The plant would make panels for Apple's wildly popular iPhones, the Nikkan Kogyo Shimbun and Jiji news wire reported. The device's global sales, notably in China, have surged to make Apple the most profitable company in history.
Japan Display did not confirm the report but said it was constantly pursuing opportunities to strengthen its competitiveness, including building a new plant. "No formal decision has been made regarding any matter that we need to disclose," it added in a statement.
The proposed plant in Ishikawa, central Japan, would start operations in 2016 and is expected to produce panels mainly for Apple but also for other companies, the newspaper said without disclosing its sources. Japan Display Chief Executive Officer Shuichi Otsuka said last year that the company needed a new plant as it was reaching capacity at its Mobara facility southeast of Tokyo.
Japan Display, formed in a government-backed deal in 2012 from the ailing display units of Sony Corp, Toshiba Corp and Hitachi Ltd, has endured a rocky spell since its listing in Tokyo last year.
But the company this month reported a rebound to profit from two quarters of losses, boosted by demand from Apple and Chinese smartphone makers in stark contrast with Japanese competitor Sharp Corp's shrinking panel business. Extra orders from Apple would boost Japan Display in its rivalry with Sharp.
Japan Display's shares jumped 14 percent in early trade on the news before closing up 5.4 percent. Sharp fell 2 percent, while the benchmark Nikkei share index rose 0.4 percent.
Apple and Sharp both declined to comment on the reports.
source: www.abs-cbnnews.com
