Witsview: The AU Optronics (AUO) affiliates are Konly Venture Corporation, Darly3 Venture and Darly Consulting. They have acquired 25.8 million shares of Orise Technology, who in turn is a subsidiary of Sunplus Technology. Not that it matters to AUO one bit, but the affilates’ stake are as follows:
- Konly Venture: 19.5%
- Darly Consulting: 2.91%
- Darly3 Venture Corporation: 2.59%
Sunplus is a integrated chip (IC) design manufacturer and so is Orise. AUO seems to be interested in owning driver IC companies:
- 70% stake in Raydium Semiconductor
- 40%+ in Data Fast Electronics
Novatek Microelectronics, who is a major supplier of driver ICs to AUO, will face in-house competition from AUO’s increased stakes in these companies. Because of ever falling prices of LCDs, manufacturers such as AUO must continue to reduce cost of manufacturing at a rate faster than falling prices and to do that vertical integration of key components has been the main strategy. AUO is involved in backlight development, polarizers, CCFLs, LCD driver ICs and inverters.