Taiwan's Innolux is turning its panel factories into an advanced chip packaging business, a positive sign for the company and for AI chipmakers looking for cheaper packaging.

• Innolux launched a new "Chip Last" packaging platform and plans to start mass production in the second half of 2027.
• The pitch is cost: using very large panels instead of round wafers wastes less material and squeezes out more chips per run.
• AI and high-performance computing chips keep getting bigger and more expensive to package, which is what creates the opening.
• Innolux is reusing its existing display plants as ready-to-go production lines, and offering testing plus packaging as one package to customers.
• Target markets go beyond AI: optical communications, robots, and car electronics.

Outlook: The panel-level packaging market is expected to grow from under a billion dollars in 2024 to more than $8 billion by 2030, so the race to qualify with customers over the next two years is what matters.