Japan Display (JDI) intends to sell LCD subsidiary Kaohsiung Opto-Electronics to Taiwanese electronics assembler Wistron. The deal is worth about $ 72.3 million. This was announced by the Japanese flat panel maker itself, which is experiencing financial difficulties and is trying to overcome them by cutting operating costs through a series of asset sales.
The contract with Wistron stipulates that JDI will continue to order from Kaohsiung Opto-Electronics to manufacture LCD modules for automobiles and industrial equipment.
The parties hope to complete the deal between September and December this year. Of course, first you need to get regulatory approvals.
Subsidiary JDI had sales of $ 339 million in 2020. Even after the production is sold, JDI will retain its design and marketing capabilities.
In 2020, JDI sold its partially idle plant in Hakusan in Ishikawa Prefecture, Japan, to Sharp and another customer. Nevertheless, the company ended the last financial year, which ended in March 2021, with a net loss. This is her seventh unprofitable year in a row.