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Japan, US Eye Display Factory in America
9 Mar
Summary
- US and Japan plan a joint display factory with Japan Display.
- The project aims to reduce reliance on China for military tech.
- This initiative is part of Japan's $550 billion investment package.
Tokyo and Washington are exploring the possibility of establishing a display manufacturing facility in the United States, in collaboration with Japan Display. This venture is reportedly part of a significant $550 billion investment package planned by Japan. The strategic aim is to enhance display production capabilities within the U.S., addressing concerns about over-reliance on China for crucial display technologies, especially those used in military applications.
The proposed project is said to be valued at approximately $13 billion. It represents one of several potential deals under discussion between the two nations. Japan Display, formerly a major supplier for Apple's iPhones, has experienced financial difficulties due to intense price competition from Chinese manufacturers and Apple's transition to OLED displays.
As a result of these market pressures and technological shifts, Japan Display is currently consolidating its domestic operations to concentrate on automotive displays. The company is also ceasing its OLED panel production for devices like the Apple Watch. Despite past government investment, the company has faced substantial losses, leading to a government exit from its investment last year.
