NT$38.8 Billion Deal for Central Taiwan Science Park Phase II Plant
TSMC announced on Oct. 29 that it will acquire AUO's Taichung Plant Phase II and related facility ancillary facilities located in Anlin Section, Xitun District, Taichung City for NT$38.8 billion, for future operational and production use. The transaction covers the Phase II plant building, cleanrooms and related facility ancillary equipment, with a registered building area of approximately 429,000 square meters, equivalent to approximately 129,800 ping, and a usable area of approximately 166,000 ping. The total transaction amount is tax-exclusive, to be paid in installments in accordance with the real estate sales contract, finalizing the plant transaction between the two parties.
Negotiated Transaction for Operational and Production Use
The transaction was conducted through price negotiation, with pricing based on market conditions and professional appraisal reports. Two professional appraisal institutions valued the property at NT$38.75 billion and NT$38.539 billion respectively, with the parties finally agreeing on NT$38.8 billion. TSMC stated that the plant and related facilities will mainly be used for operational and production purposes, but did not specify a particular advanced process. As AUO's Central Taiwan Science Park site is adjacent to TSMC's existing plants, market rumors of an acquisition had circulated earlier, and this announcement formally confirms the closely watched deal.
AUO Expects NT$18.5 Billion Gain, Asset Revitalization Paused
For AUO, the disposal marks important progress in asset revitalization. AUO approved the disposal on the same day through its board of directors, with a total transaction amount of NT$38.8 billion. After deducting related transaction expenses and estimated taxes, the expected disposal gain is approximately NT$18.5 billion, with the actual recognized amount and timing subject to subsequent transaction progress and accounting treatment. Chairman 彭双浪 said that the company has successively promoted plant disposals this year, and after an overall evaluation, remaining plant space has reached an appropriate allocation. Asset revitalization planning for the plant area will be temporarily concluded, and recovered funds will be invested in strategic and future development projects to support continued transformation and new business deployment.
NT$19.7 Billion Hwaya Plant Sale to Quanta Falls Through
Meanwhile, AUO's original plan to sell its Hwaya Plant to Quanta for NT$19.7 billion has been formally terminated. The case was approved by the board on July 28 this year, covering the Hwaya Plant real estate and related facility ancillary facilities, with an estimated disposal gain of approximately NT$13.39 billion at the time. After multiple negotiations, the two parties failed to reach consensus on plant specifications and delivery schedule, and therefore decided to terminate the deal. AUO emphasized that the gain had not yet been recognized, the termination involves no actual loss of an equivalent amount, and there is no impact on the company's finances or operations. It will continue to seek suitable buyers, with the completion schedule of the Taichung Plant transaction and a new buyer for the Hwaya Plant as key market focuses.