Japan Display Inc has been reportedly in discussions with Apple Inc and Sharp Corp for a sale of its main smartphone screen factory.
The cash-strapped company had said this month that financial support of $200 million promised by "a customer", which sources said was Apple, may come in the form of purchasing equipment at the plant.
Those discussions appear to have switched to the sale of the entire factory, the Nikkei said. Japan Display owes Apple more than $800 million for the $1.5 billion cost of building the plant four years ago.
Sharp confirmed in a statement it had received a request from a client to consider the purchase of Japan Display's Hakusan plant. "We are carefully considering it, reviewing the impact that any purchase would have on our earnings, and whether and how much risk it would entail."
Japan Display said earlier this month that it plans to receive up to 90 billion yen in financial support from Ichigo Asset Management, giving effective control to the Japanese asset manager.