TSMC acquires Innolux's 5.5G factory in Tainan
In a regulatory filing, TSMC states that it has signed an agreement to acquire buildings and facilities from Innolux Corporation.
TSMC is acquiring buildings and facilities owned by Innolux in Tainan City. According to the filing, the building space measures about 317,444 square metres and the total transaction price is NTD 17.14 billion.
Market intelligence provider TrendForce reports that Taiwanese panel makers will still operate smaller-generation production lines for IT panels and mid-sized displays. However, as competitors increase their large-generation production, it's becoming harder for these smaller lines to stay competitive. This has led Taiwanese panel makers to explore new strategies for transformation in recent years.
Following the closure of Innolux's 5.5G line at the end of 2023, the company explored transformation opportunities and ultimately sold the facility to TSMC. According to TrendForce TSMC will use the facility to expand its advanced packaging capacity. This deal is mutually beneficial as Innolux is selling an idle factory generating non-operating income from the sale, while TSMC accelerates its capacity expansion and eases constraints by acquiring an existing facility.
