It is difficult to build a factory in China, JDI is struggling to find a sponsor

According to reports in April, JDI and the Taiwan-China alliance are planning to build an OLED panel factory in China. Earlier, JDI President Yoshiyuki Tsukizaki said at a press conference that JDI will start mass production of OLED panels at the Mobara factory this summer.

According to the Asahi Shimbun, several people familiar with the matter pointed out that JDI's plan to build an OLED panel factory in China may not be recognized by the Chinese government. China Harvest Technology originally agreed to invest in JDI on the premise of mass production of OLED in China. Therefore, as the prospects of the OLED mass production plan are unclear, Harvest Technology has begun to show hesitation about investing in JDI, and its attitude has become more cautious and its willingness to invest has decreased.

The report pointed out that of the 60 billion yen in funds that the Taiwan-China alliance plans to provide to JDI (excluding the 20 billion yen convertible corporate bonds that may be subscribed for), Harvest Technology will provide 20.7 billion yen (accounting for 34.5% of the total), TPK 25.1 billion yen (41.8%), and CGL Group 14.2 billion yen (41.8%).

It is reported that two Taiwanese companies have asked JDI to find additional investors as a condition for providing rescue to JDI. Although JDI has explored the possibility of investment from overseas investment funds, it has not yet found new investors.

Regarding the above-mentioned Asahi Shimbun report, JDI issued a press release on the 23rd to deny it, saying that the above news was not released by JDI and was not true.

It is understood that on May 21, Taiwan's touch panel manufacturer TPK also stated that it may make a final decision on reaching an investment agreement with Japan Display (JDI) before the end of the year.

In addition, the Asahi Shimbun reported earlier on the 18th, citing multiple sources, that the Taiwan-China alliance, composed of Taiwan's TPK, Fubon Tsai family private company and China Harvest Technology Investment Management Company, found that JDI's operating conditions were worse than expected during the review of JDI's assets, so it required the addition of new investors, and this new investor must invest tens of billions of yen, otherwise the Taiwan-China alliance may terminate the negotiations.