Sharp Offloads LCD Plant to Foxconn After Years of Losses

Struggling to compete with rising Chinese display makers, Sharp has sold one of its major LCD production facilities in Japan to Foxconn. The plant had once been central to Sharp’s global TV success.

As Chinese manufacturers continue to dominate the global LCD market, Japanese and South Korean producers are feeling the pressure. In response, Sharp has decided to sell one of its key LCD panel factories in western Japan to its parent company, Foxconn.

The facility, located in Kameyama, was once a cornerstone of Sharp’s reputation in the television and electronics market. However, over the past two fiscal years, the display division has been generating significant losses, amounting to $2.8 billion to date.

The Kameyama complex consists of two main buildings, both focused on producing small to mid-sized LCD panels used in smartphones, tablets, and PCs. Sharp is selling the less utilized of the two buildings, which has been operating at just 80% of its capacity since June 2023.

Production of large-sized LCD panels at this site ended in August 2023 as part of an earlier restructuring phase. Sharp also shut down a similar plant in Sakai, as the LCD business remains unprofitable in the face of stiff competition from China.

The Kameyama plant, operational since 2004, once symbolized Sharp’s manufacturing power. One of its buildings will continue producing LCD panels for now, depending on market viability.