In May 2022, JDI announced that it would end LCD display production at the Higashiura, Aichi Prefecture, Japan fab by March 2023 and relocate certain key production equipment to other JDI fabs in an effort to increase the company’s cost competitiveness and profitability. Main concerns about the infrastructure-rich asset were the large size of the site (387,673 sq. ft. of cleanroom/manufacturing space) and the short timeline available to find and secure a suitable buyer before the fab’s closure. The disposition of a large manufacturing facility at any time is extremely difficult, especially with such a large site and short timeline.
ATREG was retained to conduct a comprehensive global campaign to market the fab which led to a highly competitive bidding process that brought multiple interested parties to the table, enabling JDI to make the most informed decision and maximizing the value of the asset. Companies considered the JDI site for conversion to front-end semiconductor, back-end semiconductor, substrates, data center, and other advanced technology uses. Ultimately, Sony Semiconductor was the best match for the JDI facility.
• JDI’s Higashiura manufacturing fab was sold to SONY within nine months of coming to market.
• The acquisition will preserve fab jobs in the region and ensure continued large-scale production at the site.
• JDI and SONY negotiated a lease agreement for part of the facilities that JDI plans to convert into an engineering center to continue its display technology design, prototyping, and analysis activity at the site.
• JDI consolidated its production footprint into a more manageable portfolio, decreased overall manufacturing costs, and increased its operational efficiency and profitability.
