Sharp to Halt Kameyama K2 in August; Apple IT Panels, E-Paper Supply at Risk

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On February 10th, Sharp announced plans to halt production at its K2 facility, a Gen 8 LCD plant in Kameyama (2160 x 2460 mm), and to seek a potential buyer for the site. The K2 plant has been a key pillar of Sharp’s display business, producing panels for notebooks, tablets, e-paper devices, and smartphones, and has long underpinned Sharp’s role as Apple’s third-largest IT panel supplier. It is also a critical source of oxide backplanes for e-paper applications. If output at the Kameyama K2 plant is scaled back as planned, the short-term supply of Apple’s MacBook and iPad models—as well as e-paper products—could face disruption.

Sharp stated that its earlier plan to transfer the K2 plant to parent company Foxconn did not materialize. Instead, the company has decided to halt operations at K2 in August as part of broader restructuring efforts. The plant’s competitive edge once stemmed from its industry-leading oxide backplane technology, serving as a benchmark for Apple’s MacBook and iPad panels. However, increasing investments from Korean and Chinese panel makers in oxide capacity steadily eroded Sharp’s technological advantage.

TrendForce estimates that current Apple orders support only around 16–17% utilization at the K2 plant. The upcoming launch of OLED versions of MacBook this year is expected to further crowd out demand for high-end LCD panels from Apple. Uncertainty surrounding future Apple orders is seen as a key factor behind Sharp’s decision to halt production. In the near term, oxide LCD panels will still account for a meaningful share of Apple’s IT products. Should K2 capacity be reduced in August, leading Korean and Chinese panel suppliers are expected to directly benefit.

Beyond Apple-related business, K2 has faced mounting pressure from expanding Chinese panel capacity and cost advantages, which have resulted in declining orders. Memory shortages and surging prices have also prompted customers to request that panel suppliers absorb part of the cost burden, further squeezing K2, which lacks strong cost competitiveness. With insufficient demand from non-Apple applications to maintain high utilization, the plant’s average unit costs have worsened and accelerated Sharp’s exit from large-generation LCD production.

Oxide backplanes play a crucial role in e-paper in reducing ghosting effects, minimizing input latency, and extending battery life, which is particularly important for large-format e-paper signage. This has positioned the K2 plant as a key supplier of oxide backplanes for e-paper devices. If production halts, Chinese panel makers that have been actively expanding oxide capacity are likely to take over orders. However, short-term disruptions could delay product upgrade cycles in the e-paper market.

TrendForce notes that while Sharp has announced its plans to shut down, it remains to be seen whether the company will fully wind down all capacity by August or retain partial production for key customers to maintain operational flexibility.