Key facts
- Japan Display Inc. will sell its Mobara factory to Shinko Electric Industries.
- The sale is expected to yield an extraordinary gain of approximately 51.4 billion yen for Japan Display Inc.
- Shinko Electric Industries will convert the Mobara plant into a facility for advanced semiconductor package substrate production.
- The Mobara plant previously produced LCDs for iPhones.
- Shinko will transfer a portion of the Mobara site to its manufacturing partner, FICT Co., Ltd.
Japan Display Inc. has agreed to sell its Mobara factory, a facility that once produced displays for iPhones, to Shinko Electric Industries. The sale, confirmed on October 1, 2026, is expected to generate an extraordinary gain of approximately 51.4 billion yen for Japan Display Inc. Shinko Electric Industries, a manufacturer of integrated circuit substrates, plans to convert the 373,483-square-meter facility in Chiba Prefecture into a core factory for advanced semiconductor package substrate production, particularly for AI accelerators and high-performance computing processors.
Display panel production at the Mobara plant ceased in November 2025, and Japan Display Inc. has been shifting towards an asset-light operating model. The sale of the Mobara site, its largest idle fixed asset, will help finance this transition and shore up the company's equity balance following persistent annual net losses. Shinko Electric Industries is acquiring the established plant to bypass lengthy construction timelines for cleanrooms and industrial utilities, leveraging the existing infrastructure for its semiconductor back-end processes.
Shinko will officially take possession of the Mobara site on March 31, 2027, with production expected to begin in fiscal year 2028. Alongside the primary transaction, Shinko will transfer the western parcel of the plant, approximately 232,745 square meters, to its manufacturing partner FICT Co., Ltd., which produces printed circuit boards and advanced packaging components. This shared occupancy aims to shorten development cycles for high-density semiconductor substrates.