Liquid crystal display company Japan Display said Tuesday it lost about $115 million in the second quarter and that it had to turn to its leading shareholder, the public-private fund Innovation Network Corp., for support. of Japan (INCJ).

Japan Display CEO Mitsuru Homma said that the company's largest shareholder, INCJ, will provide it with full assistance. He hopes the company will not have to issue new shares to INCJ, which already owns 35.6% of Japan Display. Another company official said Japan Display expects to receive loans. INCJ said that a decision has not yet been made, but the fund supports the company.

Japan Display was founded in 2012 with the assistance of INCJ as a result of the integration of the LCD panel manufacturing businesses of Sony Corp., Hitachi Ltd. and Toshiba Corp. In 2014, the initial public offering of shares took place, but now the price of its shares is not even a fifth of the offering price. Japan Display is one of the leading manufacturers of screens for Apple's iPhone. However, due to declining iPhone sales, Apple's demand for the company's products has fallen. This has significantly reduced Japan Display's revenue, half of which comes from orders from Apple, according to stock exchange data.

Despite Japan Display's expansion in China, its largest Chinese client Huawei Technologies accounted for only 12% of its total revenue in the first quarter of 2016. The strong yen also negatively affected the company's position. Another Japanese LCD manufacturer, Sharp, which was recently sold to Taiwan's Foxconn, faced similar problems.

Compared to last year, Japan Display's revenue fell 29%. Analysts say that with competitors such as China and South Korea, the Japanese company has virtually no chance of remaining in the market. If the government believes the industry is still important to Japan, the fund or the Ministry of Economy, Trade and Industry should take decisive action, said Riyosake Katsura, an analyst at SMBC Nikko Securities.

Homma expects Apple orders to resume this month, but noted that Japan Display will seek partners in the production of virtual reality headsets and embedded displays.

Translated by Ekaterina Postnikova

iPhone let down by Japan Display