Micron Technology Inc has reportedly set its sights on two facilities owned by flat-panel maker AUO Corp (友達) after Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) recently clinched a deal to buy a facility and equipment from Innolux Corp (群創), another major flat-panel maker.
Micron, the world’s third-largest memorychip maker, is expected to purchase two AUO plants in Tainan to expand its advanced chip packaging and testing services and high-bandwidth memory production, local media reports said.
The two plants were shut down in August last year and AUO is seeking to dispose of the facilities, the reports said.
Photo: Grace Hung, Taipei Times
They are expected to cost Micron NT$10 billion to NT$20 billion (US$314.3 million to US$628.6 million), according to market estimates.
AUO declined to comment on the reports, only saying that it has adjusted production at its complex in Tainan and would optimize use of its facilities.
The deal between TSMC and Innolux was announced on Aug. 15, with TSMC agreeing to pay NT$17.14 billion for Innolux’s 5.5th-generation plant in the Southern Taiwan Science Park (南部科學園區) and equipment to help meet its needs for day-to-day operations.
The purchase would help expand TSMC’s advanced 3D chip-on-wafer-on-substrate (CoWoS) packaging capacity for artificial intelligence chips, analysts said.
In addition to CoWoS, TSMC said it is developing fan-out panel level packaging (FOPLP) chip packaging technology, which is more advanced than standard wafer-level packaging.
Analysts said they would not rule out TSMC teaming up with Innolux to develop FOPLP technology, citing industrial sources as saying that the two companies’ research and development teams have met.
Innolux said it expects to make a profit of about NT$14.7 billion from the sale to TSMC.
Analysts estimated that the transaction would boost Innolux’s earnings per share by NT$1.62 this year.
Separately, Innolux has reduced its paid-in capital by NT$10.8 billion, or 12 percent, by canceling about 1.089 billion shares and giving NT$1.2 in cash per share to shareholders.
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