AU Optronics (AUO) and Haier Considering Strategic Alliance

Strategic Alliance: According to the Commercial Times, AU Optronics (AUO) and Haier Group have entered talks for a strategic alliance. CEO of Haier, Zhang Ruimin, recently visited Taiwan for six days. AUO’s chairman, KY Lee, stated that Haier is a current customer and that there exists the possibility of further cooperation.

Stable Demand: LG Display has LG Electronics. Samsung’s LCD department has multiple Samsung brands. Sharp and Panasonic are similarly vertically integrated with a display manufacturing unit supplying the brand units whether for TVs, monitors or mobile phones. But the top LCD manufacturers in Taiwan such as AUO and Chi Mei Optoelectronics (CMO) don’t have such strong relationships with brands. Sure the aforementioned brands purchase LCD panels from AUO and CMO but they are usually for the budget-minded versions. With a strategic alliance with Haier, AUO can have a strong partner with a more stable demand for its LCD panels.

Source: “AUO, Haier in Talks for Strategic Alliance, Commercial Times Says” – Bloomberg

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