Sharp Corporation has announced an earlier-than-planned shutdown of its Sakai Display Product (SDP) plant, which produces large-size LCD panels for TVs. Initially scheduled for the end of September, production will now cease in late August, according to Sharp President Masahiro Okitsu.
In his first media appearance since becoming president on June 27, Okitsu outlined that the final batch of LCD panels will be produced following the Obon festival in late August. The plant will then be repurposed into an AI data center through a collaboration with Softbank and KDDI, though details of this partnership were not disclosed.
Sharp’s strategic shift comes as part of a broader effort to improve its financial standing. The company reported a net loss of JPY 149.9 billion for the fiscal year ending March 2024, marking its second consecutive year of substantial losses due to impairment in its panel business. However, Sharp projects a return to profitability in the 2024 fiscal year, with an anticipated consolidated operating profit of JPY 10 billion and a net profit of JPY 5 billion.
Foxconn Chairman Young Liu’s appointment as Chairman of Sharp is expected to clarify the division of duties, with Foxconn providing oversight and support while Sharp continues to manage its brand business operations. Okitsu aims to increase the operating profit margin of Sharp’s brand business, which includes products like white goods, to 7% by the 2027 fiscal year.
Looking ahead, Sharp plans to leverage Foxconn’s technical expertise to enter the AI and electric vehicle (EV) markets, with product launches anticipated in the 2026-2027 fiscal years. These initiatives reflect Sharp’s commitment to diversifying its portfolio and enhancing profitability amid challenging market conditions.
