Recent plans for a $13bn U.S.-Japan display factory have transpired with Japan Display expected to build the plant in the U.S. The project is part of the recently inked $550 billion investment package as noted by sources close to Reuters. The plan is aimed at strengthening U.S. display manufacturing. Moreover, this move comes as the U.S remains concerned with over reliance on China for display technologies used in military system.

On the other hand, it provides Japan companies with a new market as fierce price competition has pushed many out of market. Despite being linked to the project, Japan Display did not provide any comments.

However, its shares surged 80%, valuing the long loss-making company at 190 billion yen which equals $1.2 billion. Reports have noted that the buildout of the facility will cost approximately $13 billion. The display project is among several deals under discussion between the United States and Japan, said one of the sources, who declined to be identified. There are various manufacturing facilities taking shape across the U.S. such as the Arsenal-1 manufacturing facility in Ohio.

Scope on Japan Display on the U.S.-Japan Display Factory Deal

The construction of the U.S.-Japan display factory is a stepping stone for the company which was once on top of the technology industry. Japan Display was formed in 2012 in a government-backed merger of the display units of Sony Group, Toshiba and Hitachi. Moreover, it was once one of the world’s top vendors of liquid crystal display (LCD) panels and the primary screen supplier for Apple’s iPhones.

However, Apple’s shift to organic light-emitting displays (OLED) and price competition from Chinese players pushed Japan Display from the top. Ever since, the company has been struggling with losses for more than a decade. The company is consolidating its domestic plants to focus resources ⁠on automotive displays and is ending OLED panel production for the Apple Watch.

The Japanese government invested more than 460 billion yen in Japan Display but exited last ⁠year. Furthermore, it lost about a third of its investment. Research firm Counterpoint forecasts China will continue to dominate global display capacity, expanding its share from 68% in 2023 to 75% in 2028.

Project Factsheet

• Project Name: U.S.–Japan Display Manufacturing Facility
• Estimated Investment: $13 Billion
• Project Type: Advanced display manufacturing plant

Location

• Country: United States

Key Companies Involved

• Japan Display

Investment Framework

Total U.S.–Japan Investment Package: $550 Billion

Purpose:

• Strengthen U.S. display manufacturing capability
• Reduce reliance on Chinese display technology supply chains
• Expand market opportunities for Japanese display manufacturers

Technology Focus

Primary Technology:

• Liquid Crystal Display (LCD) panels

Secondary/Industry Context:

• Organic Light-Emitting Diode (OLED) display technology

Industry Background

• Japan Display was formed in 2012 through a government-backed merger of display divisions from Sony, Toshiba, and Hitachi.
• The company previously served as a major display supplier for Apple iPhone devices.
• Market shifts toward OLED displays and competition from Chinese manufacturers reduced its market share.

Strategic Objectives

• Rebuild domestic display manufacturing capacity in the United States
• Support supply chain security for advanced technologies used in defense and electronics
• Provide new global market access for Japanese display manufacturers

Market Outlook

Research by Counterpoint Research projects:

• China held 68% of global display manufacturing capacity in 2023
• China may expand its share to 75% by 2028

Current Status

• Project under discussion between U.S. and Japanese stakeholders
• Estimated construction cost: $13 billion
• Site location and timeline also yet to be finalized
• Also no official public statement issued by Japan Display at the time of reporting.