The tl;dr version: as the landscape of the display manufacturing industry evolves, this strategic alliance between Japan Display (JDI) and HKC is a notable development as supply chains are reshaped, new alliances forged, and Asian companies figure out how to work around US sanctions on the sale of certain high tech products into China. HKC gets the technology it needs, and JDI overcomes its own financial shortcomings to get cheaper manufacturing support.
JDI has announced a strategic alliance with China’s HKC to cooperate on next-generation technology for displays. This move comes as JDI seeks to revitalize its business and return to profitability after years of financial struggles. Formed a decade ago from the merger of Hitachi, Toshiba, and Sony’s liquid crystal display businesses, JDI has been working to sell assets and improve its financial position.
During a recent briefing in Tokyo, according to Reuters, JDI’s CEO Scott Callon mentioned the possibility of a future capital tie-up between the two companies. He emphasized that the partnership is a significant strategic alliance that combines JDI’s technological prowess with HKC’s cost competitiveness and large production capacity. As part of the alliance, the companies plan to jointly build fabs using JDI’s eLEAP OLED technology, targeting mass production in 2025.
Callon also addressed concerns about Japan’s recent export curbs to China on 23 types of semiconductor manufacturing equipment. He said, JDI would not be making capital investments in new plants, and their products are primarily for commercial use, which is unlikely to be affected by the export restrictions.
