Innolux Corp. announced a successful profit turnaround in the second quarter of 2024 during an online press conference, where the management outlined plans for diversification beyond display technologies. The company aims to expand into semiconductor fan-out panel-level packaging (FOPLP) as part of its dual-track transformation strategy.
CEO Jin Yang Hung highlighted plans to collaborate with partners on developing Through Glass Via (TGV) technology, a crucial component of FOPLP. He estimated a 2-3 year timeline before mass production begins. This move reflects Innolux’s commitment to diversifying its business and reducing dependency on traditional display products.
Despite geopolitical uncertainties and ambiguous U.S. interest rate policies, Innolux expects a 5% drop in TV panel utilization rates in Q3 to maintain stable profit margins. Chairman and CEO Hong Jinyang attributed the Q2 profit turnaround to improved market conditions and enhanced internal efficiencies, which boosted the gross profit margin to 10%. The company’s non-display sector now contributes 22% of total revenue.
Innolux is leveraging the growing interest in artificial intelligence to propel its semiconductor packaging business. Collaborations with integrated circuit (IC) partners are underway to develop high-voltage, high-efficiency chip packaging technologies for new applications, including charging stations, 5G communications, and high-speed computing. By diversifying its business model, Innolux aims to mitigate the impacts of business cycles and enhance shareholder value.
