09 years into the production of the eight generation LCD panel factory

Vice chairman of Taiwan China photoelectric LCD panel maker's chief executive HB Chen said at an investor conference:

Company to build the next generation of liquid crystal panel eighth generation factory before the end of this year will be finalized. At the same time, AU Optronics conducted an evaluation of the supply and demand trend of global large size LCD panel during the period from 2008 to 2009.

The company said, we pay close attention to the 50 inch TV market demand, although the first half of this year the main global LCD TV manufacturers in the LCD TV 50 inches of the level of positive expansion. But on the whole still AUO scheme was evaluated. If the company decided to build eighth factories, scheduled in 2009 to begin production in the second half of 2010, the new plant will make a significant contribution to the company's profits.

AUO said, in order to expand production capacity, from 2007 to 2008 the company's overall capital expenditure will reach NT $160 billion ($5 billion 900 million). The increase in capital expenditure does not include funding for the next generation of plants.

According to AUO vice president and chief financial officer Max Cheng said, the first 7.5 generation glass substrate plant monthly production company in 2008 from 60 thousand at the end of this year growth to 75 thousand, the six generation line monthly production capacity from 90 thousand pieces of current growth to 128 thousand.

AUO new president LJ Chen said, the next two years the global large-size LCD panel supply will be tight, in 2008 and 2009, the global large-size LCD panel demand will increase 28% and 25% respectively. While in 2008 and in 2009 the global size of the entire lcd panel production capacity increased by only 20-21% and 18-20%.

In the fourth quarter of this year the company prospects, senior vice president David Su said that in the North American market, channel distributors and retailers inventory cycle lower than the same period last year to two a week, European LCD TV inventory cycle also has maintained a relatively low level. So the company is optimistic about the prospects for the fourth quarter of this year.