JDI announces capital increase of 110 billion yen

According to Jiwei.com, recently, Japan's small and medium-sized liquid crystal panel (LCD) giant JDI (Japan Display Inc.) was affected by Apple's orders. In 2018, JDI's mobile phone panel shipments were about 119 million units, a year-on-year decline of 28%, setting a historical low for shipments since 2015.

On March 30, Japanese media reported that JDI was considering increasing its capital by 100 billion yen.

On April 1, JDI announced that it was negotiating to accept a total of more than 110 billion yen (about 6.6 billion yuan) in capital injection from a consortium of Chinese and Taiwanese companies and the public-private fund INCJ, and was striving to reach an agreement within this week.

In fact, as early as March 24, JDI insiders reported that the company still owed Apple most of the construction costs, but refused to disclose the specific amount. Two people familiar with the matter said that JDI, which is in urgent need of funds, is seeking financial assistance from an investor group led by China's Silk Road Fund. Sources said that the Chinese investment group plans to invest US$500 million to US$700 million in JDI and obtain a near-majority stake in the latter.

According to a report by Jiji Press and NHK on March 30, JDI is considering accepting investment from the Taiwan-China alliance organized by China's Harvest Fund, Taiwan's TPK-KY and Minth Group. The investment negotiations between the two parties have entered the final stage. In addition, JDI will also receive additional financial assistance from INCJ. The funds raised will mainly be used to purchase materials needed to produce Apple's latest iPhone models and to repay loans.