On May 14, the internationally renowned electronics giant Sharp disclosed its financial report for 2023. During the reporting period, Sharp's display business achieved a cumulative revenue of 614.9 billion yen（4 billion dollars）, a year-on-year decrease of 19.1%; it incurred a loss of 83.2 billion yen（0.53 billion dollars）, which is a 25.3% increase in losses compared to the previous year. Due to the significant downturn in the display business, Sharp Group has decided to close its Sakai City factory (SDP Sakai factory).

Sharp, a century-old prestigious company in Japan and known as the father of LCDs, was the first to develop the world's first commercial LCD monitor and achieved remarkable success. Since its establishment, Sharp Corporation has been committed to advancing the industrialization of liquid crystal display technology. Sharp created the world's first 6th, 8th, and 10th generation LCD panel production lines, earning the title of "Father of LCD" in the industry. Fifteen years ago, the SDP Sakai factory G10, with the halo of "the world's first 10th generation LCD factory," started production, igniting a wave of investment in large-size LCD panel production lines. Today, the suspension of production at the Sakai factory may have a significant impact on the global capacity layout transformation of the LCD panel industry. The SDP Sakai factory, which operates an internationally leading G10 LCD panel production line, is also facing closure due to deteriorating financial conditions, which is quite a pity!

With the closure of the SDP Sakai factory, Japan will completely withdraw from large LCD TV panel manufacturing, and the international status of Japan's display industry is also gradually being weakened.

Despite the impending shutdown of the SDP Sakai Factory G10 having a minimal impact on global liquid crystal production capacity, it may hold significant importance in terms of the transformation of the global industry layout of liquid crystal panels and accelerating the reshuffling of the liquid crystal panel industry.

Industry experts have stated that LG and Samsung have always been regular customers of Japanese liquid crystal factories. Korean display enterprises aim to maintain a diverse range of suppliers for their liquid crystal panels to ensure supply chain diversity. With the cessation of production at SDP, it is expected to further strengthen the pricing power of Chinese display enterprises in the liquid crystal panel market. This is a microcosm of the global panel industry competition, Japan from the highlight moment to the gradual marginalization, South Korea taking over, and China's rising.