Taiwan Semiconductor Manufacturing Co. is seeking to acquire another Innolux Corp. factory, just months after purchasing the display maker’s facility in August, according to market speculation.
The world’s largest contract chipmaker is targeting Innolux’s Tainan Science Park Factory 7, which sits adjacent to the NT$17.14 billion ($530 million) facility it bought earlier this year. TSMC converted that earlier acquisition into its Advanced Packaging and Testing Factory 8.
Innolux pushed back against the speculation, saying a complete factory sale isn’t currently planned. Sources familiar with the matter indicate the panel maker’s management remains divided over the potential transaction.
The targeted facility, which manufactures TV panels on a 7.5-generation production line, features advanced environmental systems including water recycling and waste reduction measures. These green initiatives could complicate any potential sale negotiations.
TSMC’s interest in additional manufacturing space comes as the semiconductor industry grapples with surging demand from artificial intelligence applications. The chipmaker has been expanding its advanced packaging capabilities to maintain its technology edge in the global semiconductor market.
The earlier Innolux plant purchase marked TSMC’s strategic push to secure more production space in southern Taiwan’s technology corridor.
