Nintendo is constantly trying to keep up with Switch demand, which means they need to get as many units manufactured as possible. That's why the Big N. is teaming with Sharp to bump up production.
According to "people directly involved in the matter," Nintendo and Sharp are working together to manufacture Switch units. Switch hardware is being pumped out at Sharp's facility in Malaysia, and they'll be working at maximum capacity through the end of the year in order to try and meet demand.