Author: MoneyDJ | Published on: February 13, 2025, 10:15 AM | Category: International Trade, Components, Panels

Japan Display Inc. (JDI), a Japanese manufacturer of small- and medium-sized display panels, is considering selling its Mobara factory and converting it into an AI data center. JDI also announced a partnership with Taiwan’s Fulong Electronics (PanelSemi), planning to invest in the company.

In a press release on the 12th, JDI revealed that the Mobara factory in Chiba Prefecture, which produces LCD/OLED panels, will cease production in March 2026. The company is now considering selling the factory and plans to convert it into an AI data center. JDI is in discussions with several companies that have a demand for AI data centers. JDI stated that after the shutdown of the Mobara factory, it expects to reduce fixed costs by up to 25 billion yen annually.

Following the shutdown, production equipment will be moved to the Ishikawa factory, which will become a MULTI-FAB facility capable of producing high-value-added G4.5+G6 panels, sensors, and advanced semiconductor packages. The Mobara factory was originally a production site for Apple’s iPhone LCD panels, but with Apple switching to OLED panels, the factory’s utilization rate fell to around 40%. JDI previously had six factories in Japan, but after the Mobara factory shuts down, it will be reduced to just the Ishikawa factory.

JDI also announced that, with the decision to shut down the Mobara factory in March 2026, it will recognize an impairment loss of 20.363 billion yen for equipment in its third-quarter financial results for the fiscal year 2024 (October-December 2024). Additionally, with the Tottori factory set to stop panel production by the end of March 2025, a business restructuring cost of 2.405 billion yen will be recognized. As a result, JDI has revised its projected consolidated net loss for the fiscal year (April 2024 - March 2025) from 39.3 billion yen to 62.068 billion yen, marking the 11th consecutive year of losses. The consolidated revenue target remains at 180 billion yen, with the operating loss forecast unchanged at 26.4 billion yen.

On the 12th, JDI also announced a memorandum of understanding (MOU) with Taiwan’s Fulong Electronics, a company involved in advanced semiconductor packaging and sensor technologies. The MOU covers JDI’s investment in Fulong and future cooperation. Once approval is obtained from Taiwanese authorities, JDI plans to invest in Fulong Electronics. Fulong Electronics is an investment arm of Innolux.

Additionally, JDI disclosed that it has entered into a capital and business cooperation agreement with OLEDWorks, a U.S. OLED panel developer and manufacturer. The two companies will discuss establishing an advanced panel factory in the U.S., expected to supply OLED panels for defense, automotive, and medical applications.

(This article is authorized for reprint by MoneyDJ News; main image source: JDI)