Tech Firms Repurpose Old LCD Plants for AI and Chips
Companies are converting idled display factories into advanced semiconductor and AI infrastructure facilities worldwide.
Updated on Oct. 21, 2026 in Semiconductors
Live Poll
Is it a good idea to repurpose older industrial sites for new technology infrastructure projects?
Global technology firms are transforming former LCD panel manufacturing plants into centers for semiconductor production and AI data processing. This trend follows a shift in display technology and increased competition from Chinese manufacturers that have left many older facilities idle.
Why it matters
Repurposing existing plants allows companies to bypass the lengthy construction process by utilizing established power grids, water systems, and clean rooms. This strategy helps firms rapidly expand their semiconductor and AI capacities while finding new utility for cooling display assets.
TSMC converted an acquired InnoLux facility into the AP8 advanced packaging plant after a purchase of 17.14 billion New Taiwan dollars. Meanwhile, the global LCD market is expected to shrink 5.1 percent this year as demand for legacy panels dips.
The players
TSMC
Taiwan Semiconductor Manufacturing Company is a global leader in the semiconductor foundry industry that provides advanced logic and packaging services.
BOE Technology Group
This Chinese electronics manufacturer is a major global producer of display panels and sensor technologies.
KDDI
This Japanese telecommunications operator provides mobile and fixed-line services while expanding its infrastructure into AI data centers.
LG Innotek
A subsidiary of LG Corporation, this company specializes in electronic components, including semiconductor substrates and camera modules.
The details
Companies are systematically removing legacy LCD production equipment to install infrastructure tailored for semiconductor package substrates and high-density AI servers. By pivoting to these high-growth sectors, firms are leveraging existing clean room environments to achieve faster operational readiness than building new facilities would allow.
Timeline
The P6E plant in Gumi stopped all LCD production in June 2023.
Japan Display's Mobara plant ceased producing iPhone LCD panels in November 2025.
KDDI began operating an AI data center at a former Sharp plant in Osaka in January 2026.
Shinko Electric Industries signed a deal to acquire the Mobara plant on September 30, 2026.
The Tech Race
The repurposing of these facilities marks a strategic retreat from legacy display production that is currently dominated by Chinese firms like BOE and TCL. By transitioning to semiconductor and AI workloads, these companies are shifting their capital toward higher-margin infrastructure.
The transition of these factories signifies a shift in how essential components for consumer electronics and AI-driven services are manufactured. While the change happens behind the scenes, it ensures the continued availability of high-performance chips required for modern smartphones and servers.
The takeaway
Legacy industrial assets are proving to be valuable foundations for the next generation of computing infrastructure. Companies that successfully pivot their aging factories can reduce capital expenditure while meeting the surge in global demand for advanced semiconductor manufacturing.
Further reading
For more on industry hardware trends, visit the Semiconductors section.
Source note: This article includes information reported by Koreajoongangdaily.
Live Poll
Is it a good idea to repurpose older industrial sites for new technology infrastructure projects?
