Apple supplier Japan Display is considering seeking a possible capital injection from strategic investors and buyout funds to help finance a shift from its ailing LCD smartphone business to OLED technology, widely believed to be adopted by Apple’s premium iPhone 8 model.
“The company has been hurt by its late entry into organic light-emitting diode screens (OLED) and fluctuating demand for Apple’s iPhones,” reads the report. A source said Japan Display was also seeking 100 billion yen last month from its main creditors to help pay for restructuring.
According to a Nikkei business daily report Tuesday, cited by Reuters, the company is even considering axing 3,500 jobs in an effort to consolidate operations.
Last year, Japan Display received 75 billion yen, which works out to approximately $677 million, from the state-backed Innovation Network Corp of Japan (INCJ). Japan Display was formed five years ago from the ailing display-making units of Sony, Hitachi and Toshiba.