AUO Corp
TWSE:2409
AUO Corp
AUO Corp., originally known as Acer Display Technology Inc., has its roots deeply embedded in Taiwan's technology landscape. Emerging from the bustling hub of Hsinchu Science Park in the late 1990s, AUO swiftly transformed into a formidable force within the global display panel industry. The company specializes in the design, development, and manufacturing of display solutions, most notably supplying thin-film-transistor liquid crystal display (TFT-LCD) panels. These panels are integral components in a broad range of devices—from smartphones and tablets to flat-screen TVs and laptops. By constantly innovating in terms of both technology and design, AUO has cemented its status as a key player in the global supply chain, serving major consumer electronics brands around the world.
The secret to AUO’s profitability lies in its vertically integrated business model. The company not only focuses on the manufacturing of TFT-LCD panels, but also invests considerably in research and development to push the boundaries of display technology. This includes advancements in organic light-emitting diode (OLED) technology, as well as new areas like micro-LED and touch panel innovations. By controlling the entirety of the production process from raw materials to the final product, AUO can effectively manage costs, maintain high-quality standards, and adapt quickly to market changes. Additionally, the company's strategic partnerships and collaborations with global tech giants unlock further avenues for revenue generation, allowing it to remain at the forefront of technological advancement while driving sustainable growth.
AUO Corp., originally known as Acer Display Technology Inc., has its roots deeply embedded in Taiwan's technology landscape. Emerging from the bustling hub of Hsinchu Science Park in the late 1990s, AUO swiftly transformed into a formidable force within the global display panel industry. The company specializes in the design, development, and manufacturing of display solutions, most notably supplying thin-film-transistor liquid crystal display (TFT-LCD) panels. These panels are integral components in a broad range of devices—from smartphones and tablets to flat-screen TVs and laptops. By constantly innovating in terms of both technology and design, AUO has cemented its status as a key player in the global supply chain, serving major consumer electronics brands around the world.
The secret to AUO’s profitability lies in its vertically integrated business model. The company not only focuses on the manufacturing of TFT-LCD panels, but also invests considerably in research and development to push the boundaries of display technology. This includes advancements in organic light-emitting diode (OLED) technology, as well as new areas like micro-LED and touch panel innovations. By controlling the entirety of the production process from raw materials to the final product, AUO can effectively manage costs, maintain high-quality standards, and adapt quickly to market changes. Additionally, the company's strategic partnerships and collaborations with global tech giants unlock further avenues for revenue generation, allowing it to remain at the forefront of technological advancement while driving sustainable growth.
Revenue: Q4 revenue was TWD 70.1 billion, roughly flat QoQ, with Mobility Solutions up 9% and Display down about 4%. Full-year 2025 revenue reached TWD 281.4 billion, up 0.4% YoY.
Profitability: Net profit for Q4 was TWD 2.88 billion, helped by a TWD 4.8 billion gain from a plant sale. Gross margin improved to 10.7%, up 1.1% QoQ and 2.9 ppt YoY.
Business Mix Shift: Higher-margin Mobility and Vertical Solutions made up 43% of 2025 revenue, up from 38% in 2024, while Display’s share declined.
Guidance: Q1 2026 revenues expected to fall across all segments due to seasonality and fewer working days. Mobility Solutions to drop high single digits QoQ; Vertical Solutions expected flat or slightly down.
CapEx & Depreciation: 2025 CapEx was TWD 18.2 billion and depreciation TWD 29.8 billion. 2026 CapEx expected not to exceed TWD 20 billion; depreciation to be about TWD 28 billion.
AI & Micro LED: Management highlighted progress in AI applications and micro LED volume production, with micro LED poised to play a growing role in new products and solutions.
Long-term Strategy: By 2030, Mobility and Vertical Solutions are targeted to make up 70% of revenue, with the company focusing more on profitability and stable margins.
