US, Japan to with Japan Display for New US Plant
Reports indicate that Tokyo and Washington are considering establishing a display factory in the U.S. in collaboration with Japan Display as a component of Japan's proposed $550 billion investment initiative.
The initiative focuses on bolstering U.S. display manufacturing due to Washington's worries about dependence on China for display technologies utilized in military systems, especially when intense price competition has driven many Japanese manufacturers from the market.
Japan Display chose not to provide a comment. Its stock jumped 80 percent on Monday, bringing the long unprofitable firm’s worth to 190 billion yen ($1.2 billion).
Nikkei Asia was the first to report the news, indicating that the project is anticipated to have a value of approximately $13 billion.
The display project is part of various agreements being talked over between the United States and Japan, according to reports.
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Reuters has stated that both parties are collaborating to add a nuclear power initiative with Westinghouse in a second wave of agreements linked to the investment pledges Tokyo established in its tariff deal with the U.S.
Japan Display, created in 2012 through a government-supported merger of the display divisions of Sony Group, Toshiba, and Hitachi, was previously one of the leading global suppliers of liquid crystal display (LCD) panels and the main screen provider for Apple's iPhones.
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Yet, Apple's transition to organic light-emitting displays (OLED), along with pricing pressure from Chinese competitors, has caused Japan Display to face losses for over ten years.
The firm is streamlining its local factories to concentrate resources on car displays and is halting OLED panel manufacturing for the Apple Watch.
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The Japanese government poured over 460 billion yen into Japan Display but withdrew last year, incurring a loss of roughly one-third of its investment.
Research agency Counterpoint predicts that China will maintain its lead in global display capacity, increasing its share from 68 percent in 2023 to 75 percent in 2028.