3.204 billion, Innolux sells Nanke Factory 5

Panel manufacturer Innolux announced that it will dispose of Nanke's Fab5 factory and ancillary facilities and sell them to ASE Semiconductor, a subsidiary of packaging and testing giant ASE Investment Holdings, for NT$14.85 billion (approximately RMB 3.204 billion). The estimated proceeds from the disposal are approximately NT$13.3 billion (approximately RMB 2.869 billion).

In order to speed up the handover of the purchase and sale target, Innolux stated that the two parties will separately sign an advance factory use compensation agreement, in which the company will accelerate the disassembly, relocation and clearing of process equipment and specific factory equipment, and ASE Semiconductor will compensate for the removal costs, which are estimated to be approximately 982 million yuan (approximately RMB 212 million).

So far in the first half of this year, Innolux has announced the sale of three factories, with a total recognized disposal benefit of more than NT$20 billion:

Nanke module factory was sold to packaging and testing factory Nanmao, with a total transaction amount of NT$880 million (approximately RMB 190 million), and recognized disposal benefits of approximately NT$659 million (approximately RMB 142 million);

Nanke Plant 2 was sold to ASE Silicon Products, a subsidiary of ASE Investment Holdings. The total transaction amount was approximately NT$6.325 billion (approximately RMB 1.365 billion), and the disposal proceeds were approximately NT$5.8 billion;

Nanke Factory 5 was sold to ASE Semiconductor, a subsidiary of ASE Investment Holdings, for NT$14.85 billion (approximately RMB 3.204 billion). Innolux announced that the proceeds from the disposal amounted to NT$13.3 billion (approximately RMB 2.869 billion).

In addition to the three factories that have been announced for sale, it is said that the T1 factory in Zhunan and the third Nanke factory are also evaluating their production capacity, and further consolidation is not ruled out in the future.

Hong Jinyang, chairman of Innolux, said that asset activation will be maintained at a good scale and adjustments will be made. It will no longer pursue volume and market share, but will instead pursue the best production efficiency and maximum cost-effectiveness. This will be beneficial to the industry, not only for panels, but also for advanced packaging.