Toshiba and Apple to Invest $1.2 Billion in Factory to Produce iPhone LCDs

[MacRumors]

Reuters reports on an article in Japan's Nikkei newspaper revealing that Toshiba is planning to invest nearly $1.2 billion in a new factory to make small LCD panels, with the plant being targeted primarily to supply Apple with displays for its small iOS devices like the iPhone. Apple is also said to be investing money in the new facility.

The company's wholly owned unit, Toshiba Mobile Display Co, will construct the facility in Ishikawa prefecture and the plant will churn out low-temperature polysilicon LCD panels, which allow for high-resolution images, the paper said.

Work on the plant will start by early next year, with the production due to begin in the second half of 2011, Nikkei said.

The forthcoming facility is said to allow Toshiba to more than double its existing capacity of about 8.5 million units per month.

Toshiba has been reported as one of the suppliers of the LCD panel for the iPhone 3GS, and is thought by some to also be involved with the Retina display of the iPhone 4, although the individual parts carry only Apple branding.

Article Link: Toshiba and Apple to Invest $1.2 Billion in Factory to Produce iPhone LCDs

 

[haiggy]

12 billion or 1.2 billion?

Title is probably wrong

Edit: nvm fixed

 

[Michaelgtrusa]

Apple should invest here in the U.S.

 

[smileyborg]

I guess this means no OLED screens in the near future? Or maybe the same plant can make LCDs and OLEDs?

 

[Tilpots]

Apple should invest here in the U.S.

Agreed. Apple gear should read Made in the USA instead of Designed by Apple in California.

 

[palmerc2]

thats, a lot of beans....

 

[fishmoose]

Agreed. Apple gear should read Made in the USA instead of Designed by Apple in California.

You're willing to pay more for the products to make that happen?

 

[shartypants]

Nice to see that not everything is made in China I hope this means even better displays, they are already pretty awesome, maybe lower power would be good.

 

[Jacquesass]

Ready to produce high-res screens in late 2011...presumably for products in early 2012.

I hope this doesn't mean that the iPad is stuck with low-res until the iPad 3.

 

[Gasu E.]

Apple should invest here in the U.S.

It's almost surely Toshiba's technology. Since Apple is going to be the consumer of 100% of the output, Apple, is assuming some of the risk to ensure they have a reliable supply.

 

[Eddyisgreat]

Agreed. Apple gear should read Made in the USA instead of Designed by Apple in California.

Toshiba + other asian suppliers that Apple uses have been in the game for a number of years. I don't know any American outfits that can match the delivery of Foxconn, Toshiba et al, not right now atleast.

 

[Full of Win]

Hey, nobody tell LG quite yet. I don't think she can take that her main squeeze (Apple Consumer Electronics) maybe seeing somebody else in the near future.

 

[gnasher729]

Reuters reports on an article in Japan's Nikkei newspaper revealing that Toshiba is planning to invest nearly $1.2 billion in a new factory to make small LCD panels, with the plant being targeted primarily to supply Apple with displays for its small iOS devices like the iPhone.

Last time when Apple invested in Samsung for building LCD displays, it was $100 million, and everybody thought that was an awful lot of money. How times have changed.

 

[tbrinkma]

I guess this means no OLED screens in the near future? Or maybe the same plant can make LCDs and OLEDs?

OLEDs are a neat technology, and they're great for buzzword bingo, but they're not really ready for prime-time on devices you've got to be able to read outside during a summer day. (They're probably only a couple years out from that point though.)

 

[bmk]

You're willing to pay more for the products to make that happen?

Does that mean you support the exploitation of foreign workers so that you can have cheaper electronic goods? The argument cuts both ways. Apple like most American (and Western) companies, exports jobs to the east because it is cheaper. And it is cheaper because the workforce is paid less and is not unionised. Fair wage=a high, but realistic cost of goods. Cheap goods=exploitation and an unsustainable reduction in the price of goods.

 

[Popeye206]

That's a huge jump in capacity. So... I'm guessing that Apple is expecting a huge jump in demand over the next year. It will be interesting to see what's the "big" thing with the iPhone 5.

