14 DAY TRIAL // Much like it prefers to design its own application processors, Apple next year plans to start making its own displays. To achieve its goal, it is reportedly funding the construction of a new Japan Display plant in the Ishikawa Prefecture.
The factory is scheduled to go online in 2016, and it will produce a high-definition liquid crystal panels using LTPS (low temperature polysilicon) technology. OLED display production, likely for the Apple Watch, is also planned, but at a later date.
Only for the iPhone at first
Nikkan has it on file from industry sources that Apple is funding this factory completely, spending as much as 200 billion yen, or about $1.7 billion / €1.5 billion.
The iPhone maker recently scored some bad luck in a similar endeavor (think GT Advanced and sapphire) last year, but it seems determined to try and make as many of its own parts as possible.
While the plant will be operated by Japan Display staff, all the orders will be coming from Cupertino, California. The facility will begin operations by making small-sized LCD displays for the iPhone line. When the time is right, it will also start producing OLED screens, according to the sources.
Being your own boss has major advantages
The factory will only produce for Apple, giving the company a huge advantage when it comes to preparations for a next-generation model.
Since being instated as CEO of Apple in 2011, Tim Cook has made considerable efforts to reduce its reliance on outsourced manufacturing. One of those efforts culminated with failure last year when Apple contracted GT Advanced to make sapphire for the next generation of iPhones.
Because GTAT was unable to deliver on its promise, Apple was forced to abandon plans of equipping iPhones with sapphire displays. Instead, it chose to rely on ion-strengthened glass, which is a fancy way of saying slightly-more-durable ordinary glass.
Apple picked up the pieces from its failed partnership with GTAT and announced plans to repurpose the sapphire factory turning it into a command center.