Innolux is making strides toward transforming its business by entering the semiconductor packaging sector, with a focus on fan-out panel-level packaging (FOPLP). During its online meeting on September 27, the company acknowledged that while its 3.5-generation factory is capable of producing only 1,000 wafers, even at full capacity, the contribution to revenue would be minimal. However, Innolux sees long-term potential in this technology and plans to expand production based on market conditions and customer demand.
The company, traditionally a leader in large-size glass panel manufacturing, aims to position itself as a “glass-related solution provider,” leveraging its two decades of experience to collaborate with the semiconductor industry. Innolux’s goal is to diversify its revenue sources, with a short-term target of making non-display businesses account for one-third of its income, eventually aiming for a 50/50 split between display and non-display sectors.
In the panel market, Innolux noted that on-demand production strategies adopted by peers are expected to maintain market stability. With no new production capacity in the pipeline for the next two years, the company believes the withdrawal of older production lines will support healthier market dynamics.
As for its FOPLP ambitions, Innolux hopes to ramp up mass production in the second half of the year, though revenue contributions will initially remain modest.
