Innolux cooperates with TSMC’s Longtan plant! FOPLP continues to gain momentum, and the stock price is locked at the daily limit up

The advanced packaging theme continues to heat up. Innolux (3481), whose fan-out panel packaging (FOPLP) technology was previously tapped into the SpaceX supply chain, is now rumored to be teaming up with TSMC (2330) to jointly develop AI chip packaging at the Longtan plant. Chairman Hong Jin-yang said outright that “the technology is already standing at the top-leading position,” driving the stock price to hit the limit-up board within less than half an hour of the 11th-day open.

（TSMC Longtan plant revived? An em-level process enters Longke Phase 3; Hantian and Phison will take on $280k orders）

Innolux boosts FOPLP again, rumored to cooperate with TSMC’s Longtan plant

With demand for AI and high-performance computing (HPC) continuing to rise, the advanced packaging market remains hot. Economic Daily News noted that Innolux (3481) has spent years developing its fan-out panel packaging (FOPLP) technology. After it successfully entered the SpaceX supply chain by the end of 2025, further reports now suggest that TSMC (2330) will also team up with Innolux at the Longtan plant to jointly develop advanced packaging applications for AI and HPC chips.

In response, although Innolux said it would not comment on market rumors, Chairman Hong Jin-yang, in the latest annual report’s “Letter to Shareholders,” emphasized that the company’s semiconductor advanced packaging technology “has already reached the first-leading position,” and revealed that it is currently working with leading global customers on co-developing glass drilling (TGV) technology.

Innolux’s stock jumps to the limit-up at the open! FOPLP concept stocks all surge

As the news spreads, Innolux’s stock on the 11th opened higher and locked limit-up within less than half an hour to reach 32.3 yuan, with trading volume exceeding 2.8 hundred thousand shares. The rally also spread to FOPLP-related concept stocks: AU Optronics (2409) and Coretronic (6116) followed with strength of 5%, while equipment maker G-Tronics (2467) surged more than 8%, showing that packaging supply-chain vendors were benefiting at the same time.

Earlier reports noted that amid tight CoWoS advanced packaging capacity at TSMC, FOPLP is viewed as the next-generation packaging solution. Leveraging scale advantages from large-panel manufacturing, it can effectively improve packaging efficiency, reduce production costs, and is especially suited to packaging demands for AI and HPC chips—prompting market attention to Taiwan’s panel and packaging industries.

（CoWoS wafer average pricing breaks $10,000; advanced packaging becomes TSMC’s new profit engine）

Mass production scale ramps up tenfold; aiming to seize the AI business with advanced packaging technology

Chairman Hong Jin-yang previously revealed in an interview that the monthly production volume of Innolux’s FOPLP chip-first process has increased more than tenfold versus the past, breaking through the scale of 40 million units, with excellent yield and full capacity utilization, reaching economic scale. He also expected that the performance of the advanced packaging business in the second half of the year will be better than the first half.

On the technical roadmap, Innolux is also actively expanding RDL interposer (re-distribution layer interposer) technology to target packaging demand for large AI chips, and has already conducted technology verification with major packaging customers. Its unique embedded packaging technology has also attracted international microwave chip makers to invest in verification. In the future, application areas are expected to range from automotive radar to gesture-control chips.

In addition, as glass substrates are a key emerging direction for advanced packaging, Innolux is leveraging years of experience in glass process technology to secure an early position in the TGV field, strengthening long-term competitive advantages.

Looking at Innolux’s diversified layout, high-value-added products to counter gross-margin pressure

Reviewing Innolux’s shareholder meeting annual report, Innolux is not only investing in a single advanced packaging theme, but also disclosed technology planning spanning 13 areas, including in-vehicle displays, MicroLED, glasses-free 3D, aerospace applications, oxide advanced processes, and 8K professional displays. It is shifting toward high-value-added products, trying to break through the long-standing gross-margin pressure faced by the panel industry through a differentiated technology route.

As AI chip sizes and power-consumption requirements continue to rise, the market is re-evaluating the strategic role of panel makers in the semiconductor supply chain. Whether Innolux can hold its ground through this will become an important focus for future market observation.

This article Innolux rumored to work with TSMC’s Longtan plant! FOPLP heats up again; stock price locks limit-up. First appeared on Lianxin ABMedia.