Thank you for the tip from TapTechNews reader Xichuang Jiushi! TapTechNews reported on May 14th that Sharp confirmed in today's mid-term business direction document the market rumors that its large LCD panel factory Sakai (pronounced as 'jie' in Chinese) display will be discontinued. According to Foxconn (Hon Hai Precision Industry) today, the Sakai display factory will be transformed into an AI data center. Sharp's fiscal year runs from April 1 of the current year to March 31 of the following year. According to official documents, Sharp has recorded losses for two consecutive years. Sharp believes that the main reason for the losses is that the display division has not been able to quickly respond to changes in the market environment. In addition to discontinuing the Sakai display and transitioning, Sharp will also make adjustments to the medium and small display tasks by reducing capacity and optimizing personnel to reduce fixed costs in this area. Specifically, Sharp plans to reduce the capacity of the second factory in Kameyama City from 2000 panels per day to 1500 panels, and also reduce the capacity of the third factory in Mie Prefecture from 2280 panels per day to 1100 panels. The OLED production line in Sakai will be closed and converted into a research and development line in the future.