March 22 news, according to Kyodo News reported that Sharp (Sharp) is considering reducing the LCD panel business caused by the main cause of loss, Sakai factory's tenth generation LCD panel factory Sakai Display Product (Sakai Display Product; SDP is likely to be sold or discontinued in June. Whether to implement the measure depends on the wishes of Sharp's parent company, Hon Hai.

The Sakai plant was the main reason for Sharp's two consecutive years of losses in the fiscal year ending March 2024, Kyodo News reported, citing people familiar with the matter. Sakai has been in deep trouble due to the ongoing downturn, and halting production will be an option to be considered in the medium-term business plan announced in May. However, Sharp still has to coordinate with its parent company Hon Hai before making a final decision, and there could still be some twists and turns.

In addition to the Sakai plant, Sharp also has plants in Shirayama, Kameyama and Mie in Japan to produce small and medium-sized LCD panels for cars and tablet computers. According to the report, the three plants are likely to remain, but the details are still to be finalized.

Sharp invested about 430 billion yen to build a new panel plant in Sakai, Osaka Prefecture, in 2009, when it expected global demand for LCD TVS, which had been performing well, to continue to expand, but aggressive expansion of Chinese panel factories and price competition, coupled with South Korean manufacturers launching OLED (organic light-emitting diode) TVS, successfully captured the market. Sakai factories have been losing money for years.

For related news, Xie Qinyi, senior research director of Omdia display department, said yesterday (21) that if the SDP is rumored to be closed in June this year, the supply will decrease for the panel industry, which will help stabilize panel prices.

Xie Qinyi pointed out that the SDP closure news passed once last year, and this rumor seems to be closer to the truth. Sakai's 10-generation line has a monthly production capacity of about 70,000 glass substrates, or 5 million to 6 million a year based on TV panels, he said. The product portfolio is to produce TV panel sizes 42 ", 60 "and 70", non-10.5 generation line mainstream sizes 43 ", 65 "and 75". If SDP is closed, it will cause procurement difficulties for TV brand factories with smaller output sizes and must be transferred to mainstream sizes.

Xie Qinyi analysis, Sakai factory capacity has little impact on the overall TV panel market, but the impact on the psychological level is great.  It can also be used in the Spring Festival holiday to violently reduce the capacity operation rate to 60%, contributing to the price rebound, because the mainland panel factory has mastered the main capacity and mainstream size. Less than a Japanese panel factory, the land panel market share has increased, and it can consolidate the right to speak.

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