AU Optronics announced today (2nd) that its subsidiary, Daqing, and E Ink Holdings (Taiwan Stock Exchange code: 8069), seeing the continued growth of business opportunities in the green display field, signed an investment agreement today to establish a joint venture with a capital of NT$390 million. Daqing will hold 51% of the shares and E Ink will hold 49%. They will jointly build a large-scale electronic paper module production line at AU Optronics' Taoyuan Longke plant, which is expected to start production in the fourth quarter of 2025.
In this collaboration, E Ink will leverage its advantages as a global leader in e-paper technology to provide key e-paper technologies and materials. This will be combined with AU Optronics Group's outstanding panel design, smart manufacturing, and management capabilities, as well as Datang's customer resources and global market presence in the smart retail sector. This will further amplify the strong foundation of AU Optronics' display product line strategy for entering the low-carbon digital transformation market and actively expand the application opportunities of large-scale e-paper displays. At the same time, AU Optronics will further deepen its investment layout and operations in Taiwan by introducing new technologies to its Taoyuan Longke plant.
As ESG has evolved from a trend into a standard, the energy-saving, readability, efficiency-enhancing, and environmentally friendly characteristics of e-paper displays complement the increasingly valued green business opportunities, leading to a gradual increase in market demand for large-scale digital display applications. This collaboration between the two companies capitalizes on the ESG wave of low-carbon digital transformation, creating a more complete supply chain and ecosystem. Together, they will strive to maximize efficiency and increase the adoption rate of large-scale e-paper display applications. The expected synergies of this collaboration include:
- Seamless integration of technology and manufacturing: E Ink, as a global leader in e-paper technology, provides key technologies and materials for e-paper displays, possessing the latest and most competitive large-size color e-paper technology. AU Optronics, based on its leading multi-display technologies and extensive experience in display design and manufacturing, can provide more efficient and stable products, thereby improving the display quality and durability of large-size color e-paper modules.
- Expanding Market Footprint Through Comprehensive Product Applications: Daqing boasts a diverse product portfolio spanning LCD, LED, and Micro LED display applications, along with strong marketing and integration capabilities. It integrates its products into a wide range of smart retail, enterprise displays, and advertising billboards, providing customers with diversified solutions. This collaboration will actively expand the overseas markets and growth potential of large-format color e-paper, meeting diverse and differentiated application needs of customers, enhancing market competitiveness, and contributing to the expansion of its presence in the low-carbon digital display application arena.
"AU Optronics Group values strategic collaborations across different display technology ecosystems. Leveraging its extensive core display technologies and smart manufacturing experience, we work with partners to create value in vertically integrated fields, delivering more innovative and differentiated products and services to our customers," said Ko Fu-Jen, CEO and General Manager of AU Optronics. "The strategic collaboration between Datang and E Ink, combining technology, manufacturing, and market resources, will provide more competitive products, a stable supply chain, and more comprehensive market solutions. Our goal is to gain a market advantage through a more complete ecosystem for large-format color e-paper applications."
"E Ink Holdings, with its globally leading electronic paper material technology at its core, actively collaborates with supply chain partners to jointly build a robust and forward-looking industrial ecosystem," said Lee Cheng-hao, Chairman of E Ink Holdings. "E Ink and AU Optronics have a long-standing and close partnership, from initially supplying TFT backplanes to today's joint venture to build a high-specification, large-size electronic paper module production line. This demonstrates the strong capabilities and unwavering determination of both parties in deeply cultivating the electronic paper industry, and further highlights E Ink's consistent support for its partners. Looking ahead, E Ink will continue to refine its technological innovation and manufacturing capabilities for electronic paper material FPL, and work with ecosystem partners to comprehensively enhance the scale and competitiveness of the large-size electronic paper industry, actively promoting the electronic paper display application market towards more diversified and broader development."
In recent years, AU Optronics has deepened its vertical market presence through a dual-axis transformation strategy. Its subsidiary, Datang, by integrating advanced display technologies and hardware/software application services, has provided various solutions in multiple vertical application areas such as smart retail, enterprise and education, transportation, and healthcare, helping customers create new business opportunities in digital display and interaction. Datang's strategic collaboration with E Ink Holdings to jointly build a large-scale e-paper module production line will, amidst the surging demand for sustainability, further popularize low-carbon digital transformation across various vertical sectors, creating optimal benefits for customers. This investment in related production lines demonstrates AU Optronics' deep commitment to Taiwan, its continued expansion of its manufacturing footprint in Taiwan, its increased investment in technology research and development and talent cultivation, and its accumulated advantages and capabilities in AU Optronics' dual-axis transformation strategy.
