Struggling Apple display maker Japan Display has successfully secured bailout funding of 80 billion yen ($738 million).
The funding comes from a Chinese investment group Harvest Group and Hong-Kong based Oasis Management. It was previously reported that Apple would be part of this bailout package — to the tune of $100 million.
Japan Display says that it will hold a shareholders meeting on August 29 to formalize the deal. Taiwanese screen maker TPK Holding and financial firm CGL Group dropped out of the rescue bid back in June.
The trials and tribulations of Japan Display
Japan Display has been struggling for some time now. A big challenge it faced was Apple’s decision to move away from LCD displays, in favor of OLED screens. While Japan Display provided the LCD displays for the iPhone XR, it’s clear that this is a shrinking part of Apple’s business.
Apple currently represents 60% of Japan Display’s sales. Fortunately, for Japan Display, it seems that Apple is willing to throw it a lifeline.
In addition to the reported $100 million investment, it has also awarded Japan Display OLED orders for an upcoming Apple Watch. This is the first time Japan Display will have made OLED screens for Apple.
Part of the reason for Apple’s benevolence may be the fact that it previously supplied funding for Japan Display to build a factory in Japan to make iPhone panels. As of now, it still owes Apple around 100 billion yen. A recent Wall Street Journal report said that Apple make renegotiate repayment terms to offer assistance.