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Sharp to end production at Kameyama Plant No. 2 after Foxconn acquisition talks fail
Tuesday, February 10, 2026 at 10:49 AM
Sharp will cease production at its Kameyama Plant No. 2 around August 2026 following the failure of negotiations to sell the facility to Foxconn (Hon Hai Precision Industry).
Context
Sharp announced on February 10, 2026, that negotiations to sell its Kameyama Plant No. 2 to parent company Foxconn have collapsed. Consequently, the facility is scheduled to cease all production of small and mid-sized LCD panels by August 2026. Foxconn reportedly declined the acquisition after determining the deal offered insufficient strategic value amid a persistent global slump in display panel prices and intensifying competition from Chinese manufacturers.
This decision marks a significant escalation in Sharp’s strategy to exit the underperforming LCD sector and stabilize its balance sheet. As part of the restructuring, the company will solicit voluntary retirement for approximately 1,170 employees stationed at the plant. While previous discussions explored repurposing the site for AI server hubs or EV components, Sharp will now focus on selling the idle assets to external buyers after the shutdown to reallocate capital toward higher-margin segments like automotive displays and professional services.
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