the five investors — who was supposed to help Japan Display with $230 million has withdrawn its offer. It is unclear if the other four partners who are to invest $510 million will proceed with their bailout package or not.
Japan Display announced a major layoff of around 1,200 employees earlier this month which has led investors to reconsider their investment. JDI seemingly owns a considerable sum of money to Apple which includes around $1.5 billion invested by the Cupertino company in setting up a factory for JDI four years ago. To repay the amount, JDI was to give Apple a percentage of its earnings from sales and despite four years, the company still owes 100 million yen.
With JDI still struggling to set up its OLED factory and the smartphone market quickly switching to OLED displays, the future of the company looks bleak. JDI has received numerous bailout packages in the past as well and yet it failed to turn the tide. Thus, given its past record, I don’t expect JDI to do wonders even if it receives the bailout package this time around.
[Via Caixin Global]