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TSMC Purchased Innolux's Factory for NT $3.788 billion to Expand CoWos Packaging Capacity
Published: 8.20.2024
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.
The main purpose of TSMC's acquisition of Innolux's Tainan plant is to expand its CoWoS (Chip on Wafer on Substrate) advanced packaging capacity. This is now part of TSMC's continued expansion of its advanced packaging capacity, and it is expected to continue to expand capacity by 2025 and hopes to cooperate with Innolux to expand its layout in advanced packaging.
It is reported that in terms of advanced packaging layout, TSMC is studying a new advanced chip packaging method that uses rectangular substrates instead of traditional circular wafers to improve chip packaging efficiency and reduce costs. In addition, TSMC also plans to combine 3D SoIC with 2.5D CoWoS/InFO technology as part of a very complex heterogeneous system design to achieve a richer combination of topological structures.
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