[News] TSMC Acquires Innolux’s Plant in Southern Taiwan to Expand Advanced Packaging Capacity

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TSMC is significantly expanding its production, continuously increasing its facilities. On August 15, as per a report from Liberty Times Net, the company announced that it had signed a contract with panel manufacturer Innolux to purchase its plant and associated facilities located in the Southern Taiwan Science Park.

The building’s total area exceeds 96,000 square meters, with a transaction value of NTD 17.14 billion, which is much lower than the rumored market price of over NTD 20 billion. TSMC announced that the facility will be used for operations and production.

Innolux recently announced the sale of 4th Plant in Tainan (5.5-generation LCD panel plant). A previous report from Economic Daily News once cited rumors, claiming that both Micron and TSMC have been actively exploring the acquisition.

Moreover, it was also reported that TSMC offered a price 20% higher than the base price, with plans to use the facility to expand its advanced process or advanced packaging capacity.

According to Liberty Times Net citing sources at the Southern Taiwan Science Park, TSMC’s original plant is located in the northwest part of the park, while the newly acquired Innolux plant is situated in the southwest, so they are not adjacent.

TSMC had previously purchased a plant from Hannstar and demolished and rebuilt it, as the planning of panel plants differs from that of fabs. TSMC also acquired a plant from E-Ton Solar Tech in the Southern Taiwan Science Park, which is currently being used as an intelligent warehouse.

Based on Innolux’s post-capital-reduction share capital of NTD 79.8 billion, the sale is expected to contribute around NTD 1.84 per share in earnings.

Read more

• [News] Innolux’s 4th Plant in Tainan Reportedly to be Secured by TSMC
• [News] Innolux Confirms Sale of Tainan Plant 4, with Micron & TSMC Reportedly in the Bidding Stage

(Photo credit: Innolux)