Innolux announced its 2025 capital expenditure budget, approximately 3.56 billion yuan

On February 17, Innolux held a board of directors meeting and approved the capital expenditure budget for 2025, totaling approximately NT$16 billion, a decrease of 23.8% compared to last year’s capital expenditure of NT$21 billion. This will also be the first time that the capital expenditure has reached a historical low of less than NT$20 billion.

Innolux held its board of directors and decided that this year’s regular shareholder meeting will be held on May 7. It also decided to establish a corporate governance and nomination committee, and appointed three committee members including Innolux Chairman Hong Jinyang, independent directors Wu Zhiyi and Shen Xinbei.

The board of directors also approved this year's capital expenditure budget of NT$16 billion, which will be mainly used for technology enhancement, efficiency improvement and operation maintenance.

Innolux stated that the implementation of this year's capital expenditure budget will be flexibly adjusted based on customer demand, market conditions and other circumstances, and the actual payment amount will be determined based on the implementation progress and payment conditions.

With the end of the production capacity investment competition in the panel industry, coupled with the active transformation of panel factories, the capital expenditures of the panel companies have dropped sharply in recent years. Innolux's capital expenditures have remained at approximately NT$20 billion to NT$25 billion for six consecutive years. This year's estimated capital expenditures have dropped below NT$20 billion for the first time, setting a new record low.

Although there is no investment in new panel production capacity, Innolux has promoted transformation in recent years and expanded investment in other fields, especially in the semiconductor industry.

Innolux's capital expenditure in the past two years has been approximately NT$21 billion, and it has also begun to invest in FOPLP panel-level packaging mass production lines. Therefore, among the capital expenditures in the past two years, the proportion of semiconductor-related investment has reached 15%.

Innolux said that as the production lines are introduced into mass production in the future and investment in other areas is increased, in the long run, semiconductor-related investment will increase. It is estimated that semiconductor investment The capital ratio will gradually increase to 50%.