TSMC to Acquire More Innolux Plants for Advanced Packaging

In recent developments, sources within the semiconductor equipment industry have revealed that Taiwan Semiconductor Manufacturing Company (TSMC), which acquired Innolux's 5.5-generation LCD panel factory in Tainan Science Park this August, is planning to expand its operations by acquiring additional nearby Innolux facilities. TSMC purchased the original factory for 17.14 billion New Taiwan dollars (approximately $550 million), which has now been designated as Advanced Backend Wafer Plant 8 (AP8). According to supply chain insights, equipment installations at the plant are expected to begin in April next year, with production potentially starting as early as the second half of 2025.

Industry analysts have highlighted that the scale of the Tainan facility is nearly nine times larger than TSMC's advanced packaging plant in Zhunan, and it is currently focused on CoWoS (Chip-on-Wafer-on-Substrate) capacity expansion. Additionally, advanced packaging lines, such as fan-out and 3DIC technologies, may be integrated into future production.

Recent reports indicate that TSMC has already submitted a proposal to acquire additional Innolux facilities surrounding the 5.5-generation LCD panel plant. With the rising demand for AI chips, TSMC's advanced packaging capacity is reportedly experiencing unprecedented expansion.

Industry experts estimate that TSMC's CoWoS production capacity has more than doubled this year, with in-house monthly capacity reaching around 35,000 wafers, potentially doubling to 70,000 wafers next year. Including contributions from its partners, this year's total monthly capacity may approach 50,000 wafers, with a high-end projection of 75,000 wafers for 2025. This capacity growth will include output from the AP8 plant and contributions from key front-end and back-end packaging partners such as ASE Technology and Amkor, enhancing TSMC's overall production capabilities.