TAIPEI (Taiwan News) — Innolux has developed Fan-Out Panel Level Packaging technology for next-generation chips, transforming the panel maker into a supplier in the advanced semiconductor packaging supply chain, CNA reported.
The packaging technology changes chip substrates from traditional round wafers to square panels. Square panels can hold more chip connections, use less power, transfer data faster, and reduce production costs.
Company Chair Jim Hung (洪進揚) said Innolux has applied its panel production expertise to chip packaging. Its monthly shipments for chip packaging square panels have grown from four million last year to over 40 million units.
The company has received square panel orders from SpaceX. Hung said the company’s production lines for the product are at full capacity, with orders booked through the first half of next year.
Hung noted the company is developing Redistribution Layers and Through Glass Vias technologies for packaging to increase chip connection density and enable 3D stacking.
Redistribution Layers create one or more layers of metal wiring on a chip surface, expanding the chip’s connection points to link with external circuits. Through Glass Vias uses lasers to drill holes in the glass substrate and fills them with metal, allowing vertical electrical connections that improve signal speed and cut power consumption.
The segment of square panels for semiconductor packaging accounts for less than 10% of Innolux's revenue. Hung said the company aims to complete testing of its Redistribution Layers and Through Glass Vias technologies this year.
Hung remains optimistic about TV panel demand, noting that Innolux offers products in a wide range of sizes compared to competitors.
Rising memory costs account for about 20% of the company’s production costs for laptop, PC, and smartphone panels. Hung said the company will keep panel prices unchanged, considering the potential impact on sales. It does not plan to expand production for mobile device panels.
Innolux posted NT$226.7 billion (US$7.2 billion) in revenue last year, up 4.7% from 2024. On Thursday, its shares closed at NT$32,95, up 8.75%, with a trading volume of nearly 1.69 million shares.
