It is reported that Japan Display, a troubled Apple LCD monitor supplier, said that the company has agreed to receive $2.1 billion in rescue funds from a certain Taiwanese group. Although the deal saved the Apple display maker, it marked the failure of the Japanese government to stop the company from falling into the hands of non-Japanese.
Japanese monitors have provided Apple with LCD panels for many years, but due to Apple's move to OLED display technology, it faces financial challenges. Since then, the company has been actively seeking investment in order to enter the OLED field.
The groups that provide assistance include Taiwan's display panel manufacturer Shun Hong Technology and China Asset Management Company Harvest Group. The bailout plan includes injecting up to 80 billion yen into the company through stocks and bonds. It is expected that the group will purchase 49.8% of the shares of the Japanese display through the bailout fund, which is close to having majority control.
Part of the dilemma that Japanese monitors have encountered this year comes from an agreement signed with Apple in 2015 to build a new LCD panel factory. The $1.5 billion project was funded primarily by Apple to gain access to LCD panels. However, Apple's recent shift to OLED panels has also led to lower-than-expected LCD panel orders.