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Sharp to Halt Kameyama K2 LCD Production After Foxconn Deal Collapses, Nudging Apple Panel Supply Risk

Analysts expect Apple to manage short-term panel risk given low K2 exposure.

Overview

  • Sharp confirmed the Foxconn acquisition fell through and said the K2 plant in Mie Prefecture will stop production in August.
  • About 1,170 employees will be offered voluntary retirement, and Sharp plans to book roughly ¥10 billion in restructuring losses this fiscal year with additional losses next year.
  • Foxconn withdrew citing weak LCD prices after initially planning to keep panel lines and add AI server production, and it is still evaluating the Kameyama complex for AI manufacturing.
  • The K2 factory has supplied oxide LCD panels for some MacBook and iPad models, and TrendForce warns of possible short-term disruption.
  • TrendForce estimates Apple represents only about 16–17% of K2 utilization and has several months to adjust, as Apple’s broader shift to OLED reduces longer-term reliance on these LCDs.