Screen manufacturer Japan Display has found enough new investors to avert bankruptcy. The company, one of the largest producers of iPhone screens, found itself in financial distress after several investors pulled out.
Japan Display announced on Friday that a number of investors, led by the Chinese investment firm Harvest Group, have pledged 80 billion yen or 655 million euros to save the screen manufacturer from bankruptcy. About 89 million euros of that amount comes from a customer of Japan Display, the company reports. According to Reuters news agency, it would be Apple, which last year accounted for 60.6 percent of the screen manufacturer’s turnover.
Japan Display’s future became uncertain when some investors, including Taiwanese display manufacturer TPK Holding, decided in June not to go through with a planned rescue. Should Japan Display run into trouble again despite the new investments, at least one of the investors, Hong Kong’s Oasis Management, would be willing to put extra money into the screen manufacturer.
Japan Display 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 have switched to OLED panels for smartphones. These are not yet produced in large numbers by the Japanese company.