AU Optronics (AUO) has announced the sale of two of its factories, located in Tainan and Taichung, to Taiwan Micron Memory Company. The combined transaction is expected to generate proceeds of more than NT$4.7 billion (US$148.5 million), with NT$4.174 billion from the Tainan facility and NT$544 million from the Taichung site.
The move is part of AUO’s broader strategy to adopt a more flexible, light-asset manufacturing model. The company is focusing on optimizing factory space and reallocating production capacity to other facilities. The Tainan factory’s production lines are set to close in 2023, and the sale of these assets will help enrich working capital and support the company’s core growth areas: Mobility Solutions, Vertical Solutions, and Display Technology.
AUO’s leadership highlighted that this transaction with Micron could open doors for further collaboration between the two companies. The sale aligns with AUO’s long-term business strategy to enhance overall operational efficiency.
Market analysts, such as those from TrendForce, have noted that this sale is similar to Innolux’s recent disposal of idle assets. The sale is expected to have a positive impact on AUO’s financial performance this year as the company shifts its focus towards higher efficiency and growth in key areas.
