Foxconn Ventures into Advanced Packaging, Sharp to Follow with Production Capacity in 2026

According to a report from Economic Daily News, Foxconn Group is advancing into the field of advanced packaging with a strategic alliance between Taiwan and Japan, focusing on the trending panel-level fan-out packaging (FOPLP). Following Innolux’s related developments in Taiwan, another of Foxconn’s invested companies, Sharp, has announced its entry into panel-level fan-out packaging in Japan, with production capacity expected in 2026.

Foxconn Group already possesses a comprehensive capability in the AI sector, and with the key advanced packaging technology now in place, they are fully mobilized. On the other hand, Sharp is undergoing a major transformation, which also benefits Foxconn— as its subsidiary Foxconn Technology is a major shareholder in Sharp, and Pan International is a partner with Sharp, both of which stand to gain from this transformation and provide support for it.

Pan International has previously collaborated with Sharp in areas such as wire harnesses, PCBs, and optical components, and has also acted as a distributor for Sharp’s panels and optoelectronic components. With Foxconn Chairman Young Liu concurrently serving as Sharp’s chairman, along with Sharp scaling down its panel business and expanding its semiconductor operations, there is significant interest in whether there will be new collaborations between the two companies.

Earlier, Sharp announced that it is partnering with Japanese electronic component manufacturer Aoi Electronics to advance into the field of advanced packaging. Reportedly, an agreement has been signed between Aoi, Sharp, and Sharp Display Technology, under which Aoi will utilize Sharp’s panel facilities to build a semiconductor back-end process production line. In 2024, Aoi will establish an advanced semiconductor panel packaging production line at Sharp’s Mie Plant, aiming for full-scale production by 2026 with a monthly capacity of 20,000 wafers.

Nikkei previously reported that Sharp continues to downsize its panel plants while expanding semiconductor production. Sharp noted that the advanced packaging production line will be used to produce Aoi’s FOLP. According to the agreement, the three companies are considering cooperation in the semiconductor back-end process to expedite the establishment of production lines and achieve full-scale production.