(Yicai Global) April 8 -- Japan Dplay, a joint venture between Sony, Toshiba, and Hitachi, looking for Chinese investment to bring much-needed stimulus for its under-performing organic light-emitting diode production>/n/n/n/n/nThe Tokyo-based Apple dplay provider will confirm details of a USD1 billion investment deal th week, according to a statement, with China's Silk Road Fund participating in the deal. Around three-quarters of the financing comes from external parties with the remainder compring government refinancing.
China's State Admintration of Foreign Exchanges makes up 65 percent of the Silk Road Fund, with China Investment Corporation and the Export-Import Bank of China each holding 15 percent stakes. China Development Bank constitutes the remaining 5 percent.
JDI a key supplier for Apple, the California-based electronics giant bought over one-third of its dplays from the company last year. However, the JV only provides liquid crystal dplays at present and it has run into operational difficulties as Apple transitions to OLED technology, according to Chen Jun, vice general manager at Beijing-based Sigmaintell Consulting.
The Silk Road Fund investment will strengthen the partnership between China and Japan's dplay sectors and boost its presence globally, Chen said, adding that JDI actively positioning itself as a flexible OLED technology provider. It will also accelerate investment in OLED operations in China's mainland and aims to stabilize the Apple partnership.
Set up in 2012, the JV has posted losses for fourth straight years, including JPY10.6 billion (USD94.9 million) for the first three quarters last year after Apple cut its purchase orders for LCD screens and expanded its use of OLEDs. Competition among dplay makers in China has become increasingly fierce over recent years.
Editor: William Clegg