Innolux's automotive subsidiary, CarUX Technology, agreed to acquire Japan's Pioneer for JPY163.6 billion (approx. US$1.03 billion) from private equity firm EQT, marking Taiwan's largest automotive technology deal.
The acquisition would double CarUX's revenue scale and create a comprehensive smart cockpit platform combining Pioneer's audio expertise with CarUX's display technologies. Pioneer generated about JPY240 billion in fiscal 2023 revenue and maintains partnerships with major Japanese and global automakers.
Jim Hung, Innolux chairman and CEO, said the deal provides strategic access to Japanese automaker supply chains previously difficult to penetrate. Pioneer's automotive audio and human-machine interface software capabilities complement CarUX's display and touch technologies, creating integrated cockpit solutions.
The transaction requires international regulatory approval and customary closing conditions, typically taking three to six months. Innolux plans to fund the acquisition primarily through bank loans, according to Hung.
Industry observers questioned the funding source and integration management for the unexpectedly large deal. At NT$33.7 billion (US$1.03 billion), the acquisition exceeds AUO's BHTC purchase by more than double.
Discussions began in the second quarter of 2025, with rapid progress facilitated by Pioneer's delisting from the Tokyo Stock Exchange six years ago and subsequent restructuring under EQT ownership. The private equity period resulted in improved governance and operations, motivating Innolux's decision.
Pioneer, known for audio products, also has strong positioning in vehicle displays and instrument clusters within Japanese supply chains. CarUX holds solid footing in European and American premium markets, creating what Hung called "a powerful alliance."
The merger aims for value creation beyond simply adding customers and capacity. Combined operations would offer automakers more diversified one-stop solutions across regions, customer bases, and product lines.
CarUX plans a US listing but only after completing the Pioneer acquisition. The deal's success hinges on complex cross-border integration, presenting management challenges for Hung, who currently serves multiple roles across Innolux Group and CarUX amid recent executive departures.
Article edited by Jack Wu
