Shinko Electric will acquire Japan Display's Mobara Plant and eventually convert it into a production site for flip-chip packages for AI accelerators. Handover of the plant is scheduled for the end of March next year, and the gain on disposal is expected to be ¥51.4 billion.
Shinko Electric, Japan's largest semiconductor packaging company, announced that it had signed a sale and purchase agreement for JDI's Mobara Plant in Mobara, Chiba Prefecture. Handover of the plant is scheduled for 31 March next year, and Shinko Electric plans to convert the Mobara Plant into a core production site for flip-chip packages for AI accelerators, with operations targeted to begin in 2028.
JDI is expected to record a gain on disposal of ¥51.4 billion as extraordinary income in a future fiscal period as a result of the sale. The sale price has not been disclosed, but the book value at the time of handover is estimated at approximately ¥26.6 billion. FICT will take over part of the plant site, while the eastern and western areas are scheduled to be used by separate companies.
Shinko Electric positions the acquisition of the Mobara Plant as a means of securing additional production capacity to meet rising demand driven by the spread of generative AI and increased data center investment. It is already investing to expand flip-chip package production capacity at its Nagano, Takaoka, Kōhoku and Wakahō plants, and plans to further expand its supply capacity by utilizing the Mobara Plant.
JDI has indicated that it plans to invest the management resources freed up by the sale in future growth businesses. The plant was once a major production site for LCD panels for iPhones, but demand declined as OLED displays became more widespread, and production ended last November.