Micron Technology Inc has reportedly set its sights on two facilities owned by flat-panel maker AUO Corp (友達) after Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) recently clinched a deal to buy a facility and equipment from Innolux Corp (群創), another major flat-panel maker.
Micron, the world’s third-largest memorychip maker, is expected to purchase two AUO plants in Tainan to expand its advanced chip packaging and testing services and high-bandwidth memory production, local media reports said.
The two plants were shut down in August last year and AUO is seeking to dispose of the facilities, the reports said.
Photo: Grace Hung, Taipei Times
They are expected to cost Micron NT$10 billion to NT$20 billion (US$314.3 million to US$628.6 million), according to market estimates.
AUO declined to comment on the reports, only saying that it has adjusted production at its complex in Tainan and would optimize use of its facilities.
The deal between TSMC and Innolux was announced on Aug. 15, with TSMC agreeing to pay NT$17.14 billion for Innolux’s 5.5th-generation plant in the Southern Taiwan Science Park (南部科學園區) and equipment to help meet its needs for day-to-day operations.
The purchase would help expand TSMC’s advanced 3D chip-on-wafer-on-substrate (CoWoS) packaging capacity for artificial intelligence chips, analysts said.
In addition to CoWoS, TSMC said it is developing fan-out panel level packaging (FOPLP) chip packaging technology, which is more advanced than standard wafer-level packaging.
Analysts said they would not rule out TSMC teaming up with Innolux to develop FOPLP technology, citing industrial sources as saying that the two companies’ research and development teams have met.
Innolux said it expects to make a profit of about NT$14.7 billion from the sale to TSMC.
Analysts estimated that the transaction would boost Innolux’s earnings per share by NT$1.62 this year.
Separately, Innolux has reduced its paid-in capital by NT$10.8 billion, or 12 percent, by canceling about 1.089 billion shares and giving NT$1.2 in cash per share to shareholders.
Semiconductor shares in China surged yesterday after Reuters reported the US had ordered chipmaking giant Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) to halt shipments of advanced chips to Chinese customers, which investors believe could accelerate Beijing’s self-reliance efforts. TSMC yesterday started to suspend shipments of certain sophisticated chips to some Chinese clients after receiving a letter from the US Department of Commerce imposing export restrictions on those products, Reuters reported on Sunday, citing an unnamed source. The US imposed export restrictions on TSMC’s 7-nanometer or more advanced designs, Reuters reported. Investors figured that would encourage authorities to support China’s industry and bought shares
TECH WAR CONTINUES: The suspension of TSMC AI chips and GPUs would be a heavy blow to China’s chip designers and would affect its competitive edge Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s biggest contract chipmaker, is reportedly to halt supply of artificial intelligence (AI) chips and graphics processing units (GPUs) made on 7-nanometer or more advanced process technologies from next week in order to comply with US Department of Commerce rules. TSMC has sent e-mails to its Chinese AI customers, informing them about the suspension starting on Monday, Chinese online news outlet Ijiwei.com (愛集微) reported yesterday. The US Department of Commerce has not formally unveiled further semiconductor measures against China yet. “TSMC does not comment on market rumors. TSMC is a law-abiding company and we are
FLEXIBLE: Taiwan can develop its own ground station equipment, and has highly competitive manufacturers and suppliers with diversified production, the MOEA said The Ministry of Economic Affairs (MOEA) yesterday disputed reports that suppliers to US-based Space Exploration Technologies Corp (SpaceX) had been asked to move production out of Taiwan. Reuters had reported on Tuesday last week that Elon Musk-owned SpaceX had asked their manufacturers to produce outside of Taiwan given geopolitical risks and that at least one Taiwanese supplier had been pushed to relocate production to Vietnam. SpaceX’s requests place a renewed focus on the contentious relationship Musk has had with Taiwan, especially after he said last year that Taiwan is an “integral part” of China, sparking sharp criticism from Taiwanese authorities. The ministry said
US President Joe Biden’s administration is racing to complete CHIPS and Science Act agreements with companies such as Intel Corp and Samsung Electronics Co, aiming to shore up one of its signature initiatives before US president-elect Donald Trump enters the White House. The US Department of Commerce has allocated more than 90 percent of the US$39 billion in grants under the act, a landmark law enacted in 2022 designed to rebuild the domestic chip industry. However, the agency has only announced one binding agreement so far. The next two months would prove critical for more than 20 companies still in the process
RSS