Innolux Reportedly Partners With TSMC on FOPLP Packaging to Target AI Market

Demand for artificial-intelligence chips and high-performance computing is increasing pressure on advanced packaging systems to provide better heat management, denser interconnections and faster signal transmission. Innolux is seeking to apply its expertise in glass processing and precision manufacturing to through-glass-via, or TGV, substrates and silicon photonics, giving the Taiwanese panel maker a potential route into the next generation of AI chip supply chains.

Innolux reported a significant improvement in second-quarter profitability, with earnings per share rising nearly twofold from the previous quarter. The company has also established a new semiconductor subsidiary, 群超半導體, to accelerate development and commercialization of TGV glass substrates and related technologies. Innolux is targeting an advanced-packaging glass substrate market that it expects could reach $8 billion by 2030, driven by AI and high-performance computing applications.

Rapid growth in demand for artificial intelligence and high-performance computing chips has made advanced packaging critical to boosting computing performance, integrating multiple dies and expanding capacity. TSMC’s investment in panel-level packaging, or PLP, is intended to increase the packaging area processed in each production cycle and improve efficiency. It also puts the company in a race with early mover Samsung Electronics for leadership in next-generation packaging technology.

A recent report by South Korean media said TSMC was accelerating efforts to establish a PLP mass-production system and planned to build a pilot line in 2026, laying the groundwork for commercialization and expanded production capacity. As Samsung Electronics continues advancing its existing PLP initiatives, the two companies are set to compete directly on process yields, mass-production timelines and orders from AI chip customers.