Apple in talks with Japan Display to build $1.7B iPhone screen plant

Japan Display Inc (JPI) is considering building a plant to supply smartphone screens for Apple and is negotiating with the US company for investment in the project, according to Reuters.

The new factory would churn out the same types of low-temperature polycrystalline silicon displays that are currently used in the iPhone 6 and 6 Plus. Reuters also say the factory could eventually be repurposed to build OLED panels like those found in the Apple Watch—and possibly in future iPhones. The factory’s output wouldn’t be exclusive to Apple’s devices, however, as the deal currently allows JDI to sell its wares to competitors.

Japan Display was formed in 2012 through the merger of the LCD units of Sony Corp. , Hitachi Ltd. , and Toshiba Corp. , with the help of the government-backed Innovation Network Corporation of Japan. It runs a plant southeast of Tokyo, in Mobara, “which makes 50,000 of the 1.5 by 1.85 metre sheets a month for iPhone 6 screens and other uses.” According to the source, the new plant would have a “greater capacity” than even JPI’s Mobara facility.

“We are reviewing various considerations to strengthen our business competitiveness, including new factories, but we haven’t made any decision yet,” Japan Display said in a statement on Friday. Apple declined to comment, as usual.

If this deal sounds a bit familiar, there might be a reason for that. Apple previously made a similar deal with GT Advanced Technologies to build a factory for sapphire crystal iPhone 6 displays. The partnership famously fell apart after GTAT’s leadership exhibited an astounding lack of competence and an unusually keen ability to waste money.

The sapphire factory is now being turned into a $2 billion global command center by Apple.

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