On December 20, 2024, Innolux Corporation Chairman Mr. Hong Jin-Yang stated that, currently, 85% of capital expenditures are focused on panel-related products, with 15% allocated to semiconductor applications. However, Innolux aims to gradually increase its focus on semiconductor applications, targeting a 50-50 split in the future.
Fan-Out Wafer-Level Packaging Technology Expansion
During a media event, Mr. Hong noted that the panel-level fan-out wafer-level packaging (FOWLP) technology line, which was supposed to start shipping by the end of this year, has been delayed due to less optimistic demand from mobile phone applications. The company will aim for shipments next year and explore other uses to fill capacity. However, he remains confident in the potential of fan-out packaging technology for semiconductor applications. Further expansion of production lines will depend on customer confirmation before additional facilities can be built.
Strategic Direction for the Semiconductor Industry
Mr. Hong emphasized that the introduction of fan-out packaging technology, which utilizes the transformation of a 3.5-generation panel production line, is the most appropriate approach at present. The goal is to assist the packaging industry—not to replace CoWoS technology—but to help the industry meet various levels of chip packaging requirements. In the future, the products may even be used as silicon photonics substrates.
He also stressed that although the company sold a plant to TSMC, the sale’s profit was not part of a regular business plan.
Innolux’s Patent Portfolio and Market Applications
Innolux’s General Manager Mr. Yang Chu-Xiang explained that TSMC holds the largest number of global patents, while Innolux ranks second, with a total of 282 patents, expected to exceed 300 patents by the end of this year. The company’s fan-out packaging technology can be applied in the automotive and low-earth orbit satellite markets.
The Road Ahead for Micro LED in Automotive Applications
Mr. Yang described fan-out packaging as having a square substrate, unlike the conventional round semiconductor wafers. Each design has its advantages and disadvantages. The mass production of fan-out packaging products will depend on the attitude of leading semiconductor companies. Once these companies make decisions, market demand will significantly expand.
In light of recent cyclical fluctuations in the panel industry, Mr. Yang believes that the current environment resembles “thick snow covering withered lotus, but the lotus root will bloom in the spring, and with the flowers, seeds will grow, bringing prosperity in the coming year.” He is optimistic about the new year.
30 Years of Panel Industry Experience
Having worked in the panel industry for 30 years, Mr. Yang has witnessed the evolution from CRTs, LCDs, and PDPs to OLEDs and Micro LEDs, while also expanding into panel-level fan-out wafer-level packaging.
Transformation and Growth in Global Markets
Chairman Hong mentioned that after taking over as chairman in 2018, the first six years focused on stabilizing operations and pursuing profitability, including organizational changes and streamlining. The first stage involved some organizational spin-offs, such as the creation of RuiSheng Optoelectronics for the production of X-ray sensors, and expanding business beyond the domestic market.
He noted that the second stage of growth will focus on transformation, expanding the company’s core competitive edge, particularly in the precision processing of large-area glass. This includes spinning off the fan-out wafer-level packaging business. The automotive division was also spun off to directly engage with end-brand customers. However, this has led to the challenge of system integrators (SIs) cutting orders. To address this, Mr. Hong visited several major European automotive manufacturers, covering 1,527 kilometers in Germany, to ensure customers understand that Innolux’s solutions are the best and to win them back.
Future Outlook for Micro LED in Transparent Displays
Innolux currently holds 580 patents related to Micro LED technology and collaborates with automotive electronics and consumer electronics manufacturers. Automotive applications for Micro LED still require validation but are initially being produced on the 3.5-generation low-temperature polysilicon (LTPS) production lines, with plans for production on 6th-generation lines in the future.
Mr. Hong expressed optimism about Micro LED in transparent displays and the automotive market. Although China accounts for nearly half of the global market share of electric vehicles, most of Innolux’s electric vehicle customers are based in Europe and North America, though the company will also explore the Chinese market.
Additionally, Mr. Hong remains confident in the long-term potential of the silicon photonics industry, and currently, Innolux is investing in a silicon photonics company to gain exposure to this promising field.
Disclaimer: The views and opinions expressed in this article are those of the original authors and do not necessarily reflect the official policy or position of MiniMicroLED Insights . While we strive to ensure the accuracy and reliability of the information provided, the content on this website may include translations, re-edited versions of second-hand information, or information derived from unverifiable sources. MiniMicroLED Insights makes no representations or warranties, express or implied, regarding the completeness, accuracy, or timeliness of such content. The information in this article is for informational purposes only and should not be construed as professional advice. Any reliance you place on such information is strictly at your own risk. To the fullest extent permitted by law, MiniMicroLED Insights disclaims all liability for any direct, indirect, incidental, consequential, or punitive damages arising out of your use of, or reliance on, the information contained in this article.
Copyright Notice: This article may include translated and re-edited content derived from various online sources, including websites and social media platforms. While we strive to credit the original authors and sources to the best of our ability, we may not always be able to verify the original source of the content. All rights to the original content remain with the original author or source publication. Where applicable, this content is reproduced for educational and informational purposes under the fair use doctrine. If you believe any content on this site infringes upon your intellectual property rights, or if you are the copyright owner and believe we have not credited you correctly, please contact us at minimicroled.business@gmail.com. We will investigate and take corrective action, including removing or properly crediting the content if necessary.
Content sourced and adapted by MiniMicroLED Insights (Doris).
