According to persons with knowledge, Sharp, a Japanese firm sponsored by Foxconn, is aggressively looking for an Indian partner to establish a display fab under the India Semiconductor Mission's (ISM) initiative for display manufacturing facilities.

According to one of the individuals, Sharp is in negotiations with a number of Indian companies, and senior officials from its display vertical have met with possible partners. "They have received a positive response from some and are in advanced stages of discussion and should announce their partner by the end of the year," added the individual.

They are considering a similar approach in India as well, according to the source, in which they want to collaborate with a significant Indian company who would spearhead the initiative and offer their technological know-how.

Sharp is anticipated to concentrate on huge displays in India. Earlier this year, word spread that Sharp will be investing $3–5 billion to establish a display factory in India. According to another source, the indebted Japanese corporation is considering entering the Indian market as a way to boost sales. The planned company will benefit from Sharp's experience, according to Prabhu Ram, head of Industry Intelligence Group at market research firm CMR, and combining with a powerful Indian corporation may assist the Japanese firm strengthen its "market position and business prospects."

"This initiative would enable Sharp to meet the increasing demand for larger screens while capitalising on the advantages of local manufacturing," he stated.

Foxconn successfully acquired Sharp in 2016, aiming to turn around the struggling business. However, the Taiwanese contract manufacturer of iPhones announced a 56% decrease in net profit to $416 million in the previous year, citing a $541 million investment loss from Sharp's write-down as the primary factor.

Having Sharp establish a display factory might be beneficial for Foxconn as it broadens its presence in India through ambitious diversification ambitions that extend far beyond the production of smartphones. 

Foxconn chairman Young Liu had stated that the business will start producing goods for industries like information and communication technology (ICT), electric vehicles (EV), batteries, etc. while on a visit to India. "Foxconn's involvement, with its stake in Sharp, is notably significant," CMR's Ram said.

"For Foxconn, the display facility presents a strategic opportunity to leverage its capabilities and diversify its production across various electronic products."

By Thursday at press time, Sharp had not responded to any of the inquiries. According to Yoshio Tamura, president of Asia at DSCC, a Counterpoint firm, "Sharp has given up on large-area liquid crystal display (LCD) production earlier this year and will focus on specialized small/medium LCD display for auto, XR displays."

"We estimate that Sharp's move in India would be as a technology partner or joint venture to drive India's display fab roadmap." Sharp, a leader in the LCD display business, was beaten out by Chinese firms that had taken over the market. As of right moment, according to Tamura, the majority of LCDs are produced by Chinese companies such as TCL CSOT and BOE, American companies Tianma and Taiwanese Innolux.