TFT LCD panel maker AU Optronics (AUO) has taken more than 30% of US-based SiPix Imaging, becoming the biggest shareholder of the e-paper specialist.
Two AUO subsidiaries Konly Venture and Ronly Venture have acquired a total of 60 million, or 31.58%, of SiPix's shares for a total of US$30 million, according to the panel maker's statements with the Taiwan Stock Exchange (TSE) on March 2.
SiPix founder and chairman CS Ho is expected to retire, industry sources said, adding AUO plans to appoint its senior VP and general manager of consumer product display business group CT Liu to take his place, and Ho's son to be CEO.
AUO and SiPix declined to comment on possible reshuffle of the e-paper specialist's management.
AUO started to deploy its resources to develop electrophoretic displays (EPDs) in the second half of 2008, and the investment in SiPix will help it secure supply of EPD materials, the sources explained.
According to AUO's development roadmap, the company expects to start EPD mass production this year and introduce flexible e-paper with a plastic substrate by 2010.
Global shipments of e-paper displays are expected to reach 3.6 million units this year and rise to 18.3 million units in 2012, according to research firm iSuppli. Revenues for global e-paper displays are forecast to reach US$291.2 million by 2012, rising at a compound annual growth rate (CAGR) of 143% from US$3.5 million in 2007.
Article translated by Yvonne Yu
