Japan Display Inc. is shuttering its Mobara plant by March 2026 and taking a 20.4 billion yen ($136 million) impairment charge as the struggling display maker attempts to stem mounting losses through a dramatic restructuring.
The Tokyo-based company plans to convert the underutilized LCD and OLED facility into an AI data center while consolidating production at its lower-cost Ishikawa plant. The move aims to slash fixed costs by about 25 billion yen annually.
The reorganization comes as JDI battles deteriorating financial performance. The company now expects a net loss of 62.1 billion yen for the fiscal year ending March 2025, nearly 60% worse than its previous forecast, after factoring in restructuring costs and impairment charges.
JDI will end in-house OLED production at Mobara but seeks foundry partnerships to continue its eLEAP display technology development. The fate of the facility’s 1,323 employees remains uncertain pending union discussions.
The Ishikawa plant, which has just one-quarter of Mobara’s fixed costs, will be transformed into a multi-product facility handling both displays and semiconductor packaging through new partnerships with Taiwan’s PanelSemi and TECH EXTENSION.
This upheaval marks JDI’s latest attempt to reinvent itself beyond traditional displays as it struggles to compete with larger Asian rivals in a challenging market environment.
