It was formed in September 2001 by the merger of Acer Display Technology, Inc. (the predecessor of AUO, established in 1996) and Unipac Optoelectronics Corporation.

AUO offers display panels, and in recent years expanded its business to smart retail, smart transportation, general health, solar energy, circular economy and smart manufacturing service.

[citation needed] In September 2012, AUO was sentenced to pay a US$500 million criminal fine for its participation in a five-year conspiracy to fix the prices of thin-film transistor LCD panels sold worldwide.

[4] The two executives were sentenced to prison and fined for their roles in the conspiracy.

In July 2014, the Ninth Circuit rejected AUO's appeal of the fine.