[News] Intel Reportedly Utilizes Sharp’s LCD Panel Factory for Semiconductor Backend Process

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Converting LCD panel factories into semiconductor bases seems to emerge as one of the latest trends in the semiconductor industry. According to a report by Nikkei News, Intel plans to utilize Sharp’s LCD panel factory in Japan, and collaborate with Japanese companies to develop semiconductor production technology.

Intel will reportedly collaborate with 14 Japanese suppliers, including Omron, Resonac, and Murata Machinery, to develop “backend process” technologies responsible for semiconductor assembly. They plan to use Sharp’s LCD panel factory as a research and development site, as the target locations potentially being Sharp’s Kameyama plant or Mie plant.

For display manufacturers, their ability to effectively control contaminants in the manufacturing environment directly impacts the fluctuations in yield. LCD panels, like semiconductors, suffer from decreased yield if even minute dust or particles are introduced during the manufacturing process. Thus, LCD panel factories are equipped with clean rooms designed to minimize dust and particles, making them suitable for both production and semiconductor research and development.

The report also stated that in addition to Intel, Rapidus, which aims to mass-produce cutting-edge 2-nanometer chips, and Mitsubishi Electric will also utilize existing LCD factories for semiconductor research and development.

In mid-May, per another report by Nikkei, Sharp decided that Sakai Display Products (SDP), its 10th generation panel factory, which produces large-sized LCD panels for TVs, would cease production by the end of September. Additionally, production of medium and small-sized LCD panels would be reduced. Instead, the company intends to seek collaboration with other companies and optimize its factories to improve profitability.

According to the report, currently, Sharp produces medium and small-sized panels at its Kameyama, Mie, and Hakusan factories. Daily production at Kameyama’s second factory is expected to decrease from 2,000 panels to 1,500, while production at Mie’s third factory will drop from 2,280 panels to 1,100, a 52% reduction, while the OLED production line at the Tenjiku factory will be closed.

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• Sharp Announces Closure of Sakai Gen 10 Line, Supply Cut of 5 Million TV Panels Expected in 2025, Says TrendForce

(Photo credit: Intel)