The smartphone screen maker Japan Display Inc, on Friday, said that it would be receiving an investment worth $100 million from one of its customer, which Reuters citing sources said would be Apple Inc, making investment being part of a bailout deal to which a Chinese investment firm will be leading.
Apple’s recent strategy of shifting away from liquid-crystal displays (LCDs) has caused the Japan Display to face lack of funding, as the sales of Apple’s only LCD model in 2018 line-up i.e. iPhone XR remained disappointing.
In its last financial year ended March 2019, about 60.6 percent of Japan Display’s revenue was comprise of business with Apple, but iPhone maker is now reportedly joining a consortium led by Chinese investment firm Harvest Group in investing up to 80 billion yen ($743 million), reported Reuters citing a person briefed on the matter.
Apple declined Reuters request for comments.
In its statement, Japan Display said that Harvest has officially been came to a decision of making investment of $500 million, which also include $100 million from the customer, identity of which has not yet been disclosed.
Oasis Management, a Hong Kong-based activist investor, is another member in the consortium with an intention of investing $150 million to $180 million, said the Japanese company on Friday in a separate statement, but that investment is attached with the condition of not cutting large cuts from a major customer.
The Japanese company is still busy approaching other potential investors convincing them to join the deal as the total of investments from Apple, Oasis and Harvest is still not meeting the Japan Display’s target of $743 million.
Japan Display is in debt of $900 million to Apple as an amount of $1.5 billion was lent by the Japanese company from iPhone maker four years ago for constructing a smartphone screen plant.