AUO (TPE:2409) and Innolux (TPE:3481) expect between 12% to 20% of their display business to be hit by looming US tariffs, forcing them to shift production destinations, Taipei Times reported Wednesday.

AUO estimates a $200 million revenue impact and plans to shift production to countries with lower tariff exposure, reportedly.

Both firms ruled out building full-scale display fabs in the US, citing high labor costs and lack of supply chain infrastructure. Innolux, with higher US exposure due to direct vehicle and TV display shipments, is tightening supply chain control to manage risks, the report said.

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