Panel maker Innolux is looking to venture into the IC packaging segment by converting its 3.5G LCD panel fab into an advanced packaging plant dedicated to FOPLP (fan-out panel level package) process, according to industry sources.

Innolux is scheduled to complete its first-stage technology development and product validations by the end of 2021 and start small-volume trial production for potential clients in late 2022, the sources said.

The panel maker started its research on PLP process two years ago and has found that it is technologically capable of meeting the precision requirement for such process, the sources continued.

Innolux can convert its fully-depreciated 3.5G LCD panel fab facilities for FOPLP operations and just has to purchase some extra equipment for the new backend process, enabling the company to save huge equipment expenses, the sources stressed.

The glass panels rolled out by 3.5G LCD fab are larger in area than those used at new PLP plants being built by dedicated backend houses, but such an advantage is accompanied by higher technology threshold Innolux has to surmount, the sources said, adding that it will also take time for the company to enrich its domain knowledge for IC packaging.

The sources said both FOPLP and FOWLP (wafer level package) can go without substrates used in traditional high-density packaging, thus addressing the issues of high cost, performance limitation, thickness and heat dissipation involved in substrates.

By DIGITIMES