America and Japan may join forces to manufacture displays in the US — New $13 billion fab proposed by Japan Display Inc. to counter Chinese dominance
Source: Tom’s Hardware
Image credit: Getty Images
Japan Display Inc. (JDI) has proposed a new state‑of‑the‑art display factory to be set up in the United States, in collaboration with the Japanese and American governments. The plant would be worth up to $13 billion, according to the initial reporting by Nikkei Asia. Reuters has now confirmed that Washington and Tokyo are in active talks to explore this idea, a confirmation that sent JDI’s stock up 80 % on Monday.
Strategic Context
The proposed factory would aim not only to strengthen Japan‑U.S. ties but also to rival the high‑volume, low‑cost production that China has mastered. It could potentially reduce foreign reliance on Chinese displays, addressing a national security concern while bolstering domestic manufacturing capabilities.
The plant is being considered as part of a broader $550 billion investment framework that Tokyo has planned for the United States. While the U.S. has never been a hotspot for display production, Japan once dominated the industry thanks to pioneers such as Sharp, Panasonic, Sony, Toshiba and Hitachi. JDI itself was created in 2012 by merging the LCD units of Sony, Toshiba, and Hitachi with government backing.
JDI’s History and Challenges
Since its formation, JDI has struggled, reporting net losses for ten consecutive years. The inflection point came when Apple switched to OLED screens on the iPhone—JDI had been the main supplier for Apple’s LCDs. Although JDI is not state‑owned, it receives indirect support from the Japanese government, similar to JOLED, another financially troubled display firm that went bankrupt in 2023.
Despite the decline of Japan’s display industry, JDI has avoided bankruptcy thanks to repeated support from state‑backed funds. Building a new display factory is extremely expensive, so partnering with Washington makes sense from both a financial and geopolitical standpoint.
Future Prospects
For now, JDI has focused on the automotive sector with innovations in car displays, such as the 2VD screen that delivers two touch displays in one panel. The proposed U.S. plant could expand JDI’s product portfolio beyond automotive applications, but only time will tell what the factory will ultimately produce.