Sharp Corporation will cease operations at its Sakai Display Products (SDP) plant in Osaka by September, signaling the end of large LCD panel production in Japan, Nikkei reported. This decision is part of a broader effort by Sharp to streamline costs in its struggling LCD business, which recorded significant losses in recent years. The SDP plant, established in 2009 with an initial investment of 430 billion yen, has been a financial burden, prompting the reevaluation. The closure aligns with the market shift towards organic LED (OLED) technologies, with Sharp reallocating some engineers to a Sony-affiliated semiconductor firm. Despite the acquisition and subsequent sale by Taiwan’s Hon Hai Precision Industry, and later repurchase by Sharp, the plant’s performance has not improved. The company plans to maintain panel supply until September to fulfill existing contracts. The decision underscores the harsh competitive landscape in the LCD market, dominated by Chinese and Korean manufacturers.
