One of the providers of iPhones, Japan Display, reportedly will receive a $ 636 million bailout from its largest shareholder (Innovation Network Corp).
Japan Display has gone through a rough patch in recent times, partly because of its heavy reliance on Apple, which saw its first annual decline in iPhone sales this year, but also due to price competition and the growing importance Of OLED technology instead of LCD.
In fact, the company revealed that it plans to spend the money on the development of its OLED business. This includes the purchase of a majority controlling stake in Joled, a development center created from the merger of departments previously regulated by Sony and Panasonic. Innovation Network Corp (who paid the bailout) currently owns 75 percent of Joled, but Japan Display is increasing its share of 15 percent to 51 percent.
CEO Mitsuru Homma said his company will also reduce its reliance on mobile orders by increasing sales in other categories such as vehicles, laptops and VRs to more than 50% of its business.