In a critical bailout for an Apple supplier that has been dependent on a series of publicly-funded rescues, Japan Display said on Friday it had inked a deal for up to 100.8 billion yen ($918.87 million) from Ichigo Asset Management.
The bailout comes as Apple, which sources LCD panels for iPhones from Japan Display, has shown its commitment to financially support Japan Display, which sources said reassured other investors. The U.S. tech giant has agreed to shorten payment periods, relax debt repayment terms and put up $200 million. Japan Display generated 61% of its revenue from Apple in the last financial year.
Apple is also leading talks on the potential sale of Japan Display’s idled smartphone screen factory to Sharp Corp, another iPhone display supplier, sources familiar with the matter said.
Japan Display owes Apple more than $800 million for the $1.5 billion cost of building the plant four years ago.
MacDailyNews Take: Hopefully, this one does the trick. Apple needs more display sources for competition to work its magic, not fewer!
