AU Optronics Corp (友達光電), the world’s No. 3 liquid-crystal-display (LCD) panel maker, said yesterday it was not in talks with any company for a merger-and-acquisition deal to meet the challenge created by the planned merger of local rivals Chi Mei Optoelectronics Corp (奇美電子) and Innolux Display Corp (群創光電).
The company dismissed speculation that AU Optronics was seeking a merger-and-acquisition deal with smaller local rival Chunghwa Picture Tubes Ltd (中華映管) to expand capacity and market share.
“We have no substantial M&A target now,” Hsiao Ya-wen (蕭雅文), a senior manager of at company’s corporation communications department, said by telephone yesterday. “We are open to any M&A deals as long as it creates synergy.”
NEW NO. 1
In the middle of last month, Innolux signed an agreement with Chi Mei Optoelectronics to acquire the Tainan-based LCD panel maker via a share swap, which will create the nation’s biggest LCD panel supplier, with a combined market share of 17 percent, dethroning AU Optronics.
The companies intend to wrap up the deal in April.
AU Optronics has a 16 percent market share, Austin, Texas-based market researcher DisplaySearch said.
“This [the Innolux-Chi Mei merger] is a consolidation not only in capacity, but also in business model,” David Hsieh (謝勤益), a vice president at DisplaySearch, said in a report.
Innolux, the world’s No. 2 maker of LCD monitors, also makes flat panels.
RUMORS
To address emerging challenges in the LCD industry, AU Optronics was seeking closer ties with customers like Quanta Computer Inc (廣達電腦), the world’s top notebook computer maker by contract basis, the Chinese-language United Evening News reported yesterday.
“It would be improper for us to comment on any individual customers,” Hsiao said.
However, some of AU Optronics’ customers came to discuss new orders following the announcement of the Chi Mei-Innolux merger, she said.
Shares of unprofitable Chunghwa Pictures rallied by the daily limit 7 percent to NT$4.28 (US$0.13) yesterday, while AU Optronics stocks only inched up 0.61 percent to NT$33.10.
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