TSMC Reportedly Negotiates NT$30B Acquisition of AUO Panel Factories for Advanced Packaging
TSMC is reportedly in negotiations to acquire two panel factories (L7 and L5C) from AU Optronics (AUO) in Taiwan for over NT$30 billion. The acquisition aims to expand TSMC's advanced packaging capacity and develop panel-level packaging technologies. This acquisition addresses the critical bottleneck in AI chip supply chains by rapidly scaling up advanced packaging capacity. By repurposing existing panel factories, TSMC can bypass long construction times and leverage AUO's glass substrate expertise to accelerate FOPLP and CoPoS technologies. The deal will follow the "Innolux model," where older panel factories are retrofitted with cleanrooms and power infrastructure suitable for semiconductor packaging. The collaboration will focus on Fan-Out Panel-Level Packaging (FOPLP) and Chip-on-Panel-on-Substrate (CoPoS) architectures.
## BACKGROUND
Traditional advanced packaging, like TSMC's CoWoS, relies on circular silicon wafers. Technologies like FOPLP and CoPoS transition this process to large rectangular panels, which significantly increases manufacturing efficiency, reduces costs, and allows for larger package sizes suitable for high-performance AI hardware.