Sharp Shrinks
Sharp (6753.JP), once the shing star of Japan’s LCD TV display panel business is selling its Kameyama #2 LCD fab to its parent Foxconn (2354.TT). The fab, which originally produced TV panels, has been producing small displays for laptops, tablets, and smartphones of late. Foxconn has not indicated what they will do with the plant when the deal closes (expected by August 2026), but in the interim the fab will continue to operate under Sharp’s control. Given that Foxconn is Sharp’s largest shareholder, this might be a case where the sale is being made to dress up Sharp’s profitability, with the losses from the fab easier to absorb at Foxconn.
When the sale is completed, Sharp will have two remaining Gen 6 fabs (Hakusan and Kameyama #1) and one Gen 4.5 fab (Mie #3). The Mie #3 fab has been running at ~50% of its stated capacity, with Sharp expecting to more than double display revenue from that fab by fiscal 2026. While it is difficult to pin down, given the rapidly changing CE market, we expect much of Sharp’s remaining LCD capacity will be oriented toward the automotive display and XR display markets, with larger panels being produced at Kameyama #1. Sharp is targeting an increase in the production of panels over 13” at Kameyama #1 from ~30% now to 55% by fiscal 2027.
It would seem that with the sale of Kameyama #2, Sharp has trimmed its display business down to a more manageable level, although relying on continued growth in automotive displays. As Sharp is considered one of the most recognizable brands in the CE space, they continue to produce their own TV set branded product, which they can still produce, after the sale, maintaining in-house display production. Unfortunately Sharp does not produce OLED displays commercially, so we expect Sharp’s OLED TV models are based on LG Display’s (LPL) WOLED panels not on Sharp’s own OLED production. Hopefully a smaller, more profitable Sharp will be the result of the Kameyama #2 sale…
When the sale is completed, Sharp will have two remaining Gen 6 fabs (Hakusan and Kameyama #1) and one Gen 4.5 fab (Mie #3). The Mie #3 fab has been running at ~50% of its stated capacity, with Sharp expecting to more than double display revenue from that fab by fiscal 2026. While it is difficult to pin down, given the rapidly changing CE market, we expect much of Sharp’s remaining LCD capacity will be oriented toward the automotive display and XR display markets, with larger panels being produced at Kameyama #1. Sharp is targeting an increase in the production of panels over 13” at Kameyama #1 from ~30% now to 55% by fiscal 2027.
It would seem that with the sale of Kameyama #2, Sharp has trimmed its display business down to a more manageable level, although relying on continued growth in automotive displays. As Sharp is considered one of the most recognizable brands in the CE space, they continue to produce their own TV set branded product, which they can still produce, after the sale, maintaining in-house display production. Unfortunately Sharp does not produce OLED displays commercially, so we expect Sharp’s OLED TV models are based on LG Display’s (LPL) WOLED panels not on Sharp’s own OLED production. Hopefully a smaller, more profitable Sharp will be the result of the Kameyama #2 sale…
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