Foxconn announced that it plans to sell its 6G LTPS (Low Temperature Polycrystalline Silicon) production line in Luzhu, Kaohsiung to Taiwanese TFT LCD (Thin Film Transistor Liquid Crystal Display) panel manufacturer Innolux Corporation for NT$31.43 billion (US$1.0 billion; US$1=NT$30.1), the Economic Daily News reported on November 15. This transaction is estimated to boost Innolux's global share of LTPS from current 2% to 8% in anticipation of the increase in revenue, production capacity and technology. Most importantly, this will help Innolux cut into Apple's supply chain.
Innolux said that there are three reasons behind the acquirement of Foxconn's LTPS line. The first is to balance the production line by increasing the revenue from small- and medium-sized panels, the second is to increase its global share in LTPS from 2% to 8% as its first 3.5G LTPS line only manages to produce 50,000 and 60,000 units per month; the third is to assist the company in developing advanced panel technologies for high-end smartphones.