Japan's leading display company Japan Display Inc. (JDI) announced on the 13th that it is reviewing the sale of its main factory.
According to local media including the Nihon Keizai Shimbun, on that day, JDI said it plans to cease production at its main liquid crystal panel factory, the Mobara plant in Chiba Prefecture, in March of next year and transfer the production equipment to its factory in Ishikawa Prefecture. About 1,300 employees are expected to be reassigned to other locations, including the Ishikawa plant.
The Mobara plant was once a production hub for liquid crystal panels for Apple's iPhone, but currently, following Apple's shift to organic light-emitting diode (OLED) displays, it has been producing liquid crystal panels for vehicles and is operating at around 40% capacity. JDI announced it will withdraw from the liquid crystal panel business for smartphones in 2023.
JDI plans to consolidate display production at the smaller Ishikawa plant and collaborate with Taiwanese corporations and others to promote new businesses such as semiconductor packaging and sensors. Additionally, it has begun discussions with U.S. company OLEDWorks with the aim of establishing a new OLED production facility in the United States.
Founded in April 2012 with public funds from the Innovation Network Corporation of Japan (INCJ), a public-private fund under the Ministry of Economy, Trade and Industry, JDI was formed by integrating the LCD panel businesses of Hitachi, Toshiba, and Sony. At its inception, it was noted as a company that would lead the revival of Japan's display industry, referred to as the 'Hinamaru liquid crystal union.' However, as competitors from South Korea and China rose, JDI has struggled in the global market.