To strengthen its position in high-end notebook and smart phone market
AU Optronics (AUO) has signed an MOU with Toshiba Mobile Display (TMD), to purchase 100% shares of AFPD, a subsidiary of TMD in Singapore and a manufacturer of LCD panels based on low temperature polysilicon (LTPS) technology.
AUO and TMD intend to enter into certain agreements relating to each party’s intellectual property rights.
AUO said that it is hopeful that the acquisition will help to gain business opportunities in high-end notebook, smart phone market and establish a new operating manufacturing base in Asia in addition to Taiwan and China.
The company said the new site will hopefully be able to serve the high-end display markets in South Asia, the Middle East, Australia and New Zealand. The proposed transaction is subject to the signing of definitive agreements between AUO and TMD, as well as to any necessary approvals.
Dr. L. J. Chen, CEO and president of AUO, said, AUO has devoted to developing LTPS technologies for a long time. With AFPD’s fab, capacity, talents and technologies, AUO’s competence in high-end display market is further strengthened.
“In addition, the acquisition could help to place AUO in a special strategic position in slim notebook and smart phone for the high-end markets and new application markets such as tablet PC. We expect AUO to soon provide value-added LTPS technologies to our customers and to the end consumers.