Sharp Corp. will sell its Kameyama liquid crystal display plant to parent company Foxconn Technology Group, scaling back a business that once symbolized the company’s global ambitions but has since struggled with profitability.
The sale involves the second building of the western Japan complex, which runs at lower utilization and produces small and medium-sized display panels for smartphones, tablets, and PCs. The transaction is expected to complete by August 2026, with Foxconn continuing LCD production at the facility.
The Kameyama factory, opened in 2004, was once famous for its “Kameyama Model” LCD TVs that helped establish Sharp as a global brand. The facility’s second building has already seen its capacity reduced to about 80% of original levels by June 2024.
This divestment follows Sharp’s earlier decision to halt large LCD panel production for TVs at its Sakai factory in August 2024. The company reported ¥410 billion ($2.8 billion) in combined net losses for the two fiscal years through March 2024, with its LCD panel business being a primary contributor to these poor results.
Sharp President and CEO Masahiro Okitsu said in February the company couldn’t forecast when the LCD business would return to profitability. The restructuring aims to achieve a 1.8% operating income margin in the LCD panel business by fiscal year 2027.
The sale reflects Sharp’s struggle against Chinese manufacturers who have ramped up production, driving down panel prices and squeezing margins across the industry.
