Innolux Corp (群創) yesterday said it is shutting down a plant in Tainan, as the flat-panel display maker shifts its focus to non-display business and seeks to rejuvenate low-utilized assets.
“The company is adjusting its capacity structure to match market dynamics,” Innolux said in a statement. “The arrangement aims to cope with market changes and expansions in non-display business, as the company continues to allocate resources to segments with long-term growth potential.”
Innolux plans to move the Tainan plant’s manufacturing equipment used to produce displays for notebook computers, monitors and medical devices to other plants in Taiwan. The company dismissed media report that it planned to complete the integration by the middle of next year.
Photo: CNA
Innolux did not disclose further details about whether it is in talks with potential buyers to take over the facility, a 5-generation flat panel display plant.
The company last year sold an idled 5.5-generation plant, also in Tainan, to Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) for NT$17.14 billion. TSMC is planning to convert the plant into an advanced chip-on-wafer-on-substrate (CoWoS) packaging facility.
Innolux is aggressively diversifying its business coverage to new areas beyond the boom-and-bust display market. Non-display business makes up about 30 percent of its revenue, the company said.
The company is tapping into chip fan-out panel-level packaging market by converting a less-advanced 3.5-generation plant in Tainan into a chip packaging facility for power management chips and radio frequency chips, with production projected to ramp up in the second half of this year following several delays.
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