Innolux Addresses Concerns Over Panel Packaging Capabilities
18 April 2025 · Uncategorized ·
In response to a report by Nikkei Asia published on November 15th, which inaccurately suggested that Innolux lacks technical capabilities in advanced packaging technology, the company has issued six points of clarification.
Nikkei Asia reported that TSMC’s latest ‘panel-level’ (面板級) advanced packaging technology utilizes square substrates to accommodate more packaged units than circular wafers, thereby enhancing computing performance. The report cited insiders indicating a trial production line is being built in Taoyuan with the goal of initiating small-scale production around 2027.
However, subsequent mentions of Innolux within the article may lead to misunderstandings among clients and investors regarding precision requirements for advanced packaging. To address this potential misinterpretation:
1) Regarding comments on other semiconductor companies included in the report, Innolux declines to comment as it is unaware of the information source and therefore cannot confirm its authenticity or accuracy.
2) The statement that ‘the display industry’s precision standards and required skill sets were insufficient for advanced chip packaging processes’ (顯示器產業的精度標準與技能層級無法滿足先進晶片封裝需求), presented with Innolux mentioned at the beginning of the paragraph, may create misleading implications and negatively impact company reputation.
3) Since entering Fan-Out Panel Level Packaging (FOPLP), Innolux has consistently developed three core process technologies: chip first, RDL first, and TGV. Currently, both processes are progressing steadily according to plan without any negative feedback from customers regarding precision standards or technical capabilities; the development of TGV remains in its early stages.
4) In practice, display technology shares significant overlap with advanced packaging manufacturing techniques. Industry consensus suggests that approximately 60% of front-end procedures for displays and ICs are similar, indicating a natural potential for the display sector to enter into packaging fields. The report lacked clarity by intermixing key terms such as ‘display industry,’ “insufficient precision and skill thresholds,” and “advanced package requirements” without clear definitions.
5) Regarding substrate size, Innolux’s G3.5 facility can produce substrates measuring 620×750 mm—currently the largest available for advanced packaging applications. Adjustments to processes are feasible to accommodate smaller sizes like 310×310mm or 510×515mm as requested by customers, without technical challenges; however, increasing substrate dimensions requires higher technological thresholds and equipment support.
6) Smaller substrates offer advantages in yield control while larger ones provide significant benefits such as increased single production capacity and reduced costs. As chip sizes increase, the economic advantage of enlarging packaging bases also grows.
Nikkei Asia reported that TSMC’s latest ‘panel-level’ (面板級) advanced packaging technology utilizes square substrates to accommodate more packaged units than circular wafers, thereby enhancing computing performance. The report cited insiders indicating a trial production line is being built in Taoyuan with the goal of initiating small-scale production around 2027.
However, subsequent mentions of Innolux within the article may lead to misunderstandings among clients and investors regarding precision requirements for advanced packaging. To address this potential misinterpretation:
1) Regarding comments on other semiconductor companies included in the report, Innolux declines to comment as it is unaware of the information source and therefore cannot confirm its authenticity or accuracy.
2) The statement that ‘the display industry’s precision standards and required skill sets were insufficient for advanced chip packaging processes’ (顯示器產業的精度標準與技能層級無法滿足先進晶片封裝需求), presented with Innolux mentioned at the beginning of the paragraph, may create misleading implications and negatively impact company reputation.
3) Since entering Fan-Out Panel Level Packaging (FOPLP), Innolux has consistently developed three core process technologies: chip first, RDL first, and TGV. Currently, both processes are progressing steadily according to plan without any negative feedback from customers regarding precision standards or technical capabilities; the development of TGV remains in its early stages.
4) In practice, display technology shares significant overlap with advanced packaging manufacturing techniques. Industry consensus suggests that approximately 60% of front-end procedures for displays and ICs are similar, indicating a natural potential for the display sector to enter into packaging fields. The report lacked clarity by intermixing key terms such as ‘display industry,’ “insufficient precision and skill thresholds,” and “advanced package requirements” without clear definitions.
5) Regarding substrate size, Innolux’s G3.5 facility can produce substrates measuring 620×750 mm—currently the largest available for advanced packaging applications. Adjustments to processes are feasible to accommodate smaller sizes like 310×310mm or 510×515mm as requested by customers, without technical challenges; however, increasing substrate dimensions requires higher technological thresholds and equipment support.
6) Smaller substrates offer advantages in yield control while larger ones provide significant benefits such as increased single production capacity and reduced costs. As chip sizes increase, the economic advantage of enlarging packaging bases also grows.