What Display Daily thinks: This is the first day of the rest of the life of AUO as a Tier 1 automotive supplier. It is also the beginning of the end of the company as a display company even if its not the end of the company as a maker of displays.
Automotive and smart mobile is a big niche play. It certainly givee AUO a chance to leverage its display expertise and IP in pursuit of profits and growth on a worldwide scale. Nothing in the display industry would have given the company the same opportunities it now has.
And that’s the key to 2024 for many in the display industry, follow the old adage – get big, get niche, or get out. AUO is getting out by getting niche in a big way. How about that for a trifecta. I like the way it brings everything into focus for AUO and, it even gives hope to future applications of its MicroLED technology. I think that’s going to be a lot of fun to watch,.
AUO Completes Acquisition of BHTC for $650M, Steering into Smart Mobility’s Fast Lane
AUO has completed the acquisition of Behr-Hella Thermocontrol GmbH (BHTC) for €600 million ($650 million). This transaction transitions AUO from a display panel manufacturer to a technology solutions provider in the smart mobility sector. BHTC, which operates in the climate control and human-machine interface (HMI) markets, was previously a joint venture between Mahle Behr GmbH and Forvia Hella. The sale follows Forvia’s acquisition of Hella, activating a change of control clause in the joint venture agreement. BHTC employs around 3,100 people globally and reported €634 million ($687. million) in sales in 2023.
Paul Peng, Chairman of AUO, noted the merger aims to integrate the strengths of both companies to create synergies and enhance the global automotive supply chain. This move aligns with AUO’s strategic shift towards providing comprehensive smart mobility solutions, expanding its product range beyond display panels by incorporating BHTC’s climate control and HMI systems.
The integration is expected to enhance product diversification, strengthen supply chain resilience, and expand AUO’s global operational footprint. AUO aims to leverage this acquisition to solidify its position as a Tier 1 automotive supplier, increase its engagement with OEMs, and expedite market access. This acquisition is positioned to augment AUO’s revenue from the automotive sector and support its growth in related verticals, emphasizing the company’s evolution towards a broader technological ecosystem in the smart mobility domain.
