Innolux: Sold Nanke Factory 5 for 1.365 billion

On March 24, Innolux announced that it would dispose of the factory building and related ancillary facilities (Nanke Factory 5) located in Tainan Science Park. The transaction object is Silicon Precision, a subsidiary of ASE Investment Holdings, a leader in packaging and testing. The total transaction amount is approximately NT$6.325 billion (approximately RMB 1.365 billion), and the disposal proceeds are approximately NT$5.8 billion (approximately RMB 1.252 billion).

Innolux stated that the disposal of Nanke No. 5 Factory will inject momentum into the company’s operations and future development and enrich working capital. Innolux has continued to promote the consolidation of old-generation production capacity in recent years. Last year, it announced that it would close Nanke's second and fifth factories. The company also recently announced that a module factory in Nanke was sold to Nanmao, with a disposal profit of approximately NT$659 million (approximately RMB 142 million).

According to Innolux's announcement, the target of this disposal is the factory building and its ancillary factory equipment located at No. 58-0, Xinke Section, Xinshi District, Tainan City (No. 2, Section 2, Huanxi Road), with a building area of ​​approximately 139,000 square meters, and a total transaction amount of NT$6.325 billion (excluding tax). The case was approved by the board of directors, and a professional appraisal report was used as the basis for the price, which was obtained by Silicon Products for business use.

According to industry analysis, Innolux's disposal of the Nanke factory reflects its lean asset management strategy and accelerates the realization of existing assets by obtaining transaction amounts that are better than professional valuations. Innolux has actively promoted transformation in recent years, not only focusing on niche panels, but also venturing into high-end technologies such as panel-level fan-out packaging (FOPLP). The proceeds from this disposal will help enrich the silver bullet and support subsequent technology research and development and industrial layout.

For the buyer ASE Investment Holdings, it adopts the strategy of "short-term expansion and long-term retention". By acquiring the existing factory of Innolux, it can quickly introduce the production line and shorten the factory construction time. At the same time, it reserves space for future production capacity expansion through park land leasing to meet the needs of AI and high-performance computing (HPC). (Source: Taiwan Economic Daily, MoneyDJ)

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