AU Optronics plans to build 10G flat panel plants

Aug. 21, 2009 (China Knowledge) - Taiwan-based AU Optronics Corp, the world's third-largest liquid crystal display maker by revenue, plans to invest NT$400 billion in building tenth-generation plants, according to a local government official in Taiwan, Taipei Times reported.

AU Optronics plans to build four flat panel plants, which are likely to be located in Changhua County. Each plant is estimated to cost NT$100 billion and is designed to have a monthly capacity of 60,000 sheets.

The construction of the plants has been postponed to the end of 2010 due to the economic slowdown, said the report.

Meanwhile, the project is still subject to the approval from relevant regulators in Taiwan.

Moreover, the firm raised its capital expenditure to NT$75 billion this year as part of the move for capacity expansion. AU Optronics hopes to resume construction of its second 8.5-generation flat-panel production line and expects the new 8.5-generation production line to be operational by the end of next year.

AU Optronics posted NT$6.6 billion in net loss for the second quarter of this year, compared with NT$20.2 billion in net loss the firm made in a quarter earlier.