AUO Accelerates Asset Revitalization, Sells Plants for NT$26 Billion

AUO, a leading Taiwanese electronics manufacturer, is actively pursuing asset revitalization to fund its strategic transformation. The company announced on July 30th that its board approved the sale of its Kaohsiung plant to ASE Technology Holding for NT$6.3 billion (approximately $190 million USD), following a previous deal to sell its Huaya plant in Hsinchu Science Park to Quanta Computer for NT$19.7 billion (approximately $600 million USD).

These two transactions are set to bring in a total of NT$26 billion (approximately $780 million USD) and are expected to contribute approximately NT$17.67 billion (approximately $530 million USD) in disposal gains, which will be recognized in the company's financial statements in the latter half of this year. AUO's second-quarter financial report also revealed a return to profitability, with its gross profit margin rising to 13% due to its successful transformation strategy and optimized product mix.

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For existing production lines that have completed their phase-based mission and have lower competitiveness, we will promote asset revitalization through a 'replacing old with new' approach to make space for more future-oriented technologies and new products. Idle factory buildings and spaces will also be utilized more efficiently through asset revitalization.

Chairman Paul Peng explained that the company continuously reviews the operational efficiency and asset value of its various plants. "For existing production lines that have completed their phase-based mission and have lower competitiveness, we will promote asset revitalization through a 'replacing old with new' approach to make space for more future-oriented technologies and new products," Peng stated. He added that idle factory buildings and spaces will also be utilized more efficiently through asset revitalization.

The funds recovered from these asset sales will be prioritized for investment in high-value-added products, new technologies, and AI initiatives. The board also approved a capital expenditure of NT$8.6 billion (approximately $260 million USD) for high-value products, AI-related new technologies, and mass production preparations. Combined with investments approved in February, AUO's capital expenditure this year is nearing NT$20 billion (approximately $600 million USD), signaling the company's commitment to investing in future growth drivers. Peng emphasized that AUO will adhere to the principle of "precise investment," gradually increasing investments based on new technology development and market demand, concentrating resources on high-value-added and AI-related fields to accelerate transformation and enhance long-term competitiveness.

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precise investment