Japan Display announced on February 12 that it will end panel production at its Mobara plant by March 2026. The company aims to secure profits by turning the plant into an AI data center. The plant’s panel production equipment will be moved to the Ishikawa plant in Nomi-gun, Ishikawa Prefecture. The Ishikawa plant has a major advantage in that its fixed costs are about one-quarter lower than those of the Mobara plant.
The company will give up in-house production of organic EL displays produced at the Mobara plant. As for the next-generation organic EL display “eLEAP” that the company is developing, the company will continue the business in a fabless format by outsourcing production to an external foundry. Considering conversion to an AI data center After the closure of panel production at the Mobara plant, the company will negotiate the sale of the plant’s assets with many companies that have a need for it, with the main focus on converting it into an AI data center. As of January 31, 1,323 employees were working at the Mobara plant.
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The company said that the plant’s personnel are “currently in the process of discussing implementation plans with partners and working toward industry restructuring.” Regarding the decision, JDI explained that “in order to break away from the chronic deficit caused by our reliance on the display industry, where severe over-competition continues, we need to make a bigger strategic shift than ever before.”
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