AUO Corporation ("AUO" or the "Company") (TWSE: 2409) announced today that the Board of Directors has approved the incorporation of the Company’s Mobility Solution Business Group and BHTC into AUO’s newly established, wholly-owned subsidiary, AUO Mobility Solution Corporation (“AMS”). AMS will focus on meeting the needs of the smart mobility industry and enhancing the overall operational efficiency of AUO’s mobility solution business. Through converting business group into a new company, this should accelerate cross-border management and system integration, driving continued expansion in the automotive sector and R&D innovations. By becoming a comprehensive smart mobility solutions provider, AMS aims to securely seize market opportunities, optimizing the overall operational performance and business competitiveness of both the Group and the Company.

AUO has been dedicated to automotive displays for several years and recently acquired BHTC to achieve synergy in three major aspects: product portfolio, client service, and manufacturing footprint. Through an integrated management system, AUO aims to enhance the efficiency and scalability of the entire enterprise, maximizing shareholder value through strategic operational transformation. The Board of Directors has passed the resolution to allow the Mobility Solution Business Group to operate as a new company. This move is expected to enhance operational performance, achieve one-stop integration, accelerate client base expansion, deepen collaboration within the value chain for development excellence, and improve the integration efficiency of R&D and manufacturing, ultimately leading to business growth.

"As the smart mobility business continues to grow, the establishment of AMS aims to accelerate business expansion and meet the demands of various markets globally," said Paul Peng, Chairman and Group Chief Strategy Officer of AUO. "Aligning with the three pillars of sustainable development - Mobility Solution, Vertical Solution and Display, AMS will continue its efforts in R&D, manufacturing and the expansion of smart mobility solutions. Additionally, AMS will maintain close relationships with global clients and partners. As the parent company, AUO will focus on developing innovative display and Micro LED technologies, supporting the Mobility Solution and Vertical Solution businesses with group synergy. This approach will help achieve strategic growth targets, reinforce AUO group’s leading position in the market, while establishing a stable and profitable structure that creates sustainable values for clients and investors.

The objectives and expected benefits of establishing AMS are:

• Resource integration: Building a one-stop collaboration platform that encompasses product development, manufacturing and sales under consistent process, achieving resource synergy to accelerate the development of the smart mobility business.
• Supply Chain Resilience: Adjusting supply chain strategies promptly in response to market demands and facilitating external collaboration to improve capital efficiency and flexibility of resource allocationss, thereby enhancing new product development and accelerating time to market to meet emerging and diverse market needs.
• Decision-making Efficiency: By transforming the business group into a company, the organization can better align its priorities, enhance decision-making and communication efficiency, and bridge business strategies to market opportunities, thereby achieving greater operational performance.

AMS is a 100% wholly-owned subsidiary of AUO, with the effective date to commence operations tentatively scheduled for January 1, 2026. There is no shareholding divestment plan, therefore there will be no impact on AUO shareholders’ rights. In the future, AUO’s Board of Directors will continue to supervise and manage its subsidiaries in accordance with corporate governance standards that align with the interests of all shareholders. AUO will also support the operational growth of AMS with its strong financial structure, aiming to create greater business opportunities for Mobility Solution, and seize global smart display business opportunities for achieving the commitment of creating sustainable value for clients, employees and shareholders.