Japan Display is looking to finalize a deal this month for least 50 billion yen (about $470 million) in funding after an investment group suddenly pulled out of a bailout plan for the Apple supplier, reports Reuters. As a result, Apple may double its investment in the company.
Apple apparently looks to invest $200 million, double the amount it previously planned. Hong Kong-based Oasis Management will also contribute $150-180 million.
As Reuters notes, a collapse of Japan Display would hurt Apple’s ability to deliver competitive pricing for the iPhone 11. It might also force the tech giant to turn to rival suppliers for liquid crystal displays (LCD) and increase its reliance on Samsung Display for organic light-emitting diode (OLED) screens.
Japan Display is an LCD technology joint venture by Sony, Toshiba, and Hitachi. For the past several years, it’s had its share of financial woes as it dealt with the rise of low-cost regional rivals, underestimated an industry shift towards organic light-emitting diode (OLED) display, and an inability to break its smartphone reliance on Apple.