TSMC Purchased Innolux's Factory for NT $3.788 billion to Expand CoWos Packaging Capacity

Recently TSMC announced that it had signed a contract with Innolux to purchase its Nanke plant and ancillary facilities in the new urban area of Tainan City for NT$17.14 billion (approximately RMB 3.788 billion), with a construction area of 317,444.93 square meters. 

At the end of 2023, Innolux closed its 5.5-generation LCD panel plant to cope with the overcapacity in the LCD panel industry, while revitalizing assets, enriching operating funds, and promoting corporate transformation. Previously, Innolux was constantly converging old production lines, with one 3.5-generation plant and one 4-generation plant investing in panel-level packaging and X-ray sensors respectively. 

Innolux Chairman Hong Jinyang once pointed out that the company's adjustment of production capacity not only depends on the business cycle, but also examines the product portfolio. Some consumer products are already mature, but component suppliers are competing on cost competitiveness. To maintain long-term competitiveness, factories must always evaluate whether they need to transform.