Spotlight Stock: AUO Surges to Limit-Up on TSMC Plant Acquisition Rumors, Innolux Jumps in Tandem

Market rumors suggest that TSMC (2330-TW) is considering acquiring AUO's (2409-TW) Zhongke plant in Taichung to expand its advanced packaging capacity and enhance cutting-edge production capabilities. It is further reported that TSMC will follow its collaboration model with Innolux (3481-TW) to jointly develop advanced packaging technologies with AUO. On the news, AUO surged to its daily trading limit in early trading today (10th), accompanied by heavy trading volume, while Innolux also rallied sharply to hit its own limit-up.

AUO has previously stated multiple times that it would not enter the advanced packaging field. However, Chairman Paul Peng recently revealed during an earnings call that the company has made progress in Through-Glass Via (TGV) and Redistribution Layer (RDL) processes for advanced packaging. The board has approved a new capital expenditure of NT$8.641 billion, part of which will be allocated to pilot lines for TGV and RDL technologies.

Chairman Peng emphasized that AUO will continue to focus on a light-asset operational model, optimizing asset utilization and financial structure by phasing out lower-generation production lines with weaker competitiveness. At the same time, the company will actively invest in high-value applications, particularly the 'Four Arrows of AI' technology initiatives.