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Wednesday, March 31, 2010
Toshiba Mobile Display and AU Optronics Agree MOU on AFPD Stock Transfer

Toshiba Mobile Display Co., Ltd. (TMD) has signed a memorandum of understanding (MOU) with AU Optronics Corporation (AUO) under which it proposes to transfer to AUO all shares in its wholly owned subsidiary AFPD PTE., LTD. (AFPD) that is the manufacturing site of LCD displays for PCs.

The companies said that they are continuing discussions on the transfer, and aim to conclude a definitive agreement by the end of April 2010.

AFPD possesses technology for high-definition, slim, light low temperature polysilicon LCDs, and currently produces displays for high-end notebook PCs. TMD realizes the difficulty of promoting further growth in demand and securing profit for the types of LCDs which AFPD produces.

AUO intends to acquire AFPD as a manufacturing site of, among other products, small- and medium-sized LCDs, and through this transfer, AUO aims to further strengthen its competence in high-end display market and to secure a production facility in a shorter period of time.

TMD will now concentrate management resources on displays for mobile devices, including mobiles phones and Smartphone, and for automotive applications such as car navigation. The company will continue to implement restructuring initiatives to return its LCD business to the path of sustained growth with profit.

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