TOKYO (Reuters) – Japan Display Inc said on Monday it has formed an alliance with China’s HKC Corporation Ltd (HKC) to cooperate on next-generation OLED technology, chip fabrication, and auto displays, sending the Japanese company’s shares 10.5% higher.
Japan Display and HKC will jointly plan and build fabs using Japan Display’s eLEAP OLED technology, targeting mass production in 2025, the Japanese company said.
Japan Display is planning more than one plant under the alliance with HKC, Chief Executive Scott Callon told a briefing, adding the tie-up would bring together Japan Display’s technology and HKC’s cost competitiveness.
Japan Display, a maker of phone and computer displays, is on a restructuring drive to turn around its struggling businesses.
The company is majority-owned by Cayman Islands-based Ichigo Trust. Callon is also the head of Ichigo Asset Management, an affiliated Japan-focused investment manager.
Japan Display was formed in 2012 when the LCD businesses of Hitachi Ltd, Toshiba Corp and Sony Corp merged in a government-brokered deal.
(Reporting by Rocky Swift and Kiyoshi Takenaka; Editing by Kim Coghill, David Dolan and Jamie Freed)