 

[fishmoose]

Does that mean you support the exploitation of foreign workers so that you can have cheaper electronic goods? The argument cuts both ways. Apple like most American (and Western) companies, exports jobs to the east because it is cheaper. And it is cheaper because the workforce is paid less and is not unionised. Fair wage=a high, but realistic cost of goods. Cheap goods=exploitation and an unsustainable reduction in the price of goods.

Absolutely, but companies moved because the market wanted cheaper products. Has the market changed so they can start charging more for products in order for having them produced in the Western civilization? I think not.

 

[dlewis23]

You're willing to pay more for the products to make that happen?

Yes. I would have no problem paying a little more for my iPhone knowing it was assembled in USA.

I know every part is not going to be made in US because of the suppliers, but having it assembled in the US would be a nice step forward for me.

 

[res1233]

Absolutely, but companies moved because the market wanted cheaper products. Has the market changed so they can start charging more for products in order for having them produced in the Western civilization? I think not.

Yep, wether or not cheap labor is right isn't really part of the equation at this point. People are going to buy the cheaper products, so the sad truth is, the only way to compete is to have your products made in Asia.

 

[Mactagonist]

Apple should invest here in the U.S.

Tell your government representatives that you support incentives for companies to do their production here in the US and penalties for those that offshore production then. Because Apple, et al are just making a business decision to move production offshore, if the incentives were arraigned to encourage onshore manufacturing it would happen.

 

[croooow]

You're willing to pay more for the products to make that happen?

Personally, I would be willing to pay more to get "Assembled in China" off my Apple products. (Maybe lose the "in California" as well: "Designed by Apple Assembled in the USA" would be lovely!)

 

[nStyle]

You're willing to pay more for the products to make that happen?

Then you get into the argument of whether or not Apple could lower the price of their products in general. With their scale, I am sure they could. There are reasons that any high end PC is considerably cheaper than the cheapest Apple. I own Apple products and don't like buying anything else because of the quality and the design/portability... but is the price right? Not necessarily in my eyes.

 

[Piggie]

Well, they are going to need somewhere new to make all the "iPad" Retina Displays for the iPad3

 

[uncclew]

Does that mean you support the exploitation of foreign workers so that you can have cheaper electronic goods? The argument cuts both ways. Apple like most American (and Western) companies, exports jobs to the east because it is cheaper. And it is cheaper because the workforce is paid less and is not unionised. Fair wage=a high, but realistic cost of goods. Cheap goods=exploitation and an unsustainable reduction in the price of goods.

One might argue that this "exploitation" has caused countries like China and India to become much wealthier over the past few decades. Production of electronics (as well as other goods) can be a net positive for these countries. China is expected to overtake the US in GDP within the decade, in part because of US outsourcing.

I agree that working conditions are often way less than ideal and in no way do I support these working conditions, but it should be noted that there's also a level of wealth transfer.

 

[BC2009]

Does that mean you support the exploitation of foreign workers so that you can have cheaper electronic goods? The argument cuts both ways. Apple like most American (and Western) companies, exports jobs to the east because it is cheaper. And it is cheaper because the workforce is paid less and is not unionised. Fair wage=a high, but realistic cost of goods. Cheap goods=exploitation and an unsustainable reduction in the price of goods.

Keep in mind that unions today are just another way to exploit workers. Few union workers benefit from their union helping them when they need it. Most unions are in it for the union dues they collect as an entry fee for workers to gain employment at employers with a union contract.

Many foreign workers are seeing far better quality of life then they ever did before with all the US money was coming their way. Though, I'm sure there is still exploitation going on, but in the tech industry its not like the clothing manufacturer sweat shops we hear about. Apple does do some due-diligence with their suppliers. I'm more concerned about the amount of money flowing from the USA to foreign countries -- I think the "union tax" is part of the cause of that.

US workers are exploited too -- just depends on your definition of exploit.
You should check out this video -- it exposes the UFCW for what they are while being funny too.

EDIT: Just so folks know -- I do see both sides to this, but I feel its not as cut-and-dry as some folks make it sound.