With the surge in new applications like AI, advanced packaging remains a hot topic, particularly with FOPLP (Fan-Out Panel Level Packaging) technology gaining renewed attention. According to sources cited by a report from MoneyDJ, leading semiconductor foundry TSMC has officially formed a team, currently in the “Pathfinding” phase, and is planning to establish a mini line with a clear goal of advancing beyond traditional methods.

TSMC introduced the FOWLP (Fan-Out Wafer Level Packaging) 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, yet faced ongoing technical challenges. Therefore, current terminal applications remain within mature processes, such as PMIC (Power Management IC) products.

However, per the sources cited by the same report, TSMC’s move to transition advanced packaging technology from wafer level to panel level is more than just talk—it’s becoming a reality. It is reported that TSMC is planning to use rectangular substrates measuring 515mm by 510mm, with a dedicated team already conducting research and planning to establish a mini line.

The source further mentioned that, TSMC’s development of FOPLP can be seen as a rectangular version of InFO, offering advantages such as lower unit costs and larger package sizes.

This advancement could further integrate other technologies on TSMC’s 3D fabric platform, paving the way for 2.5D/3D advanced packaging solutions to serve high-end product applications. This approach could be regarded similar to a rectangular CoWoS, currently targeted at the AI GPU sector with NVIDIA as a customer. If progress continues smoothly, these developments could potentially debut between 2026 and 2027.

On the AMD front, it is understood that their initial partners for FOPLP are ASE Technology and PowerTech Technologies, with potential applications in PC or gaming console chips. Reportedly, it’s suggested that previous packaging methods for PCs and gaming consoles primarily used FC-BGA, but upcoming new products may potentially upgrade to CoWoS level.

Sources cited by the report note that in the early stages of FOPLP, players like PowerTech Technologies, Innolux, and ASE Technology faced challenges and intermittent demand. To allocate resources effectively, equipment suppliers have been conservative in their investments in related fields, focusing mainly on adjusting specifications to meet customer demands. With TSMC now officially joining, equipment suppliers are shifting to a more proactive stance in preparation for upcoming developments.

In summary, the development of the FOPLP ecosystem hinges largely on TSMC’s role. TSMC is expected to maintain leadership in the high-end segment, while packaging and testing firms will cater to the mid-to-high-end markets. Semiconductor experts believe that in the realm of high-speed computing, CoWoS will remain mainstream for the next 3 to 5 years, with advanced 3D packaging like SoIC gaining prominence in high-end applications, solidifying TSMC’s position as a key player.

For packaging and testing companies, the key lies in product upgrades that offer cost-effectiveness. The success of FOPLP as the next generation of advanced packaging hinges on how chip manufacturers position their products, address yield issues related to warpage, and ensure overall performance and pricing that justify customer investment.

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(Photo credit: TSMC)

Taiwanese panel company Innolux have said to be involving in collaborating with leading global memory manufacturers. According to a report from the Economic Daily News, plans are underway to repurpose its 4th Plant in Tainan (5.5-generation LCD panel plant) for AI-related semiconductor applications, specifically targeting back-end packaging.

Sources cited in the report indicate that, based on the strategies of the top three global memory manufacturers, the partner in this collaboration is likely a memory manufacturer that already has a presence in Taiwan and seeks to expand its capacity there. Innolux’s advantage lies in its advanced panel-level fan-out packaging (FOPLP), which is poised to make a substantial impact in the AI field. However, these reports have not been confirmed by Innolux or any global memory giants.

Regarding the 4th Plant developments at Tainan, 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.

The surge in AI demand has driven the need for advanced chip heterogenous integration and high-end packaging technologies to meet the high-performance application requirements of AI devices. Targeting these opportunities, Innolux has reportedly repurposed its Tainan 3.5-generation and 4-generation LCD panel production lines for semiconductor-related uses, including FOPLP and X-ray sensors.

Sources cited in the report also revealed that Innolux’s transformation efforts are making progress. After closing the 5.5-generation LCD panel production at the 4th Plant last year, the company has gradually reassigned staff to other facilities. To revitalize capacity and assets, Innolux has been in close contact with leading global memory manufacturers, aiming to develop AI-related applications.

