AU Optronics Corp. plans to spin off its automotive display business into a wholly-owned subsidiary, marking its latest effort to capture a bigger share of the growing smart mobility market.
The new unit, AUO Mobility Solution Corporation, will incorporate the company’s existing smart mobility division and BHTC operations. The subsidiary is set to begin operations on January 1, 2026, with AUO maintaining full ownership.
Chairman Shuang-lang Peng said the reorganization would help accelerate business expansion and cater to diverse global market demands. The move aligns with AUO’s three-pillar strategy focused on smart mobility, vertical integration, and display technology development.
The Taiwanese display maker sees the restructuring as a way to streamline management and boost operational efficiency. Following its BHTC acquisition, AUO has reported synergies across product portfolios, customer relationships, and production clusters.
The parent company will concentrate on advancing display technology, including MicroLED development, while supporting the new mobility unit. AUO emphasized that the reorganization won’t affect shareholder rights as no share distribution is planned.
The strategic shift comes as global automotive manufacturers increasingly demand sophisticated display solutions for their vehicles, presenting growth opportunities for specialized suppliers.