Screen maker Japan Display Inc. (JDI) said Monday that Taiwan’s TPK Holding will withdraw a proposed $230 million bailout, exacerbating capital pressure on the troubled Japanese Apple supplier.
The statement comes two months after a consortium including TPK proposed investing a total of 80 billion Japanese yen ($737 million) in JDI, according to JDI’s statement.
At least four other consortium members have yet to confirm their investment, JDI said.
The Japanese display maker has struggled to remain afloat after it failed to follow an industry shift towards organic light-emitting diode (OLED) displays. The company reported a loss of $2.3 billion in 2018, widened from $260 million the year before, due the lackluster sales of Apple’s iPhone XR. According to the Financial Times, iPhone XR is the only recent Apple model using displays from the Japanese supplier, as other models use OLED.
Chen Hui, vice president of industry research firm AVC Revo, said JDI owes huge sums of money, which it borrowed from its largest client Apple before March this year.
JDI’s massive layoffs announced earlier this month may also have prompted TPK to reconsider its investment, Chen said.
Contact reporter Tang Ziyi (email@example.com)