adlink chairman faces insider trading probe after auo deal
taipei, Tuesday, 19 August 2025.
taiwanese authorities have launched an investigation into adlink’s chairman and eight others for alleged insider trading. this follows auo’s acquisition of adlink at a premium. the probe centers on illicit profits potentially gained from advance knowledge of the deal. searches were conducted at 13 locations. those investigated include relatives, engineers, and shareholders. adlink’s chairman allegedly leaked information to relatives. the engineer was taken into custody for questioning. the investigation raises questions about corporate governance within taiwan’s tech industry.
Investigation details
The Taipei District Prosecutors Office initiated the investigation on August 18, 2025, targeting alleged violations of the Securities Exchange Act, Article 171, Paragraph 1, Clause 1 [1][2][3]. This law addresses insider trading. Authorities searched 13 locations, including residences and offices, and questioned nine suspects and two witnesses [1][3]. The focus is on potential illegal trading activities linked to AUO’s acquisition of Adlink shares [1]. The investigation aims to determine if individuals exploited non-public information for personal gain [2].
Individuals under scrutiny
Those implicated in the investigation include relatives of Adlink’s chairman, an engineer, and a shareholder [1]. Adlink’s chairman, surnamed Liu, is suspected of leaking the acquisition news to relatives, who then used family accounts to trade Adlink shares [1]. The engineer, surnamed Yang, has been taken into custody for questioning [1]. These individuals allegedly profited over NT$1 million each from trading activities prior to the public announcement [1][2].
Background of the acquisition
In 2020, AUO (友達光電) announced a public offering to acquire between 5% and 30% of Adlink (凌華科技) shares at a price of NT$57 per share [1][3]. This acquisition aimed to expand AUO’s reach into the industrial computer sector [3]. The offer represented a premium of approximately 20% over Adlink’s average share price at the time [2]. The announcement of the acquisition led to a surge in Adlink’s stock value [2]. The current investigation is centered around trading activities that occurred before this announcement [1].
Potential market impact
The insider trading investigation could negatively impact investor confidence in both Adlink and the broader Taiwanese tech sector [1]. Such allegations can lead to increased scrutiny of corporate governance practices and potentially deter investment [1][alert! ‘Investor confidence is assumed to decrease, however this is not explicitly mentioned in the text’]. The investigation’s outcome and any subsequent legal actions could influence Adlink’s stock performance and its relationships with other companies [alert! ‘The investigation’s outcome is assumed to influence Adlink’s stock performance, however this is not explicitly mentioned in the text’]. Investors will be closely monitoring developments as the investigation progresses [1].