Currently, the three major global memory manufacturers are actively developing high-bandwidth memory (HBM) for AI servers. South Korea’s SK Hynix is the most proactive in collaborating with Taiwanese companies. SK Hynix has partnered with TSMC to aggressively target the AI market. As per a report from Korean media outlet The Korea Herald,  SK Group Chairman Chey Tae-won recently visited TSMC Chairman C.C. Wei to ensure continued close cooperation on the next-generation HBM.

On the other hand, Micron has established memory production in Taiwan but does not yet have HBM capacity for AI servers in the region. Meanwhile, Samsung does not have direct AI cooperation with Taiwanese companies in the memory sector.

Sources cited in the report from Economic Daily News indicate that Innolux is engaging with one of these three major international memory manufacturers, focusing on new semiconductor applications. As Innolux is advancing into the promising glass substrate packaging business through panel-level fan-out packaging, this technology is expected to be combined with memory applications for AI development. Therefore, the developments at its 4th Plant in Tainan are receiving considerable attention.

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(Photo credit: Innolux)

From May 14th to 16th, the international display industry’s leading event, SID Display Week 2024, was held in San Jose, USA. Major panel manufacturers such as BOE, TCL CSOT, Tianma, Visionox, Innolux, AUO, Samsung Display, and LG Display showcased a variety of new technological products. TrendForce will review and summarize the development focuses of various panel manufacturers from a technical perspective.

• 3D Display Makes a Comeback, Focusing on Glasses-Free Immersive Experience

3D visual perception is currently the most intuitive way humans perceive the world. Compared to AR/VR, which requires additional wearable devices, glasses-free 3D technology allows users to enjoy a lifelike visual experience without the need for glasses or headsets.

With significant improvements in display quality and user experience, this technology can now be applied to museum exhibits, outdoor advertising, medical education, and more. It has the potential to compete with emerging head-mounted devices in the future.

At the exhibition, in addition to 2D/3D switching, there were light-field displays that enhanced monocular resolution to retinal levels. Coupled with facial tracking and active human-machine interaction systems, these displays expanded the viewing range and 3D viewing angles, delivering an immersive and impressive desktop 3D display experience.

BOE: 110”16K 3D Display & 32”Light Field Display

LGD: Micro OLED+ Light Field Display

• Performance – Enhancing Efficiency to Meet AI Era Demands for Improved Image Quality and Reduced Power Consumption

Addressing the power consumption issues brought about by enhanced image quality can be achieved through various technological advancements such as pixel design, tandem architecture, AI intelligence, micro-lens arrays, oxide backplanes, and dynamic refresh rates. These innovations aim to improve image quality while simultaneously reducing power consumption.

For instance, oxide backplanes have significantly lower leakage currents compared to LTPS backplanes. Combined with new circuit designs, they can maintain voltage for extended periods, keeping flicker within a certain frequency during low-frequency refreshes. Dynamic refresh rates allow the screen’s refresh rate to adapt based on the content displayed, aligning refresh rates with display signals in real-time to provide longer battery life.

With the rapid development of artificial intelligence, AI technologies are being leveraged to enhance image quality while reducing screen power consumption (AI low-power image enhancement technology). The deep integration of AI with screens enables real-time image processing at high resolutions and refresh rates, reducing the power consumption of panel modules and achieving an optimal balance between reduced power consumption and improved image quality.

BOE: AIoT + OLED AI Power Reduction Technology

• Folding – Diversified Folding Designs Expanding Application Scenarios

At the exhibition, panel manufacturers showcased the durability of foldable screens through tests involving robots randomly striking the displays, demonstrating that foldable screens can now meet the demands of most usage scenarios.

In addition to the conventional inward and outward folding screens already available on the market, the exhibition also featured G/Z-shaped tri-fold phones and new foldable plus extendable display panels, allowing users to switch between different screen sizes based on application needs.

