AUO Sells Kaohsiung Plant for NT$6.3 Billion, Gains NT$4.28 Billion in Profit; Approves New Capital Expenditure of NT$8.641 Billion

Display giant AUO (2409-TW) announced today (30) that it has agreed to sell its Kaohsiung plant building and related facility infrastructure to ASE Semiconductor, a subsidiary of ASE Investment Holding (3711-TW), for a total transaction value of NT$6.3 billion, with an estimated disposal gain of NT$4.28 billion.

AUO’s board of directors today also approved a new capital expenditure budget of NT$8.641 billion. The funds will primarily support capacity setup and optimization, as well as strategic investments in new AI technologies—referred to as the 'Four Arrows of AI.' The execution of these capital expenditures will be flexibly adjusted based on market conditions and customer demand.

In February, AUO had already approved a capital expenditure budget of NT$14.666 billion. During today’s earnings call, CFO Dr. Po-Yi Chang explained that the implementation timeline for some projects may extend into next year. Therefore, despite the additional approval of NT$8.641 billion, the company plans to keep its total capital expenditure for this year below the NT$20 billion threshold.

Chairman Dr. Simon Peng emphasized that AUO continues to focus on a light-asset operational model, asset revitalization, and financial structure optimization. The company is phasing out lower-generation production lines with weaker competitiveness while investing in high-value applications, particularly the 'Four Arrows of AI' technologies. On the 28th, AUO announced the sale of its Guishan Hwa Ya facility in Taoyuan to Quanta Computer (2382-TW) for NT$19.7 billion, expecting a disposal gain of approximately NT$13.39 billion.