TSMC is nearing a deal with AUO to buy up to 4 plants to convert for CoWoS advanced packaging, media report, citing unnamed supply chain sources. TSMC has sent multiple teams to inspect AUO plants in the Central Taiwan Science Park and is expected to ink a deal for 2 plants and a right of first refusal for 2 more. Buying older plants with cleanrooms shortens the time to new CoWoS capacity, compared to building anew.

A purchase would also boost TSMC affiliate Xintec (41% stake), which has already booked out space in its new P2 plant and needs more to meet TSMC demand for System-Level Testing (SLT). $TSM $NVDA $AVGO $GOOGL $AMZN #AUO #semiconductors https://www.ctee.com.tw/news/20261029700077-430501