TSMC is reportedly considering buying AUO's Zhongke L7 and L5C plants in a deal estimated at more than NT$30 billion. According to ChainCatcher, the two sides are negotiating under a model similar to the Innolux transaction, and TSMC has sent personnel to conduct on-site due diligence, though no signing or announcement has been made.

The AUO site is adjacent to TSMC's Zhongke Fab 15, which the report says gives the deal geographic advantages. TSMC also plans to use CoPoS as its next major 2.5D advanced packaging technology after CoWoS, introducing panel-level glass substrate packaging to reduce wasted space and warpage for very large AI chips on 12-inch wafers.

TSMC's first CoPoS production line has already been completed and started up at its AP7 plant in Chiayi. Industry participants said panel makers have experience in handling large substrates and managing production lines, making them providers of the intermediate capabilities needed for advanced packaging to move into mass production.