Chennai – Foxconn-backed Japanese tech giant Sharp is actively seeking partnerships in India to establish a display manufacturing facility, under the India Semiconductor Mission (ISM) scheme, according to sources familiar with the matter. Sharp has initiated discussions with several Indian companies, and top executives from its display division have already met with potential partners. One insider shared that the response has been encouraging, and negotiations have progressed, with a formal announcement expected by the end of the year.
“Sharp has successfully set up display manufacturing plants for partners in countries like China, Korea, and Taiwan,” one source revealed. “In India, they plan to follow a similar model, collaborating with a strong local player who will spearhead the project while Sharp provides its technical expertise.”
Sharp’s Indian focus is expected to center around large displays, which aligns with growing demand in the market.
Earlier reports indicated that Sharp is planning an investment of $3-5 billion to establish the display facility in India. The debt-stricken Japanese company is looking at India as a strategic opportunity to breathe new life into its business, another source explained.
Prabhu Ram, head of Industry Intelligence Group at market research firm CMR, believes this partnership could be a win-win. “Sharp’s expertise in display technology combined with a strong Indian partner could enhance its market position and business prospects in India’s booming electronics sector,” he said.
The venture could help Sharp cater to the increasing demand for large screens while reaping the benefits of local manufacturing, added Ram.
Sharp has been through tough times in recent years. In 2016, Foxconn acquired the troubled company with the goal of turning it around. But last year, Foxconn, known for assembling iPhones, reported a significant 56% drop in net profits to $416 million, largely due to a $541-million loss from Sharp’s write-down.
As Foxconn continues to grow its presence in India with an ambitious diversification strategy beyond smartphone production, having Sharp establish a display fab could align well with its broader goals. Foxconn Chairman Young Liu, during a recent visit to India, shared plans to branch out into sectors such as information and communication technology (ICT), electric vehicles (EVs), batteries, and more.
“Foxconn’s connection with Sharp is strategically important,” said CMR’s Ram. “For Foxconn, setting up a display facility offers an opportunity to leverage its strengths and diversify into a broader range of electronic products.”
As of Thursday, Sharp had not responded to queries regarding the potential partnership.
Yoshio Tamura, president of Asia at DSCC (a Counterpoint company), noted that earlier this year, Sharp exited the large-area LCD market. “Sharp is now focusing on specialized small and medium LCD displays for sectors like automotive and extended reality (XR),” Tamura said. “We believe that Sharp’s role in India would likely be as a technology partner or part of a joint venture aimed at advancing India’s display manufacturing roadmap.”
