Japanese display panel maker Japan Display is finalizing a deal to sell its main lcd panel factory to sharp to reduce its debt to apple.The struggling Apple partner considered selling the plant as early as 2019 to pay off its debt to apple. Apple had previously provided a $1.5 billion "advance payment" to Japan display for the construction of the plant.
According to the latest news, Japan display is refining its deal to sell the plant and its land to sharp, a subsidiary of Foxconn. The value of the deal is estimated to be about 40 billion yen (about $375 million).
According to reports, the factory sold $200 million worth of LCD panel production equipment to a customer on March Japan Display. The client is thought to beApple。 This week, it was reported that Japan display had sold the customer a total of $281 million worth of equipment.
Sharp plans to use the plant to integrate LCD panel production for Apple iPhone while leasing production equipment from Apple. Sharp's factory in Kikuchi, Japan, will be transformed to produce panels for customers in the automotive and medical equipment fields. The factory can produce up to 7 million display panels per month.
Japan Display the plant was scheduled to be sold by the end of march, the global spread of the new crown virus has affected negotiations.
Overall, selling the plant to Sharp and selling the production equipment to another customer could net Japan Display about 70 billion yen. As of March 2020, Japan Display allegedly still owed Apple about $800 million.