Micron Technology Acquires AUO's Plant for NT$8.1 Billion

Panel company AUO announced that it would sell several factories of the company and its subsidiary AUO Crystal in Tainan City and Taichung City, Taiwan to storage giant Micron Technology for NT$8.1 billion. 

In addition, AUO will also sell some buildings and ancillary facilities of its subsidiary AUO Crystal in the Central Science Park in Houli District, Taichung City. The real estate is adjacent to Micron's Taichung plant, with a total area of 32,500 square meters, a transaction value of NT$700 million, and disposal proceeds of NT$544 million. 

AUO sold these factories to focus on its core business and operating strategy. AUO hopes to concentrate resources and energy on more potential and competitive areas by selling idle or discontinued factories. 

At the same time, these factories' sales are also to cope with market environment changes. The global LCD market is saturated, and panel demand has entered a flat or declining stage. Continuous expansion will only lead to overcapacity and price wars. AUO sold some factories to reduce unnecessary investment and operating costs to better adapt to market changes. Micron Technology plans to acquire two factories under AUO, which will be mainly used to expand advanced packaging and high-bandwidth memory (HBM) production lines. Micron Technology said that the acquired factories will be mainly used for front-end wafer testing to support its DRAM production expansion in Taichung and Taoyuan.