Sharp Corporation, backed by Foxconn, is actively searching for an Indian partner to establish a display fabrication facility under the Indian government’s Semiconductor Mission (ISM) initiative, according to sources familiar with the matter. The Japanese tech giant, known for its expertise in display technologies, is keen to set up a large-scale display fab in India, capitalizing on the growing demand for electronics in the country.
Sharp is in advanced discussions with several potential Indian partners, and top executives from its display division have held meetings with various companies. “They have received positive responses, and the talks are progressing. They are likely to finalize a partner by the end of this year,” said one source.
The company is considering a strategy similar to its previous ventures in countries like China, Korea, and Taiwan. In those cases, Sharp provided the technical know-how while a local partner spearheaded the projects. The same approach is expected in India, where a strong domestic partner will lead the project with Sharp contributing its technical expertise.
Sharp’s focus for the Indian market will primarily be on large display panels. Earlier this year, reports surfaced indicating that Sharp might invest between $3-5 billion to establish the display fab in India, which is part of its broader effort to tap into the expanding electronics manufacturing sector.
Industry experts believe that this move could help revitalize Sharp’s business. Prabhu Ram, head of the Industry Intelligence Group at CMR, a market research firm, noted that the collaboration with an Indian entity could strengthen Sharp’s market presence. “This initiative will allow Sharp to cater to the growing demand for larger displays, while benefiting from local manufacturing capabilities,” he said.
Sharp, once a leader in liquid crystal display (LCD) technology, has seen its dominance decline, with Chinese manufacturers like TCL CSOT and BOE taking over much of the global market. In 2016, Foxconn acquired Sharp in an effort to turn the company around. However, in 2022, Foxconn reported a 56% drop in net profit, primarily due to losses linked to Sharp.
Despite these setbacks, Foxconn is steadily increasing its footprint in India. During a recent visit, Foxconn chairman Young Liu mentioned the company’s plans to expand beyond smartphone manufacturing into sectors such as electric vehicles (EVs), batteries, and information and communication technology (ICT) products. As part of this broader strategy, it’s involvement in setting up a display fab in India is seen as a key move.
“Foxconn’s stake in the company and its growing presence in India makes this development significant,” said CMR’s Prabhu Ram. “The display fab offers a strategic opportunity for Foxconn to diversify its production capabilities across multiple electronic products.”
It’s recent shift away from large-area LCD production, focusing instead on specialized small and medium LCD displays for automotive and extended reality (XR) applications, could align well with India’s evolving electronics sector.
Industry veteran Yoshio Tamura, president of Asia at DSCC, remarked, “We estimate that it’s role in India will likely be as a technology partner or joint venture player, contributing to the country’s display fab ambitions.” As India seeks to develop its semiconductor and display manufacturing capabilities, Sharp’s potential partnership marks a significant step forward in advancing the local electronics ecosystem.
