Japan Display (6740.JP) has announced the completion of the sale of its Tottori plant. Going forward, the company is expected to advance its business restructuring by directing resources toward the use of the Mobara plant and the deployment of new technologies.
Japan Display announced today that it had completed the sale of its Tottori plant. The prospect of a subsequent sale of the Mobara plant has become a topic of discussion in the market, but some believe that a major surprise should not be expected from the sale price of Mobara itself. Asset sales are only one means of reducing the company’s burden, and commentators continue to point out that true growth lies in expanding technology, orders and profits.
While remaining mindful of challenges such as its past losses and heavy fixed costs, the company has outlined plans to direct resources into new business areas alongside its asset restructuring. It is exploring the use of technology assets centered on BEYOND DISPLAY and expansion into a diverse range of markets, including satellite communications, biotechnology, advanced semiconductor packaging and sensors.
Strengthening Japan-U.S. cooperation is another notable feature, with collaboration with U.S. companies and plans for local manufacturing becoming more common than before. The trend toward prioritizing technology partnerships with trusted countries is expected to advance, driven not only by cost advantages but also by economic security and supply chain considerations.
Across the market, some observers say that a phase is approaching in which JDI’s narrative and supply-demand structure will come into alignment. Including the movements of large-scale funds and trading volume trends, market participants are expected to continue looking for the timing at which current consolidation will lead to actual demand.