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AUO and Innolux Not Exclude to Merge

By Korbin Lan
Published: Feb 24,2014

Taipei , Taiwan - According to Taiwan media, Taiwan's major LCD panel makers AUO and Innolux are willing to talk about the merger of two sides, does not exclude the possibility of becoming one company. The Taiwan government also intends to facilitate the integration of the two companies, but there is no progress now.

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Minister of Ministry of Economic Affairs(MOEA) Chang Chia-juch said that he had discussed with Hon Hai Group Chairman Terry Gou about the merger of AUO, but there are too many problems and preparations to be considered, if two companies has a will to do that, the government will endeavor to assist; AUO chairman KY Lee had also met with the NDC chairman Kuan Chung-Ming, but the specific purpose is not disclosed.

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MOEA officials said , from the industrial point of view, if these two companies to merge, the investment in R & D could be reduced; in production capacity, the two sides have different panel products can provide more competitive product portfolio, MOEA is looking forward to see that happen.

But the merger of two panel factory is very complicated , In addition to the loan debt, the most important problem is the existence of the two companies, is AUO merged Innolux? Or Innolux merged AUO?

This problem had happened on AUO, AUO is the merger of Acer Display and Unipac, but the cultural differences between two companies led conflict, and the ex-general manager of AUO Duan Hsing-chien, the current chairman of Innolux, resigned, and established Innolux supported by Terry Gou.

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