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)

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.

Read more

• [News] Innolux Confirms Sale of Tainan Plant 4, with Micron & TSMC Reportedly in the Bidding Stage
• [News] Venturing into AI, Innolux Reportedly Partners with Memory Giants, While Its 4th Plant in Tainan to Focus on Packaging Applications

(Photo credit: Innolux)

A previous report from Economic Daily News once reported that, Innolux is set to sell its 4th Plant in Tainan (5.5-generation LCD panel plant), which was closed in 2023. Moreover, the report has cited rumors in the market, claiming that both Micron and TSMC have been actively exploring the acquisition.

Eariler on August 1st, the latest report from MoneyDJ further suggests that TSMC is almost certain to secure the deal, primarily to expand its CoWoS capacity. Regarding this matter, neither company has commented on these market rumors.

On July 30, Innolux announced its plan to dispose of the TAC plant-related real estate at the Southern Taiwan Science Park (STSP) D section, so as to bolster operational funds. To expedite the process and meet business needs, the board authorized Chairman Jim Hung to negotiate terms and sign relevant contracts with potential buyers.

Reportedly, the sale price must not be lower than the asset’s book value in the most recent financial statements, taking into account professional valuation reports and market information.

The recent trend of FOPLP (Fan-Out Panel Level Packaging) is said to have fueled speculation and discussions about Innolux’s plant sale, leading to rumors that TSMC is on the verge of announcing the purchase.

Yet, per MoneyDJ, TSMC’s current FOPLP applications in the AI field primarily involve stacking on rectangular substrates, integrating them into 2.5D and 3D packages. Initially, TSMC prefers to complete the entire FOPLP process in-house, integrating the front-end and back-end technologies of the 3D fabric platform.

For Innolux, besides gaining considerable non-operating income, this opportunity also raises the prospect of future collaboration.

Notably, this rumored move comes as construction at TSMC’s first P1 plant in the Southern Taiwan Science Park’s Chiayi Campus was halted due to the discovery of potential archaeological remains.

With P1 construction paused, TSMC has prioritized the construction of the second plant (P2). However, current capacity is very tight, and the time required to complete and ramp up P2 to mass production may not meet customer demand. The long-term substantial demand has driven TSMC to seek additional suitable locations in advance.

It is indicated by MoneyDJ that though TSMC’s Chiayi plant is currently facing delays due to the archaeological site issue, Chiayi is still planned to be a major hub for CoWoS production in the long term, with six phases planned. Previously, the company had considered expanding SoIC (System on Integrated Chips) production in Yunlin, but has recently decided to put those plans on hold.

Overall, the latest industry estimates suggest that CoWoS monthly capacity could reach about 35,000 to 40,000 wafers this year. On 2025, if outsourcing to packaging and testing subcontractors is included, capacity could potentially exceed 60,000 wafers, or even more next year.

Read more

• [News] Innolux Confirms Sale of Tainan Plant 4, with Micron & TSMC Reportedly in the Bidding Stage
• [News] TSMC Halts Chia-Yi Plant Construction Due to Relic Found, Quickly Initiates Preparation for 2nd Plant

(Photo credit: Innolux)

After announcing the end of eight consecutive quarters of losses on July 30, according to a report from Economic Daily News, Innolux’s board of directors decided to authorize Chairman Jim Hung to handle real estate matters, confirming the rumors that the buildings at its 4th Plant in Tainan (5.5-generation LCD panel plant), which was closed last year, will be sold.

It is reported that two buyers, Micron and TSMC, are still in the bidding stage. Regardless of who wins the bid, Innolux will gain significant non-operating income.

According to Innolux’s announcement, to boost company operations and future development momentum, as well as to enhance operating funds, they plan to dispose of the TAC plant-related real estate at the Southern Taiwan Science Park (STSP) D section. Per a report from anue, the STSP D section refers to the 5.5-generation LCD panel plant that was closed last year.

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 Fan-Out Panel Level Packaging (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.

Regarding the 4th Plant developments at Tainan, as per a previous report from the Economic Daily News, Innolux stated on June 16 that, based on flexible strategic planning principles, the company continues to optimize production configurations and enhance overall operational efficiency. Some production lines and products are being adjusted to streamline and strengthen the group’s layout and development.

Read more

• [News] Venturing into AI, Innolux Reportedly Partners with Memory Giants, While Its 4th Plant in Tainan to Focus on Packaging Applications
• [News] TSMC Pushes for FOPLP Mass Production by 2027, Reportedly Eyeing on Innolux’s Plant

(Photo credit: Innolux)

To continue advancing Moore’s Law, TSMC Chairman and President C.C. Wei personally confirmed that FOPLP (Fan-Out Panel-Level Packaging) is in full swing. According to a report from Commercial Times, TSMC has established an R&D team and production line, currently still in the initial stages. Wei further forecasted that related achievements might be seen within three years.

Additionally, the sources cited by the same report also revealed that TSMC is interested in acquiring Innolux’s 5.5-generation LCD panel plant as well, partnering with Taiwanese companies to tackle new packaging processes. However, TSMC has not confirmed these rumors but emphasized that the company is continuously searching for suitable locations for expansion.

On average, die size continues to grow by 5-10%, reducing the number of chips that can be extracted from a single wafer and further squeezing wafer and advanced packaging capacity. Industry sources cited by Commercial Times believe that converting from wafer-level to panel-level packaging is more cost-effective.

Moreover, in response to Intel’s plan to mass-produce the industry’s first glass substrate technology for next-generation advanced packaging between 2026 and 2030, TSMC has started researching related glass substrate technologies to meet customer demands.

TSMC introduced the FOWLP technology named InFO (Integrated Fan-Out) in 2016, first used in the iPhone 7’s A10 processor. Subsequently, assembly and testing facilities actively promoted FOPLP solutions, looking to attract customers with lower production costs.

Currently, per the sources cited by Commercial Times, InFO has only one customer. Fan-Out packaging is a familiar area for TSMC, and future HPC (high-performance computing) clients like NVIDIA and AMD might adopt next-generation advanced packaging technology, replacing existing materials with glass substrates.

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(Photo credit: TSMC)