AUO Sells Two Central Taiwan Science Park Plants to TSMC for NT$38.8 Billion
AUO Chairman Paul Peng confirmed at an investor conference that the company will sell its L7 plant (a 7.5-generation plant) and L5C plant (a 5-generation plant) in the Central Taiwan Science Park to TSMC for NT$38.8 billion, with an estimated disposal gain of about NT$18.5 billion, bringing its asset revitalization work to a close. AUO had originally planned to sell its L3D/L5D plants in the Hwaya campus to Quanta for NT$19.7 billion, but the deal was terminated because the two sides failed to reach a consensus, and AUO will continue to look for buyers. The recovered funds will be invested first in MicroLED, optical communications, AI-related applications, and advanced semiconductor packaging, among other fields.
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AUO Chairman Paul Peng said at an investor conference yesterday (the 29th) that the company will sell its Central Taiwan Science Park L7 plant (a 7.5-generation plant) and L5C plant (a 5-generation plant) to TSMC for NT$38.8 billion, with an estimated disposal gain of about NT$18.5 billion, and that AUO's asset revitalization work will come to an end after this case.
In mid-August, this newspaper exclusively reported that AUO would sell two Central Taiwan Science Park plants to TSMC for more than NT$30 billion, and Peng confirmed the news yesterday. However, a case previously approved by AUO's board to dispose of the L3D/L5D plants in the Hwaya plant area to Quanta for NT$19.7 billion was terminated by a resolution yesterday because the two sides failed to reach a consensus, and the company will continue to look for suitable buyers in the future.
The two plants Quanta originally planned to buy were to be used for back-end assembly, testing and validation of AI servers, with handover expected to be completed in the fourth quarter of 2027 to further support AI product order demand after 2028. Quanta explained that because the two sides did not formally sign any physical contract, the transaction does not stand and will not affect its finances.
Peng also announced that AUO's asset revitalization work to date will come to an end. This asset disposal is mainly aimed at focusing on an asset-light operating model, revitalizing assets and optimizing the financial structure. In the future, the funds recovered from the plant disposals will be invested first in new businesses and new technologies, including MicroLED, optical communications, AI-related applications and advanced semiconductor packaging and other fields.
As for how the funds will be used, Peng said that in addition to investing in new technology development and equipment needed for future mass production, AUO will also use part of the funds to improve its financial structure and maintain a stable dividend policy.
Speaking about the sale of the Phase 2 Central Taiwan Science Park plant to TSMC, Peng said the plant area is still in production, and subsequent procedures including production shutdown, handover and administrative processes remain to be completed, so it is certain that no disposal gain will be recognized this year; whether it can be booked next year or the year after will depend on the progress of the relevant procedures.