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Highlights of the day: Innolux seeking to introduce foundry business model to panel industry

DIGITIMES staff

The LCD industry getting so mature that existing players are keen to look for new opportunities and technologies. Innolux's executive VP Chin-Lung Ting has told Digitimes that the company will adhere to TFT-LCD as its core technology, but is exploring a new business model that he calls "panel semiconductor," seeking to integrate a wide range of sectors to cater to non-display applications. In the semiconductor sector, foundry house UMC is set to expand its 12-inch manufacturing capacity to meet strong demand for 28nm process. And both UMC and TSMC are expected to fully utilize their 28nm node capacity through third-quarter 2021.

Innolux proposes concept of panel semiconductor: South Korean panel makers are withdrawing from the LCD market, while their Chinese competitors, after frenzy expansion propelled them to the top of the LCD sector, are not expected to further expand their capacity significantly in the future, as they no longer have priority in receiving government resources.

UMC on track to expand 12-inch foundry capacity: United Microelectronics (UMC) is on track to expand its foundry capacity for 12-inch wafer fabrication services in response to staggering demand for 28nm products, according to industry sources.

TSMC, UMC to see full capacity utilization for 28nm node through 3Q21: Both TSMC and UMC are expected to sustain full capacity utilization for 28nm manufacturing process at their 8-inch and 12-inch fabs throughout third-quarter 2021, with gross margins from the mature node hitting new highs and clients' race for their capacity support expected to last through the end of the year, according to industry sources.