Due to low production efficiency and intense price competition, major panel makers like AUO, Innolux, and LG Display are selling older LCD factories. Semiconductor companies such as TSMC, Micron, ASE, and SK Hynix have shown strong interest in acquiring these high-spec cleanroom facilities to accelerate expansion amid rising AI demand.
Innolux plans to fully clear personnel and equipment from its Plant 5 by June 2026 and Plant 2 by September. Market rumors suggest Micron aims to acquire Innolux Plant 5 following its takeover of Powerchip's Tongluo fab, rapidly expanding its memory footprint through acquisitions and conversions.
However, other reports claim the buyer of Innolux Plant 5 is not Micron but a semiconductor packaging and testing giant, pending board approval before details are announced. According to DIGITIMES sources, this company is likely ASE, though negotiations remain ongoing.
ASE confirmed interest in acquiring the plant through its spokesperson.
Innolux stated it evaluates asset allocation and operational sites based on long-term strategy, industry trends, and shareholder interests, pledging timely disclosure if material developments occur, urging reliance on official public announcements.
Besides Innolux Plant 5, Radiant Opto-Electronics is reportedly assessing purchasing fabs from AUO or Epistar, aiming to expand new business lines. Radiant has recently entered the advanced optics and meta-lens fields via acquisitions.
Powertech recently invested nearly NT$6.9 billion to buy a fab in Hsinchu Science Park from AUO, primarily to boost fan-out panel level packaging (FOPLP) capacity. This move addresses growing demand from AI, HPC, and automotive electronics sectors and forms a key part of Powertech's mid-to-long-term AI packaging strategy.
Beyond the two Taiwanese panel leaders, HannStar recently leased idle fabs in Southern Taiwan Science Park to Wiwynn, which needs additional capacity to meet orders from US cloud service providers, accelerating its expansion pace.
Meanwhile, HannsTouch ceased AMOLED touch sensor production at its Southern Taiwan Science Park facility on January 31, 2026, exiting the touch manufacturing business amid fierce market competition and order adjustments. The cleanroom-grade fab will be repurposed or monetized through sale or lease, with TSMC and Micron reportedly among interested parties.
LG Display, having exited the LCD sector, is rumored to sell its P7 fab to SK Hynix. Although SK Hynix must consider the distance of the Paju-based fab, industry observers view such a purchase positively for LGD. Since halting display panel production, LGD currently rents the P7 fab to subsidiaries.
In response, an SK Hynix representative told DIGITIMES that the company has not moved forward with any related discussions on this matter.
Article edited by Jack Wu
