AU Optronics (L) Corp., a subsidiary of AUO, announced on the latter’s behalf on April 28th that a sum of RMB 3.995 billion will be used to buy out all shares of the joint venture partners for AU Optronics (Kunshan), and AUO Kunshan will be incorporated as a wholly-owned subsidiary, with an additional investment of US$384 million that combines to a total investment of roughly NT$28 billion (approx. RMB 6.5 billion).
AUO commented that the acquisition of shares was done to enhance the control over AUO Kunshan, and the priority right now is to expand on the production capacity in order to satisfy its clients.
Photo source: Paixin licensed gallery
AUO Kunshan is a joint venture co-established by AUO and the Jiangsu Kunshan Development Zone Construction Group, for which AUO holds 51% of shares through its subsidiary, and the latter also invested NT$50 billion in 2016 to establish the 6th generation LTPS fab in Kunshan, which achieved the fastest mass production speed of LTPS from initiation to mass production within merely 4 months. AUO Shan will become a wholly-owned subsidiary of AUO after all shares of the joint venture partners are acquired, though the acquisition has yet to be approved by the Investment Commission of the Ministry of Economic Affairs.
Frank Ko, President & Chief Operating Officer of AUO, commented that the board has approved on the production expansion of the 6th generation LTPS fab in Kunshan, which will primarily be used to produce high-end notebook panels, followed by a subsequent elevation to full load at 45K in two stages. The first stage will occur in the third quarter next year, which ascends the monthly capacity of the Kunshan fab from 28K to 36K that will satisfy the demand for high-end notebook panels and the mass production of Micro LED.
AUO also announced on the 28th that the company will be selling its L3B fab and the affiliated equipment that is located at No. 1 of Lixing 2nd Road in the Hsinchu Science Park to VIS for NT$ 905 million so as to activate assets, and is expected to receive a gain on proposal of NT$703 million. Fang Leuh, Chairman and President of VIS, signed with Frank Ko, President & Chief Operating Officer of AUO, on the 28th, and the settlement date is set on January 1st 2022. (Source: Economic Daily News)
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