Apple is said to have given screen manufacturer Japan Display $100 million to prevent the company from ceasing its operations. Japan Display, one of the largest producers of iPhone screens, has been in turmoil after several investors pulled out.
According to Bloomberg, Apple has come to the rescue of the Japanese company after three major investors decided not to go ahead with a planned $1.1 billion bailout. First, Taiwanese TPK Holding Co. withdrew, shortly after Cosgrove Global Ltd and Topnotch Corporate Ltd. Bloomberg relies on a source who is familiar with the matter, but who wishes to remain anonymous.
Two other investors, Harvest Tech Investment Management Co. and Oasis Management Co. continue to discuss financial support, Japan Display said in a statement. The company has since received investment commitments of $300 million, including $100 million in support from Apple. However, the company is still waiting for a decision about an investment of 150 million dollars from Oasis Management Co. Japan Display says it will continue talks and will conclude a bailout deal before December 30 to avoid bankruptcy.
Following the withdrawal of TPK Holding Co. Shares Japan Display fell to a low on June 17, before rising 18 percent again after it became clear that Apple was considering financial support. The company has been in the red for the past five years. According to analysts, this is partly due to the shrinking smartphone market and, on the other hand, because manufacturers such as Apple, Japan Display’s largest customer, have switched to OLED panels. These are not yet produced in large numbers by the Japanese company.