News

AUO Announces the Establishment of a New Company, AUO Mobility Solutions Corporation

Expanding in the Smart Mobility Ecosystem to Boost Overall Operational Performance and Business Competitiveness

2024/11/21

AUO Corporation ("AUO" or the "Company") (TWSE: 2409) announced today that the Board of Directors has approved the incorporation of the Company’s Mobility Solution Business Group and BHTC into AUO’s newly established, wholly-owned subsidiary, AUO Mobility Solutions Corporation. AUO Mobility Solutions will focus on meeting the needs of the smart mobility industry and enhancing the overall operational efficiency of AUO’s mobility solution business. Through converting business group into a new company, this should accelerate cross-border management and system integration, driving continued expansion in the automotive sector and R&D innovations. By becoming a comprehensive smart mobility solutions provider, AUO Mobility Solutions aims to securely seize market opportunities, optimizing the overall operational performance and business competitiveness of both the Group and the Company. 

 

AUO has been dedicated to automotive displays for several years and recently acquired BHTC to achieve synergy in three major aspects: product portfolio, client service, and manufacturing footprint. Through an integrated management system, AUO aims to enhance the efficiency and scalability of the entire enterprise, maximizing shareholder value through strategic operational transformation. The Board of Directors has passed the resolution to allow the Mobility Solution Business Group to operate as a new company. This move is expected to enhance operational performance, achieve one-stop integration, accelerate client base expansion, deepen collaboration within the value chain for development excellence, and improve the integration efficiency of R&D and manufacturing, ultimately leading to business growth. 

 

"As the smart mobility business continues to grow, the establishment of AUO Mobility Solutions aims to accelerate business expansion and meet the demands of various markets globally," said Paul Peng, Chairman and Group Chief Strategy Officer of AUO. "Aligning with the three pillars of sustainable development - Mobility Solution, Vertical Solution and Display, AUO Mobility Solutions will continue its efforts in R&D, manufacturing and the expansion of smart mobility solutions. Additionally, AUO Mobility Solutions will maintain close relationships with global clients and partners. As the parent company, AUO will focus on developing innovative display and Micro LED technologies, supporting the Mobility Solution and Vertical Solution businesses with group synergy. This approach will help achieve strategic growth targets, reinforce AUO group’s leading position in the market, while establishing a stable and profitable structure that creates sustainable values for clients and investors. 

 

The objectives and expected benefits of establishing AUO Mobility Solutions are: 

  • Resource integration:Building a one-stop collaboration platform that encompasses product development, manufacturing and sales under consistent process, achieving resource synergy to accelerate the development of the smart mobility business.
  • Supply Chain Resilience:Building a one-stop collaboration platform that encompasses product development, manufacturing and sales under consistent process, achieving resource synergy to accelerate the development of the smart mobility business.
  • Decision-making Efficiency:By transforming the business group into a company, the organization can better align its priorities, enhance decision-making and communication efficiency, and bridge business strategies to market opportunities, thereby achieving greater operational performance. 

 

AUO Mobility Solutions is a 100% wholly-owned subsidiary of AUO, with the effective date to commence operations tentatively scheduled for January 1, 2026. There is no shareholding divestment plan, therefore there will be no impact on AUO shareholders’ rights. In the future, AUO’s Board of Directors will continue to supervise and manage its subsidiaries in accordance with corporate governance standards that align with the interests of all shareholders. AUO will also support the operational growth of AUO Mobility Solutions with its strong financial structure, aiming to create greater business opportunities for Mobility Solution, and seize global smart display business opportunities for achieving the commitment of creating sustainable value for clients, employees and shareholders.