[News] Micron Advances in Acquiring Innolux’s Southern Taiwan Facility After TSMC Outbids It for the G5.5 Plant

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According to a report from TechNews, after Innolux shut down its 5.5-generation plant last year, it initially planned to sell the facility to memory giant Micron. However, TSMC successfully acquired Innolux’s 4th Plant in Tainan and its associated facilities, with a transaction value of NTD 17.14 billion.

Despite this, industry sources cited by TechNews have hinted that Micron is still moving forward with plans to establish a facility in Tainan. They are reportedly negotiating with Innolux regarding the Tainan site and have begun subsequent planning.

Reportedly, it is known that Micron had previously approached AUO to inquire about the Tainan color filter fab, but this is still considered to be in the site-selection phase, with Longtan also mentioned as a possible location.

Given the high demand for Micron’s HBM products and persistent rumors about expanding in Taiwan, new facility construction seems necessary to accelerate HBM market penetration.

Additionally, Micron’s Taiwan Chairman, Donghui Lu, has publicly stated that Taiwan is a crucial part of Micron’s global advanced process and packaging strategy. Besides expanding in Taiwan and Japan, Micron is also considering further expansion in the United States.

Regarding inquiries about Micron, Innolux has stated that it does not comment on market rumors.

Industry source cited by TechNews have anticipated that Innolux’s continued reduction in capacity is expected, though the timeline for shutting down facilities remains undecided.

On August 15th, TSMC officially announced the acquisition of Innolux’s 5.5G manufacturing facility in Tainan, Taiwan, for NTD 17.14 billion.

Read more

• [News] TSMC Acquires Innolux’s Plant in Southern Taiwan to Expand Advanced Packaging Capacity
• [News] Innolux Targets to Begin FOPLP Mass Production by Year-End

(Photo credit: Micron)