The introduction of various flexible display forms includes innovations such as the removal of polarizers, simplified hinges, and stress-designed screens, preparing for a variety of user experiences and interaction modes with the new foldable display panels. These complex module designs are expected to drive technological innovation within the supply chain.

SDC: Foldable OLED Reliability Test

SDC: Flex Note Extendable (Folding+ Sliding) Display Size: 13.8” -> 17.3”

SDC: Flex S Multi Foldable Display (Z-Shaped)

• Transparent Displays – Enhanced Transparency Technology for Better Integration with Environments

Once a futuristic display technology with a sci-fi aura, transparent displays are now being gradually applied in commercial, automotive, and everyday scenarios by various brands. Transparent displays transform glass from a mere transparent material into a display product with vast imaginative potential and rich content.

The key to enhancing screen transparency lies not only in the transparency of the substrate but also in effectively increasing the pixel aperture ratio to maintain image quality. Historically, Micro LED screens have achieved transparency rates of over 60%, while OLED screens have been around 40%. With recent technological improvements, the OLED screens showcased at this exhibition have now reached a 60% transparency level, matching that of Micro LED screens.

The future of transparent displays will be shaped by continued advancements in transparency, image quality, brightness, price, and product positioning. Higher transparency levels will enable seamless integration with environments, facilitating broader application and adoption of this innovative display technology.

Visionox: 10” Transparent OLED (Transparency: 60%)

AUO: 60” Transparent Micro-LED Display (Transparency: 60%)

• New Applications and Technological Breakthroughs

At the exhibition, notable breakthroughs in new applications and technologies included innovative automotive display designs, QDEL displays produced through printing processes, and high-brightness RGB OLEDos. Samsung Display and TCL CSOT both showcased QDEL-related technologies, employing printing methods to add quantum dots that directly convert light into colored images.

In traditional QLED technology, the light source is blue backlight that passes through quantum dots for color conversion. In contrast, the QDEL displays exhibited by Samsung Display and TCL CSOT apply current directly to the quantum dots to generate light. As a result, QDEL pixels can emit light and switch off independently, offering the same deep blacks and rich contrast as OLEDs.

Looking ahead, as the lifespan of the quantum dot light-emitting layer improves, QDEL is poised to become a competitive choice for consumer displays due to its lower cost and superior image quality.

Samsung: 18.2” QD-LED

BOE: P0.3 Micro LED Transformer Display Cluster <-> Center Information Display (CID)  Co-Driver Display (CDD)

TIMANA: 12.3”InvisiVue Display With Textured, Mini-LED

Visionox: Rollable OLED Surface Display

• Green Low-Carbon Technology Industry Development Trends

It is noteworthy that LG Display has focused on developing new technologies under the theme of a better future. BOE, in particular, has set up a green low-carbon zone at the center of their booth, highlighting green manufacturing, green product technology, and green supply chains.

They continue to lead the display industry with technological innovation and green development, promoting the healthy and sustainable growth of the global display industry.

BOE: Green for Future

China’s top panel makers, including BOE, TCL CSOT, HKC, and CEC-CHOT, are cutting production to support TV panel prices. Speculations indicate a capacity utilization drop below 60% in the first quarter, benefiting Taiwanese panel companies like Innolux and AUO. Despite these efforts, industry sources caution of a panel industry slowdown due to reduced demand, possibly resulting in lower TV panel prices, reported by TechNews.

The memory industry saw a big downturn due to major players like Samsung, SK Hynix, and Micron drastically reducing production. This resulted in a surge in memory prices and a gradual recovery for the entire memory industry. Panel makers may adopt a similar strategy to boost the overall panel industry as well.

Chinese panel companies currently command a global market share of over 70% in TFT-LCD, with the world’s top 3 LCD panel makers from China: BOE, TCL CSOT, and HKC. As China holds the largest share of panel production capacity, a reduction in production by major players could have a more substantial impact on the panel industry compared to the effects on the memory industry caused by Samsung, Micron, and others.

