Japan Display Inc. (JDI) announced it will issue new stock subscription rights to its parent company, Ichigo Trust, to raise JPY95.6 billion (US$664.4 million). The company also plans to sell patents related to LCD and OLED displays, along with the land and buildings of its Mobara factory.
Strategic restructuring accelerates
Nikkei, Reuters, and other outlets reported that on June 26, 2025, JDI stated the funds raised through the new stock subscription rights issuance will secure short-term operating capital and support mass production plans for high-value-added displays, sensors, and semiconductor packaging.
In May 2025, JDI announced its intention to transfer its main production base—the Mobara factory—and associated intellectual property rights to Ichigo. The current sale includes select patents related to LCD and OLED technologies, including JDI's independently developed OLED technology "eLEAP" and technologies held by JOLED, which went bankrupt in 2023. JDI has not disclosed the transaction amount.
Diversification strategy takes shape
Of the funds raised, JPY45.6 billion will serve as operating capital for core businesses such as automotive display panels. JPY25 billion will fund mass production equipment for new business ventures as part of diversification efforts. JDI plans to apply its display technology to the sensor and semiconductor fields, promoting advanced packaging technology development.
The company will also invest JPY10 billion in research and development for next-generation sensors and semiconductors. JDI intends to allocate JPY5 billion each to strengthening intellectual property strategies, strategic alliances, and information technology systems.
JDI expects to complete all these initiatives by November 2028.
Factory sale completes debt restructuring
JDI expects to complete the Mobara factory sale in late July 2025. The company will use the proceeds to repay JPY65 billion borrowed from Ichigo, accelerating management restructuring through loan repayment and securing additional funds.
Ichigo will exercise the new stock subscription rights at JPY25 per share. Ichigo will waive previously granted subscription rights with an exercise price of JPY45, which remained unexercised due to JDI's share price staying below JPY45. Despite the new issuance, Ichigo's shareholding ratio in JDI will remain at approximately 78%.
Article edited by Jerry Chen
