Wistron, a one-time strong iPhone Supplier is shutting down an iPhone plant in China while selling another plant to India's Tata Group+
Wistron sold their iPhone plant in China to Luxshare back in 2020 so as to make iPhone's in India for Apple. In that same year, riots broke out in their plant in India costing US$7 milion or more. According to a new report, Wistron will be selling their Indian plant to the Tata Group, as we reported back in November 2022. The deal is reportedly going to be concluded by the end of this month.
Today we're learning that Wistron's plant in Taizhou China is shutting down on next week, April 26 to be exact and business matters will conclude in May. Why is the factory closed instead of being sold? The key reason given was that the iPhone switched to OLED screens 7 years ago and Wistron couldn't adust. With Apple shifting to all iPhone 15's being OLED dispays, it was ball game over. Wistron’s Taizhou plant was an iPhone LCD panel LCM (liquid crystal display module) assembly plant and losses began as Apple shifted to more iPhones sporting OLED displays. The losses for Wistron were too much to continue.
Both Apple suppliers Compal and Wistron will close plants in Chengdu Airport Economic Development Zone that will affect tens of thousands of local employees due to their relocation to Vietnam. Both companies will make MacBooks in Vietnam.
Apple's sudden switch to OLED displays rocked Japan Display and JOLED as well. JOLED recently went bankrupt, with Japan Display taking over JOLED's research and development division. Although Japan Display has advanced OLED technology, competing with Samsung and LG Display has been difficult for the company.
It was reported earlier this month that Japan Display is teaming up with China's HKC Corporation to co-operated on next-generation technology for displays, as the Apple Inc supplier looks to turn around its struggling business.
The Financial Post /Reuter's report added that "This is not just a business alliance, but a significant strategic alliance,” Chief Executive Scott Callon said, adding that the move would bring together Japan Display’s technology and HKC’s cost competitiveness and large production capacity. The alliance was likely to build more than one new plant in China.
The two companies will jointly plan and build fabs using Japan Display’s eLEAP OLED technology, targeting mass production in 2025, the firm said.