According to TrendForce’s report in November, BOE began adjusting its production levels in the Q3 and will continue to do so in Q4, with an estimated decrease of 7 percentage points in utilization rates. CSOT, on the other hand, maintained high utilization rates in Q3, supported by major customer stockpiling and the ramp-up of the T9 new production line. However, due to reduced procurement of TV panels by both in-house group brands and international frontline brands, CSOT’s utilization rate is expected to decrease by about 17 percentage points to 76% in Q4.

HKC, which still has two production lines not running at full capacity, anticipates a 14 percentage point decrease in its utilization rates for Q4. This is primarily due to the need to reduce production of one of its main products, the 32-inch TV panel, to alleviate inventory pressures and avoid significant price drops.

In response to this, both Innolux and AUO express their intention to dynamically adjust production capacity utilization in line with market conditions. This strategic flexibility is aimed at fostering a more robust and balanced industry order.

Overall, most panel makers are adopting a more conservative approach to production for 1Q24. Furthermore, several panel makers have indicated a two-week Lunar New Year shutdown for 2024. As a result, TrendForce anticipates that overall Gen5+ LCD panel utilization rates may be revised down to 70% or lower in 1Q24 to maintain the market supply-demand balance.

(Image: BOE)

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Source to UDN, in the wake of sluggish demand in the end-user market, the final stretch of September witnessed the tail end of a promotional surge in TV panel inventories as prices for panels below 50 inches seemed to reach a state of stagnation.

According to TrendForce’s view, Eric Chiou, Senior Research Vice President at TrendForce, has sounded the alarm, suggesting that TV panel prices may undergo a downward adjustment starting in November. This reflects a fourth-quarter demand that falls short of expectations, with continued weakness expected in the traditional off-season demand for the first half of next year.

Industry insiders contend that as TV panel pricing faces pressure to halt its upward trend, companies like AUO and Innolux, despite briefly enjoying profits this quarter, are likely to experience a downturn in their fourth-quarter performance, making it challenging to achieve an annual turnaround.

Eric Chiou analyzes that TV panel prices started rising in March this year. This was primarily a response to panel manufacturers’ consensus decision to reduce production after suffering heavy losses. However, due to the impact of a sluggish economy, terminal demand has failed to see significant improvement. Additionally, brand manufacturers, in response to rising panel prices, began planning early for the procurement of year-end panel needs in the second quarter and from July to August. This trend is already reflected in the pricing of TV panels below 50 inches, which has shown signs of stagnation since September.

In response to warnings from research institutions, it is feared that TV panel prices may cease to rise and may even decline in the fourth quarter. Yang Chu-hsiang, General Manager of Innolux, recently stated that the panel market’s prosperity is as unpredictable as a typhoon, and vigilance is required regarding the consumption power of the terminal market. He emphasized that panel manufacturers would not rush to maximize production but would instead make minor adjustments to meet demand steadily. He also reiterated the expectation that the second half of the year would be better than the first, with next year surpassing the current one.

During a recent earnings conference, the Chairman of AUO revealed that TV panel shipments increased by 5 percentage points in the second quarter. Coupled with cost-saving efforts, the operating gross profit turned positive for the quarter, and losses narrowed compared to the first quarter. Looking ahead to the third quarter, Peng remains optimistic, stating that “the worst time for the panel industry has passed.” With back-to-school and year-end sales seasons approaching, he anticipates that the “second half of the year will be better than the first.”

However, as the fourth quarter faces unfavorable global economic conditions, Eric Chiou believes that brand-end inventory for events like China’s Singles’ Day and the U.S. Black Friday promotions is taking a more pessimistic and conservative stance. September marks the tail end of the high-volume inventory period for TV panels, and with Chinese panel manufacturers having a significant share of TV products, they are expected to profit handsomely this season. On the other hand, Taiwanese manufacturers, with a relatively lower share of TV panel shipments, may hover near breakeven or see modest profits in the third quarter. If TV panel prices halt their upward trend in the fourth quarter, achieving the annual goal of returning to profitability may prove elusive.

(Source: https://money.udn.com/money/story/5612/7462519)