In a bailout that may be reminiscent of days not long ago when the government came to the rescue of any number of firms during the Great Recession, an Apple supplier may be on the prowl for a lifeline.
The company is Japan’s largest panel maker and is also a provider for iPhones. Revenues have been down by double digits, as evidenced by the September quarter, where the top line was off 25 percent.
The Wall Street Journal reported that the supplier, Japan Display, is in “advanced talks” to get as much as $703 million from its largest shareholder, which is Innovation Network Corp. of Japan, a government-backed fund. The fund holds 36 percent of the supplier.
Unnamed sources told WSJ that there have been no concrete decisions made about that financing and that any support or deal could see details change. Those details could include the issuance of bonds, and also, said those unnamed sources, lenders that include banks could step into the fray. For Apple, some sources have noted, the bailout could mean that the company now would have an additional supplier capable of working to produce OLED displays that could be used in the phones.
