Sony Semiconductor Manufacturing has agreed to buy an LCD panel production facility from Japan Display (JDI), which will focus on display technology design and prototyping, as it moves to boost its competitiveness and profitability.
In a statement, JDI noted the sale of its Higashiura fab will close on 1 April 2024, with production at the facility ending recently.
JDI said it will convert part of the plant into an engineering centre in April. It has an existing lease agreement with Sony for use of some of the facilities.
Based on new lease and outsourcing agreements, along with facilities-related expenses for the restoration and repurposing of the facilities, JDI said it plans to record revenue from Sony.
With trade tension with China rising and global supply chains disrupted, Sony has stepped up moves to transfer some production out of the nation.
Together with Taiwan Semiconductor Manufacturing Co, Sony is building a chip facility in Japan which is expected to start production in 2024.
