AUO to increase production capacity at Taiwan 8.5G facilities
Rebecca Kuo, Tainan; Alex Wolfgram, DIGITIMES [Friday 30 January 2015]
AU Optronics (AUO) will increase monthly production capacity at its 8.5G facilities in Houli, Taiwan by 25,000-30,000 substrates a month, which will fully roll out in 2016, according to company president Paul Peng.
The increase is expected to add 5% to AUO's overall production capacity.
Peng emphasized that AUO is more concerned about profitability and will not expand production facilities simply to gain higher market share.
However, the president noted that LCD panel surface demand is expected to grow 8% globally in 2015 but that production capacity is only expected to grow 5%. Peng believes this will help the panel industry see healthy results during the year and that AUO's move will help the company maintain profits.
AUO will allocate NT$40 billion in capital expenditures throughout 2015-2016, which will be used for production capacity expansion at the Houli 8.5G facilities in addition to new capacity at the company's operations in Kunshan, China.
Peng affirmed that AUO's strategy has been successful in recent years as the company is remaining profitable due to production of Ultra HD TV panels, curved TV panels, high-resolution small- to medium-size panels, a-Si technology in addition to various touch solutions
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