The announcement shows that AUO will sell all three color filter factories, C4A, C5D and C6C, located in Tainan Science and Technology Industrial Park in this transaction. Among them, C5D and C6C have stopped production in August 2023, while the C4A factory, which is still in production, will continue to operate in the form of sale and leaseback. The transaction involves a land area of 87,379.04 square meters, a building area of 146,033.28 square meters, and a total transaction value of NT$7.4 billion. AUO's disposal of the panel giant AUO announced on Tuesday that it would sell several of its factories to the storage giant Micron Technology for NT$8.1 billion (approximately RMB 1.808 billion).

Panel giant AUO (AUO) announced on Tuesday (27th) that it and its subsidiary AUO Crystal AUO Crystal's multiple factories in Tainan City and Taichung City in Taiwan will be sold to the storage giant Micron Technology for NT$8.1 billion (approximately RMB 1.808 billion).

The announcement shows that AUO will sell all three color filter plants, C4A, C5D and C6C, located in Tainan Science and Technology Industrial Park in this transaction. C5D and C6C have stopped production in August 2023, while the C4A plant, which is still in production, will continue to operate in a sale-leaseback manner. The transaction involves a land area of 87,379.04 square meters and a building area of 146,033.28 square meters. The total transaction value is NT$7.4 billion, and AUO's disposal income is NT$4.174 billion.

In addition, AUO will also sell some buildings and ancillary facilities of its subsidiary AUO Crystal Materials located 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. The transaction value is NT$700 million, and the disposal proceeds are NT$544 million.

AUO said that the sale of the plant is to focus on its core business and operating strategy. The company hopes to concentrate resources and energy on more potential and competitive areas by selling idle or discontinued plants. On the other hand, the global LCD market is saturated, and panel demand has entered a flat or declining stage. At this time, the sale of some idle plants can reduce unnecessary investment and operating costs and better adapt to market changes.

Currently, Micron Technology has memory plants in Linkou, New Taipei City and Taichung, Taiwan. These plants are not only capable of producing the most advanced 1-beta nanometer memory, but also have HBM memory advanced packaging facilities. In addition, Micron Technology's Taichung Plant 4 started construction in November 2023 and announced that it will integrate advanced detection and packaging test functions to produce products such as HBM3E.

Micron Technology said that the acquisition of plant assets will mainly be used to expand advanced packaging and high-bandwidth memory (HBM) production capacity. Micron plans to transform these plants into front-end wafer testing facilities to support its DRAM production business in Taichung and Taoyuan plants to meet growing market demand.

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