Japanese electronics giant Sharp is continuing to advance its business restructuring strategy, with plans to formally close its LCD panel subsidiary "Sharp Yonago" by the end of July 2026. This decision marks another significant contraction of Sharp's presence in the LCD panel sector and represents the company's latest move to address persistent losses in its display business.

Sharp held an employee briefing on January 28, announcing specific support measures to approximately 160 employees, including job transition assistance and enhanced severance packages. The disposition plan for the factory's land and buildings has not yet been finalized.

Sharp Yonago: From Fujitsu Subsidiary to Sharp Affiliated Facility

The history of "Sharp Yonago" dates back to Fujitsu's LCD subsidiary. In 2005, Sharp acquired full ownership and renamed the company to its current name, primarily undertaking the production of small-to-medium sized LCD panels for Fujitsu. Sharp Yonago once held a notable position in Japan's LCD industry chain. however, since ceasing production in 2019, its business focus has shifted to providing supporting services such as production equipment cleaning and panel repairs for other facilities. Regrettably, this transformation failed to reverse its operational difficulties. As the global LCD panel market landscape underwent dramatic changes, the business value of Sharp Yonago continued to erode.

According to financial data released by Sharp in November 2025, in the second quarter of fiscal year 2025 (July–September 2025), the segment's revenue declined 18.0% year-over-year to 102.6 billion yen, while operating losses widened sharply from 1.6 billion yen in the same period last year to 6.2 billion yen.

Strategic Contraction: From Sakai Factory to Yonago Factory

The closure of the Sharp Yonago facility is not an isolated incident but rather a continuation of Sharp's strategic contraction in the LCD business. In August 2024, Sharp's Generation 10 panel plant "SDP" in Sakai City was completely shut down, marking the end of an era for domestic television panel manufacturing in Japan. This facility was once the world's first Generation 10 LCD panel production line, but after losing price competitions with Chinese and Korean manufacturers, it was ultimately forced to exit the market. Furthermore, Sharp plans to sell its second LCD panel factory located in Kameyama City, Mie Prefecture, to its parent company Hon Hai Precision Industry (Foxconn), with the transaction expected to be completed by August 2026. Sharp will retain its first Kameyama factory, focusing on the production of higher-margin automotive LCD panels.

Future Outlook

Sharp plans to release its latest quarterly financial report on February 10, at which time management may disclose additional restructuring details. However, the prospects for recovery in the LCD panel market remain uncertain, with persistent pressure from price competition. For Sharp, the key to determining its future destiny will lie in how it cultivates new growth engines while divesting loss-making operations.

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