JDI Puts a Hold On Its OLED Production Plans
April 09, 2018
Japan Display held a 2nd call for those that were unable to attend their original call explaining the restructuring and financing that they are implementing. They emphasized:
JDI’s solution to the ‘slow death spiral’ that the company has found itself in, depends on their ability to produce a bezelless product that is both cost effective and desirable by the 2nd half of the fiscal year, and convince investors that they can repeat the process in 2019, even as the OLED capacity grows in Korea and China. They reported restructuring losses, which will be less than originally expected (originally 171b¥, now 100b¥ to 120b¥ due to Nomi sale, less capex, and what they expect will be a better business environment later this year), and financing seems to be in place, but customer relationships will be key and will determine whether the company can survive through fiscal 2019. JDI has already lost the smartphone business with China’s OEMs and will soon face the onslaught of low cost rigid OLEDs from China. Their current hope is that Apple will continue to make some iPhones with LCD panels.