Under the India Semiconductor Mission, Japanese tech firm Sharp is reportedly seeking an Indian partner to establish a display fabrication plant focusing on large displays.
Sharp, a Japanese company backed by Foxconn, is seeking an Indian partner to establish a display fabrication facility under the India Semiconductor Mission (ISM), according to a report by the Economic Times.
Presently, Sharp is in discussions with various Indian companies, and executives from its display division have met with potential partners. A source mentioned to ET that they have received positive feedback and are in advanced talks, expecting to announce a partner by year-end.
The company aims to replicate its approach in countries like China, Korea, and Taiwan, looking for a strong Indian partner to lead the project while it provides technical expertise. In India, the project will focus on large displays, following earlier reports of its intention to invest $3-5 billion in a display fab.
Prabhu Ram, head of the Industry Intelligence Group at market research firm CMR, noted that this venture would enhance Sharp’s market position within India’s expanding electronics sector. The company will also be able to meet the growing demand for larger screens while benefiting from local manufacturing.
Foxconn, which acquired Sharp in 2016 to revitalise the company, faced challenges last year, reporting a 56% decline in net profit largely due to investment losses linked to Sharp. As Foxconn broadens its operations in India beyond smartphone manufacturing, establishing a display fab could also enhance its prospects.
During a recent visit to India, Foxconn chairman Young Liu indicated plans to expand into information and communication technology, electric vehicles, and batteries. CMR’s Ram highlighted that Foxconn’s involvement with Sharp is significant, presenting a strategic opportunity to diversify production across various electronic products.
However, Sharp has not yet made any official claims. Yoshio Tamura, president of Asia at DSCC, noted that the company has shifted its focus from large-area LCD production to specialised small and medium LCDs for automotive and XR displays.
He suggested Sharp’s move in India would likely be as a technology partner or joint venture to advance India’s display fab roadmap.
Once a leader in the LCD display market, Sharp has lost ground to Chinese firms that dominate the industry. Currently, primary LCD production comes from companies like TCL CSOT, BOE, Tianma, and Innolux.
Tamura explained that while Samsung and CSOT are involved in module assembly, there is no significant incentive yet to establish fabs in India due to a lack of duty differentials.
