To provide closer services to customers and to develop the emerging market, AUO Corporation ("AUO" or the "Company") (TAIEX: 2409; NYSE: AUO) today announced to establish a joint venture of LCD module plant with TPV Technology Limited, being the world's largest ODM LCD TV maker, in Manaus, Brazil for panel module assembly and sales business. If the investment plan is approved by the relevant regulatory authorities, the joint venture will be the first project for AUO to advance into the emerging market with its strategic partner. It also demonstrates the new business model of supplying the international brand customer from the local plant. Meanwhile, this JV is the first production base in America for AUO to offer customer in-time services and support after establishing manufacturing sites in Europe.
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The joint venture company is set up on the basis of the strategic alliance of combining TPV's well-branded image and business infrastructure in the South American market and the strength of AUO's leading technology in TV panels to maximize each other's competitiveness. The joint venture will be named “Brivictory Indústria de Eletr?nicos Ltda”with the capital of US$ 16 million. AUO and TPV will own 19% and 81% of the shareholding of the joint venture company, respectively. AUO and TPV will contribute the capital investment proportionally.
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Brazil is named as one of the countries of BRIC (Brazil, Russia, India and China). It is the largest country in South America and the world's fifth largest country both by geography and by population. Since the 2014 FIFA World Cup and 2016 Olympic Games are scheduled to take place in Brazil, it is expected to boost the LCD TV market locally. AUO will continue providing customers value added services including advancing towards the emerging markets. Besides the collaboration in March 2010 that AUO and TPV established a joint venture of TFT-LCD module production and TV-set ODM, AUO has formed an alliance with TPV again for enhancing its strategic position in the American market and bringing both long-term benefits.