JDI in Japan seeks to fund BOE or become a partner

Japan Display Inc. (JDI), a company that has been struggling with continuous losses, is now actively seeking financial support from banks and its largest shareholder. The aim is to secure funds for restructuring its business operations, with the majority of the resources expected to be allocated to factories in Ishikawa Prefecture and China. This move is part of broader structural changes, including workforce reductions and operational cost management. In August, Japan Display announced plans to restructure its core business by introducing external capital. By October, the company had begun evaluating potential partners among overseas competitors, including the Hon Hai Group (Foxconn) in Taiwan and Chinese firms such as BOE and Tianma Microelectronics. These partnerships are seen as critical for JDI’s long-term survival and competitiveness in the global display market. Historically, Japan was cautious about the transfer of high-tech technologies to China, fearing it could weaken domestic industries. This concern intensified after Toshiba sold its semiconductor business, leading to increased scrutiny of Japanese companies collaborating with mainland Chinese firms or those with close ties to them. A recent image shows BOE, one of JDI's key partners, highlighting the growing importance of Chinese technology firms in the global display sector. With massive investments required in the industry, it has become increasingly difficult for Japanese companies to find local partners. As a result, companies from mainland China, South Korea, and Taiwan are becoming more attractive options. Reports indicate that besides BOE, major Chinese panel manufacturers like CSOT have also expressed interest in partnering with JDI. Once a joint investment partner is selected, JDI plans to finalize its business restructuring strategy, including capital injections, by March 2018. The company’s executives have stated that they are open to receiving funding from multiple sources. The Japan Innovation Agency, which holds 36% of JDI’s shares, is expected to gradually reduce its stake. This shift could lead to a significant transformation in the company’s ownership structure by 2018, signaling a new phase in JDI’s recovery efforts.

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