AUO : Kunshan Gen 6 LTPS Fab Phase 2 Production Commences, Aiming to Accelerate Production in Advanced Value-Added Products and Smart Mobility Applications

AUO Corporation ("AUO" or the "Company") today announced its Phase 2 production launch of the sixth-generation (Gen 6) LTPS (Low-Temperature Polycrystalline Silicon) LCD (Liquid Crystal Panel) fab in Kunshan, with a monthly total production capacity exceeding over 40,000 glass substrates, providing the Company additional operational and growth momentum. In 2016, AUO Kunshan Fab Phase 1 was the first completed and operational Gen 6 LTPS fab in China, reaching its full capacity in 2017. In response to the rapid development of high-end products worldwide, and the continued expansion of customer and market demands, AUO initiated its Kunshan fab capacity expansion plan. In the future, the Company will accelerate its investments in high-end notebooks, low-carbon energy-saving and automotive displays, and other value-added niche products to comprehensively enhance product competiveness, expand product market share, and focus on advancing the Company's Biaxial Transformation Strategy goals of elevating high-value-added display technology, Go Premium, and deepening the vertical market applications, Go Vertical.

"Kunshan possesses exceptional development advantages, and the cohesion of a complete optoelectronic industry chain with advanced display technology at its core, makes it the crucial growth and development base for AUO." Said Dr. Frank Ko, Chief Executive Officer and President of AUO. "The establishment of this Gen 6 LTPS production line enables AUO to lead the industrial layout of high-quality production capacity, allowing us to secure a strong market position in products such as mobile phones, notebooks, and automotive, gaining the trust and recognition of global brand customers. We have high expatiations of leveraging the Company's robust display technology as a foundation in Kunshan's development advantage within the optoelectronic, new energy automotive ecosystem. This proactive approach aligns with industry trends, expand our possibilities in various application fields, and positions us to illuminate an innovative and sustainable future for the display industry."

