Apple supplier Japan Display will sell its smartphone screen factory to Sharp for nearly $400 million in a bid to ease its debt to Apple, Nikkei Asian Review reports. Per the report:
TOKYO — Struggling Apple supplier Japan Display plans to sell a smartphone screen factory and the land it occupies to Sharp for about 40 billion yen ($377 million), a person familiar with the matter told Nikkei.
A deal for the Hakusan liquid crystal display plant in Ishikawa Prefecture, along with the planned sale of equipment there to a customer believed to be Apple, are expected to earn Japan Display a total of 70 billion yen while cutting excess capacity that has weighed on its earnings.
JDI initially began operations of the plant in 2016 following a “prepayment” for construction by Apple which accounted to ¥170 billion. The factory has the capacity to produce 7 million smartphone displays per month, but the initial momentum quickly died down. Sharp’s factory in Kameyama, currently used for smartphone displays will likely switch to automotive and medical equipment per the report.