AU Optronics to acquire Toshiba subsidiary

Meanwhile, AU Optronics (AUO) and Toshiba Mobile Display (TMD) intend to enter into certain agreements relating to each party's intellectual property rights. This acquisition, when it becomes effective, will hopefully help AUO to gain business opportunities in high-end notebook and smart phone market. "AUO has devoted to developing LTPS technologies for a long time," AUO's CEO and President, Dr. L. J. Chen said, "With AFPD's fab, capacity, talents and technologies, AUO's competence in high-end display market is further strengthened. In addition, the acquisition could help to place AUO in a special strategic position in slim notebook and smart phone for the high-end markets and new application markets such as tablet PC." Currently, the world's latest generation fab capable of producing LTPS is G4.5. The G4.5 fab of AFPD has a capacity of approximately 45,000 sheets per month. The acquisition of AFPD in Singapore will allow AUO to establish a new operating manufacturing base in Asia in addition to Taiwan and China. The proposed transaction is subject to the signing of definitive agreements between AUO and TMD, as well as to any necessary approvals.