Apple supplier Japan Display forms alliance with China’s HKC on chip fabs, auto displays

[beijingwalker]

Japan Display forms alliance with China’s HKC on chip fabs, auto displays​

MON, APR 10, 2023 - 11:38 AM

Semiconductors

Japan Display was formed in 2012 when the LCD businesses of Hitachi, Toshiba and Sony merged in a government-brokered deal.

PHOTO: REUTERS

JAPAN Display said on Monday (Apr 10) it has formed an alliance with China’s HKC Corporation (HKC) to cooperate on next-generation Oled technology, chip fabrication, and auto displays, sending the Japanese company’s shares 10.5 per cent higher.

Japan Display and HKC will jointly plan and build fabs using Japan Display’s eLEAP Oled technology, targeting mass production in 2025, the Japanese company said.

Japan Display is planning more than one plant under the alliance with HKC, chief executive Scott Callon told a briefing, adding the tie-up would bring together Japan Display’s technology and HKC’s cost competitiveness.

Japan Display, a maker of phone and computer displays, is on a restructuring drive to turn around its struggling businesses.

The company is majority-owned by Cayman Islands-based Ichigo Trust. Callon is also the head of Ichigo Asset Management, an affiliated Japan-focused investment manager.

Japan Display was formed in 2012 when the LCD businesses of Hitachi, Toshiba and Sony merged in a government-brokered deal. REUTERS

https://www.businesstimes.com.sg/companies-markets/japan-display-forms-alliance-chinas-hkc-chip-fabs-auto-displays

 

[beijingwalker]

Apple supplier Japan Display teams up with China's HKC as it seeks turnaround​

By Kiyoshi Takenaka

Japan Display Inc's logo is pictured at its headquarters in Tokyo, Japan, August 9, 2016. REUTERS/Kim Kyung-Hoon/File Photo

TOKYO, April 10 (Reuters) - Japan Display Inc (6740.T) will team up with China's HKC Corporation Ltd to co-operate on next-generation technology for displays, it said on Monday, as the Apple Inc supplier looks to turn around its struggling business.

News of the tie-up, coming against the backdrop of Washington's recent push to curb China's ability to make advanced chips, sent Japan Display's shares up more than 13%, putting them on track for their biggest one-day gain in a year.

Formed a decade ago when the LCD businesses of Hitachi Ltd (6501.T), Toshiba Corp (6502.T) and Sony Corp (6758.T) merged in a government-brokered deal, Japan Display has been selling assets in a drive to return to profit after years in the red.

There was a possibility for a capital tie-up in future, Chief Executive Scott Callon told a briefing in Tokyo, adding that the alliance was likely to build more than one new plant in China.

"This is not just a business alliance, but a significant strategic alliance," Callon said, adding that the move would bring together Japan Display's technology and HKC's cost competitiveness and large production capacity.

The two companies will jointly plan and build fabs using Japan Display's eLEAP OLED technology, targeting mass production in 2025, the firm said.

HKC did not immediately respond to a request for comment.

Last month, Japan said it would curbs exports of 23 types of semiconductor manufacturing equipment, though without specifying China as the target, but adding that manufacturers would need to seek export permission for all regions.

Queried about the curbs, Callon said Japan Display would not be making capital investments in new plants, adding that its products were for commercial use and would probably not be affected.

"I don't think there are any security issues," he said.

The company makes the small displays used in smartphones, cars and other products.

It is majority-owned by Cayman Islands-based Ichigo Trust. Callon is also the head of Ichigo Asset Management, an affiliated Japan-focused investment manager.

Apple supplier Japan Display teams up with China's HKC as it seeks turnaround

Japan Display Inc will team up with China's HKC Corporation Ltd to co-operate on next-generation technology for displays, it said on Monday, as the Apple Inc supplier looks to turn around its struggling business.

www.reuters.com