Intel plans to utilize Sharp’s LCD panel factory in Japan and collaborate with Japanese companies to develop semiconductor production technology. Reportedly, Intel will partner with 14 Japanese suppliers, including Omron, Resonac, and Murata Machinery, to work on "backend process" technologies for semiconductor assembly. The intended use of Sharp's LCD panel factory is for research and development, with potential locations being Sharp's Kameyama or Mie plants.

Manufacturers of displays must control contaminants in the manufacturing environment effectively to avoid fluctuations in yield. Like semiconductors, LCD panels experience reduced yield due to even small particles during production; thus, LCD factories have clean rooms to minimize dust and particles, suitable for semiconductor research and development.

Along with Intel, other companies, such as Rapidus aiming to mass-produce advanced 2-nanometer chips, and Mitsubishi Electric, are also looking to use existing LCD factories for semiconductor R&D. In May, Sharp decided to halt production at its 10th generation panel factory, Sakai Display Products (SDP), which produces large LCD panels for TVs. Production of medium and small-sized LCD panels will also be reduced as Sharp plans to optimize its factories for better profitability through collaboration with other companies.

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