TSMC is rumored to be weighing a deal worth more than NT$30 billion to acquire two older-generation AUO display plants near its own facilities in the Central Taiwan Science Park, according to a Commercial Times report cited by ChainCatcher. The two sites, AUO’s L7 and L5C plants, would provide room for large-format packaging programs including CoPoS and FOPLP.
People familiar with the matter said TSMC has already sent staff to complete on-site due diligence. AUO is said to be prioritizing the disposal of the two sites, with a plan to submit the matter to its board in October and an estimate that production-line relocation and plant clearance could be completed by the end of the first quarter next year. Neither TSMC nor AUO has confirmed the reported transaction.
Central Taiwan buildout spans process, packaging and silicon photonics
Semiconductor industry sources cited in the report said TSMC is building out the Central Taiwan Science Park from A14 leading-edge process technology and advanced packaging to its COUPE silicon photonics platform, alongside Taichung’s role as a center for precision optical components, with the aim of forming a CPO ecosystem there.
TSMC’s existing Fab 15A in central Taiwan mainly runs 28 nm production and can support silicon interposer manufacturing. Phase 2 of Fab 25 is planned with four A14 wafer fabs, and the first two have already entered the steel-structure construction stage. The first fab is targeting completion before April 2027. The existing AP5 advanced packaging and testing facility in the park has already been put into CoWoS production, and the company is expected to integrate electronic and photonic chips through the COUPE platform.
Optics suppliers are also expanding in Taichung
On the optics side, Largan has recently acquired land and factory properties in Taichung’s Nantun district, the Taichung Industrial Park and an area near the precision machinery cluster. The three transactions totaled about NT$2.568 billion, which the market has interpreted as preparation for CPO volume production.
The company has already secured its first mass-production order for fiber arrays. Its first automated pilot line is targeting completion by the end of the third quarter, with volume production possible as early as mid-2027. It is also laying out micro-lens arrays and integrated FAU products.