INCJ, a public-private partnership overseen by the Japanese Ministry of Economy, Trade and Industry (METI), has disclosed that it has sold all its shareholding in Japan Display (JDI) via the market, incurring a loss of JPY154.7 billion (US$1.05 billion).
INCJ chairman and CEO Toshiyuki Shiga said that INCJ had been a major shareholder in JDI since its establishment in 2012 to improve the international competitiveness of Japan's panel industry. INCJ had injected into JDI a total of CNY462 billion in investment and loans.
Despite having taken risks and invested in this project for 13 years, INCJ has only managed to recover 66% of its total investment and loans for JDI, said Shiga.
With investments from INCJ, Sony, Toshiba, and Hitachi, JDI was established in April 2012 through the integration of the small and medium-sized display businesses of the subsidiaries of Sony, Toshiba, and Hitachi.
INCJ said it decided to invest in JDI with the aim of supporting technological innovations in LCD and OLED displays, as well as the overall development of Japan's display industry.
Early on, JDI was able to expand its business and conduct an IPO due to its high technological capabilities, according to INCJ. After listing on the Tokyo Stock Exchange in 2014, JDI started to face a difficult business environment, with the smartphone market shifting to high-performance OLEDs, overseas competitors gaining ground, and price competition intensifying, according to INCJ.
JDI fails mission to revive Japan's display industry
China is now the world's biggest display panel supplier, while JDI tasked with reviving Japan's panel industry, lags behind the race and is struggling for survival.
JDI has never made a profit since its listing, and its stock price has never been able to break through the IPO price of JPY900. Its price is only around JPY10 to JPY20.
INCJ said it had taken steps to improve JDI's business, including a capital tie-up with Ichigo Trust in 2020 to strengthen its financial position. Currently, JDI is focusing on collaborations with other companies based on its proprietary, next-generation OLED eLEAP technology, and on non-panel businesses such as advanced semiconductor packaging, to return to profitability in the fiscal year ending March 2026, according to INCJ.
However, INCJ decided to end its involvement in JDI, selling its shares in stages. According to JDI's report, INCJ still held a 0.26% stake as of the end of September 2024, but it has now released its entire shareholding.
Shiga said he hopes that under the leadership of CEO Scott Callon, JDI will continue to succeed in its activities and grow as a company that is globally competitive.
JDI's restructuring and future outlook
Due to the decline in demand for LCD panels and losses stemming from fab closures, JDI expects to report a net loss for the 11th year in a row when releasing its financial results for the fiscal year ending March 31, 2025.
JDI has also announced that it will cancel its hiring plan for college graduates in the spring of 2026. The last time it canceled such recruitment was in the spring of 2022.
In November 2024, JDI announced that it would shift its business focus from displays to other sectors, such as data centers and glass substrates. In February 2025, JDI ceased operations at the Mobara plant in Chiba Prefecture, and concentrated LCD panel production at the Ishikawa plant in Ishikawa Prefecture.
Article edited by Jerry Chen
