Sharp to halt Kameyama K2 LCD plant in August
Sharp plans to halt production at its Kameyama K2 facility, a Gen 8 LCD plant in Japan, from August 2026 and is seeking a potential buyer for the site, according to TrendForce. The decision could lead to short-term supply disruptions for Apple IT panels and e-paper applications.
The K2 plant has been a core asset in Sharp’s display operations. It produces panels for notebooks, tablets, smartphones, and e-paper devices, and has long supported Sharp’s position as Apple’s third-largest supplier of IT panels. The facility is also a key source of oxide backplanes used in e-paper products.
If production at K2 is scaled back as planned, TrendForce warns that short-term supply constraints could affect Apple’s MacBook and iPad models, as well as e-paper devices. Oxide LCD panels continue to account for a meaningful share of Apple’s IT product lineup, despite Apple’s gradual transition toward OLED technology.
Sharp stated that an earlier plan to transfer the K2 plant to parent company Foxconn did not materialise. The company has instead opted to halt operations in August as part of a broader restructuring effort. While the plant once held a competitive advantage through its oxide backplane technology – considered a benchmark for Apple’s MacBook and iPad panels – this lead has eroded as Korean and Chinese panel makers have expanded their oxide production capacity.
TrendForce estimates that current Apple orders support only around 16–17% utilisation at the K2 plant. The anticipated launch of OLED-based MacBook models later this year is expected to further reduce demand for high-end LCD panels from Apple. Uncertainty over future Apple orders is cited as a key factor behind Sharp’s decision.
In the near term, reduced capacity at K2 would likely benefit leading Korean and Chinese panel suppliers, which are expected to absorb displaced Apple demand. Beyond Apple-related business, the K2 plant has faced sustained pressure from expanding Chinese LCD capacity and lower-cost competition, resulting in declining orders from other customers.
TrendForce notes that while Sharp has announced plans to halt operations at K2, it remains unclear whether the company will fully shut down all capacity by August or retain partial production for key customers to maintain operational flexibility.