AUO's LTPS Notebook Display Panel Lead the Global Market, and is Accelerating the Expansion into Low-Carbon, Energy-Saving Automotive Products AUO operates three manufacturing facilities in China, with the Kunshan fab serving as its front-end panel production facility and a core development hub for the Company's global expansion of LTPS panels. AUO has longstanding commitment to LTPS panel technology research and development. Leveraging its advanced and integrated technological advantages, including ultra-high resolution, free-form design, high screen-to-body ratio, lightweight build, and energy efficiency, the Company's products primarily covers smartphones, notebooks, and automotive displays. Notably, AUO's LTPS notebook panels hold the top (*) global market share, maintaining a leading position in this segment. Furthermore, AUO's Kunshan fab manufactures LTPS gaming notebook panels with an ultra-high refresh rate of 520Hz and an ultra-high pixel density of 540 PPI. This continuous innovation in high-end gaming applications enhance users and gamers worldwide with smoother gaming visual experiences. Additionally, the energy-efficient and low-power features of LTPS panels contribute to achieving green product energy-saving and carbon reduction standards, aligning with the United Nations Sustainable Development Goal 12 on responsible consumption and production, meeting international clients' standards and demands for green products. Considering the thriving global electric vehicle (EV) industry, AUO Kunshan not only possesses solid technological foundations in large-size bonding, free-form cutting, touch display integration but also capitalizes on the energy-efficient characteristics of LTPS panels, meeting the demand for green, energy-saving features in EVs, holding significant potential for development for in-vehicle applications. AUO aspires to leverage high-end displays as its core technology, actively leading cutting-edge technology development to meet the diverse requirements of automotive products. Simultaneously, the Company seeks to deepen cooperation and integration within the Kunshan new energy automotive ecosystem, continuously investing in the developments of smart mobility solutions. This aims to closely align with user in-vehicle needs and experiences, creating an immersive, personalized smart living and entertainment space for drivers and passengers, and positioning AUO as a leading supplier of global smart mobility solutions. AUO Kunshan 5G Smart Factory, Driving Production and Energy Efficiency through Smart Manufacturing AUO Kunshan fab is the first Gen 6 LTPS panel production line and the largest LTPS LCD manufacturing facility established in China in terms of production capacity. As a pioneer in the global display manufacturing industry, the AUO Kunshan aims to create an efficient 5G smart factory that encompasses across various aspects, including manufacturing execution systems (MES), automation control systems, product verification systems, and inventory management systems, to apply 5G technology to the industrial internet smart factory domain. Furthermore, establishing energy data collection, monitoring, and control systems to comprehensively monitor and optimize energy efficiency. Through the deployment of fully automated material transportation systems, unmanned material delivery is achieved. By building a 5G smart manufacturing factory, AUO Kunshan fab has achieved 30% enhancement in production efficiency, 17% increase in yield, 40% reduction in energy consumption, and a 21% decrease in operating costs. This smart initiative represents a significant upgrade in smart manufacturing capabilities. AUO Kunshan Establishes Rooftop Solar Power Plant, Pioneering Energy Efficiency, Water Conservation, and Carbon Reduction for a Sustainable Future Enhancing the utilization of green energy is a crucial mission of AUO's sustainability efforts. From the early stages of the Kunshan fab construction, AUO has long designed its rooftop solar power plant. By 2017, its annual electricity generation had reached 5 million kWh (million kilowatt-hours), meeting the fab's non-production electricity needs and embodying the practice of self-sufficiency in green energy. As of 2023, the total rooftop solar panel covered area at AUO Kunshan has expanded over 230,000 square meters, adding an additional 18 million kWh of annual electricity production. The total electricity generation across the entire facility reaches 23 million kWh, accounting for approximately 6% of AUO Kunshan's total annual electricity consumption. This is equivalent to the annual electricity usage of 10,000 households in Kunshan, and can also be translated as an equivalent reduction in standard coal consumption of 3,000 tons, and a decrease in carbon dioxide emissions 16,800 tons per year. In addition to generating green energy, AUO Kunshan has been consistently implementing energy-saving and emission reduction measures throughout its production and operations. Currently, the annual energy savings of AUO Kunshan have reached 9.94 million kWh, with a cumulative energy savings exceeding 60 million kWh. Regarding water conservation, the facility has implemented a comprehensive water-conservation system. After wastewater is purified and filtered, it is recycled and reused for production. Presently, the wastewater recycling rate has reached 95%, resulting in an annual water conservation of nearly 6.76 million tons and a substantial reduction of wastewater treatment volume, aligning with the goals of recycling and clean production. AUO remains committed to product development and technological innovation. In addition to the expansion plans in China's Kunshan manufacturing facility to enhance the production layout for high-end and automotive products, the Company continues to invest in and expand its presence in Taiwan, including the construction of high-quality production capacity, the implementation of advanced smart production lines, and investment in the research and development of high-value-added products and advanced technologies. For three consecutive years, AUO has invested over NTD 30 billion annually in Taiwan, accumulating substantial strength in innovation. AUO's achievements in research and development have garnered international recognition, consistently ranking among the top three companies in Taiwan for patent applications. The Company has been acknowledged as top 100 global innovators by Clarivate and LexisNexis. With a global footprint of high-quality production capacity, AUO continues to extend advanced display technologies into diverse application fields, providing strong momentum for its biaxial transformation strategy. *Based on the available market research information as of November 17, 2023.

AUO announced its Phase 2 production launch of the Gen 6 LTPS LCD fab in Kunshan, providing the Company additional operational and growth momentum AUO Kunshan drives production and energy efficiency through smart manufacturing, and establishes rooftop solar power plants, reaching a total electricity generation of 23 million kWh AUO's Kunshan fab manufactures LTPS gaming notebook panels with an ultra-high refresh rate of 520Hz, continuously delivering innovative breakthroughs in high-end gaming products