When Japan Display Inc broke ground on a new factory in central Japan in 2015, t...
TOKYO - When Japan Display Inc broke ground on a new factory in central Japan in 2015, the future looked bright for one of the world’s top vendors of liquid crystal display panels.
A slowdown in iPhone sales, combined with a proliferation of new iPhone models - many of which use newer organic light-emitting displays - have left Japan Display’s new factory running at half capacity. The company’s woes show how weak iPhone sales and a broader slowdown in the smartphone business are causing pain across the Asian electronics supply chain.
“Supplying components for just one model in massive volume is extremely cost-efficient,” he said. “At the same time, we exposed ourselves to huge volatility risks.” Sources at Japan Display and other Apple suppliers interviewed for the story declined to be identified as they are not authorised to talk to the media. Suppliers rarely speak about business with Apple on the record because of strict non-disclosure agreements.Japan Display was formed in 2012 in a government-backed merger of the ailing display units of Sony Corp, Toshiba Corp and Hitachi Ltd.
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