Sharp Sakai Factory fully suspended production: about 500 employees voluntarily resigned
Sharp Corporation announced the complete shutdown of its display product company in Sakai City, marking the end of the era of Japanese television panel manufacturing. Approximately 500 factory employees voluntarily resigned, and SDP has reduced production since June. Sharp used to dominate the LCD TV field but faced difficulties in its display business due to a failed price war, leading to losses in the 2022 fiscal year. In the future, Sharp plans to integrate semiconductor components into LCD panels and stop selling this product to partners
On August 22, DoNews reported that Sharp Corporation announced that its subsidiary "Sakai Display Products Corporation (SDP, Sakai City)" has completely ceased production.
This factory was the only factory in Japan that produced LCD panels for televisions. With the cessation of production at the Sakai factory, domestically manufactured television panels in Japan have become a thing of the past.
According to Kyodo News, SDP has been reducing panel production since June this year, with around 500 out of approximately 800 employees opting for voluntary retirement. Following this, SDP will provide subsidies equivalent to up to 24 months of monthly income based on the employees' ages.
In 2022, Sharp transformed the LCD giant "Sakai Display Products Corporation" into a wholly-owned subsidiary for approximately $296 million (about RMB 2.1 billion at the current exchange rate). In fact, SDP was previously a consolidated subsidiary of Sharp, but later transitioned to joint operation with Hon Hai Precision Industry Co., Ltd.
In the 1980s and 1990s, Sharp almost single-handedly promoted the popularization of LCD televisions, becoming a leading company in the LCD TV industry and earning the title of "Father of LCD."
The company mainly produces large LCD panels for televisions. However, it faced defeat in price wars with overseas companies from China and South Korea, leading to continued struggles in the display business. Sharp has once again fallen into a final loss position after 5 years in the fiscal year 2022 (ending in March 2023).
In the future, the company plans to integrate semiconductor components into large LCD panels and commercialize them as television displays. The company aims to stop selling this product to its business partners by the end of March 2025
