(Yicai Global) April 8 -- Japan Display, a joint venture between Sony, Toshiba, and Hitachi, is looking for Chinese investment to bring much-needed stimulus for its under-performing organic light-emitting diode production
The Tokyo-based Apple display provider will confirm details of a USD1 billion investment deal this 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 comprising government refinancing.
China's State Administration 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 is a key supplier for Apple, the California-based electronics giant bought over one-third of its displays from the company last year. However, the JV only provides liquid crystal displays 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 display sectors and boost its presence globally, Chen said, adding that JDI is 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 display makers in China has become increasingly fierce over recent years.
Editor: William Clegg