Japan Display (JDI) will launch a full-scale production of LCD panels for smartphones at the Baishan Plant in Baishan City, Ishikawa Prefecture, Japan in December. According to the original plan, the factory was originally scheduled to go into production in June, but was later postponed. The launch of mass production is to meet the increased production requirements of Chinese smart phone manufacturers that need ultra-high-definition panels. The current order is showing signs of recovery and will start a new factory with high production efficiency to improve profitability.
Japanese monitors have already started mass production preparation for LCD panels for the US Apple iPhone. In December, it will be put into production at a capacity of 3 to 40%. After the beginning of 2017, the production will be increased based on the observation of the order.
The construction of the Baishan Plant started in the spring of 2015, and Apple incurred a majority of the total investment of approximately 900 billion yen in total investment in the form of advance payment. In order to produce the panels used in the iPhone 7 listed in the fall of 2016, the construction of the project has been rapidly advanced.
However, due to the sluggish sales of the iPhone 6s listed in the fall of 2015, Apple lowered its production plan for the iPhone 7. Due to the failure to obtain the expected order, if the new factory is used, depreciation expenses will be incurred, so the Japanese display has delayed the start of the new factory. As a plan, Japan Display intends to produce iPhone panels at the Hakusan Plant, and mainly produces panels for Chinese smart phone manufacturers in the idle Mobara Plant in Chiba Prefecture.
However, after the summer of this year, orders for LCD panels from Huawei smartphone companies such as Huawei Technologies and Guangdong Opal Mobile Communications (OPPO) were strong, and the existing factories were difficult to cope with, so it was decided to use the Baishan factory.
The Japanese government, which is the largest shareholder of the Japanese government and the private joint venture fund "Japan Industrial Innovation Agency", is discussing financial support around Japan monitors that have been financially troubled by the reduction of orders after the beginning of 2016. However, the innovation agency said that “funding of working capital is not our responsibility†and it is difficult to support the support of the color.
As Japanese monitors use the high-efficiency Baishan plant and improve profitability, it is possible to make progress with the support of innovation institutions as support for investment in growth investment.
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