Sharp Corp. finalized a deal to sell its idle small-to-medium LCD panel factory in Mie Prefecture to Aoi Electronics Co., continuing its push to shed manufacturing assets as it pivots away from display production.
The Foxconn-owned company announced Monday it has agreed to sell its No. 1 plant at the Mie manufacturing site to Aoi and is considering selling the No. 2 plant as well. The 60,000-square-meter facility has been dormant for nearly a decade, having previously produced smartphone displays until 2015.
Aoi plans to convert the facility into a semiconductor packaging plant, focusing on its FOLP (Fan-Out Laminate Package) technology for advanced chip packaging. The Japanese component manufacturer aims to begin production by 2027, ultimately reaching a capacity of 20,000 wafers per month.
The transaction represents a strategic shift for both companies. For Sharp, it’s part of a broader asset-light initiative for its components business, which includes LCD panels and electronic components divisions. For Aoi, it provides an accelerated entry into the growing advanced packaging sector without building facilities from scratch.
