Sharp has officially ceased production of large-scale TV LCD panels at its Sakai factory in Osaka as of August 21, signaling the end of Japan’s TV panel manufacturing era. The factory, which had been the last bastion of domestic TV LCD production, faced stiff competition from Chinese and South Korean rivals, leading to its closure. This move represents a significant shift for Sharp as it transitions towards the rapidly growing field of artificial intelligence.
The Sakai factory will be repurposed into an AI data center in collaboration with Japanese telecommunications giant SoftBank. The two companies are in discussions over SoftBank’s acquisition of approximately 60% of the factory’s land and facilities, aiming to launch operations by 2025. The AI center is expected to be one of the largest in Asia, leveraging advanced GPU technology.
The transition allows Sharp and its major investor, Hon Hai Precision (also known as Foxconn), to pivot away from the unprofitable TV panel business. By embracing AI infrastructure, Sharp aims to secure a foothold in a burgeoning market, reinforcing Hon Hai’s strategic position in AI servers. This transformation highlights the evolving landscape of Japan’s tech industry, as traditional manufacturing gives way to high-tech innovation.
