AUO builds 7.5 generation panel factory

TAIPEI, April 19: According to Hsiung Huei, vice president of AU Optronics, the largest TFT-LCD panel manufacturer in Taiwan, the company is expected to introduce its 7.5th generation (7.5G) panel factory plan.

Hsiung disclosed the news at a panel seminar in Taiwan a few days ago. He claimed that AUO’s goal was to take third place in the global share of the market. At this seminar, a representative of Chunghwa Picture Tubes, Taiwan’s third largest manufacturer of TFT-LCD panels, pointed out that Korean competitors have greater advantages than Taiwanese manufacturers, and they are still able to maintain their profits in the competition for price cuts. Some equipment suppliers said that because Taiwan’s second-largest TFT-LCD panel maker CMO has encountered many problems in its production process and equipment manufacturing, it is expected that AUO will use its general specifications to produce 7.5-generation substrates in its new plant.

Hsiung cited figures from DisplaySearch, a market research firm, that AUO’s global market share in the past three years was 12.1%, 11.8%, and 13.5%, respectively. He also claimed that AUO's global market share will further increase in the coming years. Hsiung declined to disclose the specifications of the substrate produced by the new AUO plant. But industry sources say that 7.5-generation substrate sizes have been developed, including Samsung’s 18, 70 X 2, 200mm and LG. Philips LCD 1,950 X 2,250mm. The source also stated that AUO’s 7.5-generation substrate specifications will not exceed this range.

AUO is scheduled to announce the details of the 7.5-generation factory at a shareholder meeting to be held on April 26. The company’s capital expenditure this year is expected to reach a record level, with investment of NT$70 billion (US$2.22 billion) and NT$80 billion (US$2.53 billion).