News

SK Hynix considers acquiring LG Display P7 factory to address manufacturing capacity shortage

Friday, February 13, 2026 at 01:23 AM

SK Hynix is reportedly considering the acquisition of LG Display's P7 factory in South Korea. This potential move highlights a trend where semiconductor manufacturers evaluate legacy display production facilities for repurposing to expand chip manufacturing capacity.

Context

Major semiconductor and AI infrastructure players are aggressively acquiring legacy display fabs to bypass long construction timelines and meet surging demand. High-spec cleanrooms in older LCD facilities, now unprofitable for panel makers like Innolux and AUO, offer a shortcut for AI scaling. TSMC set the pace in 2024 by acquiring Innolux's Fab 4 for NT$17.14 billion, while Powertech Technology spent NT$6.9 billion on an AUO facility to boost advanced packaging capacity for AI and automotive sectors. The trend is expanding globally as ASE Group reportedly negotiates for Innolux's Fab 5, while SK Hynix reviews acquiring LG Display’s P7 plant in South Korea. Following J-Touch’s factory closure in January 2026, companies like Micron are also inspecting idle sites for rapid expansion. These deals allow chipmakers to secure critical manufacturing space years faster than greenfield projects, signaling a major supply chain realignment where the AI industry cannibalizes shrinking legacy display assets.

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