Yuantai spends 2.78 billion yuan to buy Guanyin Factory and cooperates with Taihong to develop AI high-speed transmission materials

The board of directors of Yuantai Technology (8069), a major electronic paper manufacturer, approved that it will spend 2.78 billion yuan to purchase land and factory buildings in Taoyuan Guanyin Industrial Park from Chunghwa Pulp, plan to set up a large-size electronic paper production line, and serve as a trial production and verification base for AI high-speed transmission materials. Yuantai's board of directors also signed a letter of intent for cooperation with Taihong Technology. The two parties will jointly develop and verify polytetrafluoroethylene copper foil substrate (PTFE CCL) materials and lay out the AI ​​high-speed transmission market.

Yuantai pointed out that the Guanyin factory area already has factories and factory facilities that can be renovated and reused, which will facilitate the subsequent setup and maintenance of large-size electronic paper production lines. The factory is close to Yuantai's existing Hsinchu and Linkou factories, which also facilitates personnel exchanges and operation management.

The land area of ​​this transaction is approximately 7973.63 square meters, with a unit price of 257,000 yuan per square meter. The transaction value of buildings and ancillary equipment is 731 million yuan, and the total transaction value is 2.78 billion yuan. The transaction still needs to be approved by the board of directors of Huazhi to take effect.

Li Zhenghao, chairman of Yuantai, said that the Guanyin factory is expected to expand the layout of the electronic paper business, and also allow Yuantai to extend its existing materials and manufacturing technologies to the field of AI high-speed transmission materials. Yuantai is optimistic about the demand for high-end materials driven by the AI ​​industry. It will combine its basic material development, surface treatment and mass production management capabilities with Taihong's R&D experience in copper foil substrates and circuit board materials to accelerate the development and verification of new materials.

According to the letter of intent for cooperation, it is initially planned that Taihong will provide key materials, conduct trial production and verification of the process at Yuantai's Hsinchu and Guanyin factories, and then commission manufacturing and other subsequent cooperation based on progress evaluation. Relevant commercial conditions and implementation details will be negotiated separately by both parties, and the final approved and signed formal contract shall prevail.