According to a report from Economic Daily News, Innolux President James Yang announced on August 5 that the company is advancing its semiconductor fan-out panel-level packaging (FOPLP) with three key processes, targeting to enter mass production as soon as year-end.
The chip-first process technology, set to be the first to reach mass production by the end of this year, is expected to significantly contribute to revenue by the first quarter of next year.
Additionally, the RDL-first process, which target mid-to-high-end products, is anticipated to enter mass production within one to two years. The most technically challenging Through-Glass Via (TGV) process, being developed in collaboration with partners, will require another two to three years before it can be mass-produced.
At yesterday’s earnings call, there was significant interest in whether Innolux’s 4th Plant in Tainan (5.5-generation LCD panel plant) would be sold to Micron or TSMC.
Innolux Chairman Jim Hung stated that, in addition to quantifying the value of the sale, it is also important to consider the qualitative aspect, such as the potential new business opportunities that the deal could bring for both parties.
He further pointed out that while 5.5-generation plants are not the most competitive in the panel industry, they could still be valuable to other manufacturers. The sale of this asset is expected to contribute to Innolux’s non-operating income.
Regarding the recent focus on FOPLP (Fan-Out Panel-Level Packaging) mass production progress, Jim Hung emphasized that Innolux’s technology is already prepared.
James Yang explained that Innolux’s panel-level fan-out packaging technology will initially be applied to mid-to-low-end products, with plans to later expand into mid-to-high-end products.
He added that by entering the FOPLP field, Innolux aims for this technology to become a part of the AI PC industry, viewing the asset disposal as an opportunity to develop new business models and collaborations.
Previously reported by Economic Daily News, Innolux has been promoting the transformation of its fully depreciated old plants. The 3.5-generation line at the Tainan facility has been repurposed for advanced packaging with FOPLP, and the 4-generation line has been converted to produce X-ray sensors (through Raystar Optronics), both of which are related to semiconductor products.
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(Photo credit: Innolux)