TSMC Acquires Innolux Nanke Facility for NT$17.14B

On August 15, TSMC announced a significant investment of NT$17.14 billion (approximately RMB 3.788 billion) to acquire a facility from Innolux. This strategic move includes the purchase of Innolux's Nanke plant and its associated assets, aimed at enhancing TSMC's operational and production capabilities to meet the rising demand for advanced packaging technologies.

The acquisition involves the facility located at No. 3, Huanshi Road, Section 1, Xinshi District, Tainan City. The plant spans an area of 317,444.93 square meters (about 96,027.09 ping). Previously used for the production of laptop and monitor panels, the plant was closed last year as part of Innolux's strategic shift. Following the approval of the sale by Innolux's board in late July, TSMC emerged as the successful buyer.

Industry analysts are optimistic about TSMC's acquisition, noting that the plant will primarily be used to expand the company's advanced packaging capacity, including CoWoS technology. Due to the high demand for these advanced solutions, TSMC has already placed orders with several equipment suppliers. The facility is expected to commence production by the end of this year or early next year, with operations potentially ramping up faster than TSMC's Chaiyi facility. This expansion is set to bolster TSMC's capabilities and support the growing needs of the semiconductor industry.