AUO 8 billion 800 million yuan to restart the 7.5 generation LCD panel factory plan

Yesterday (27 days), AU Optronics spokesman Xiao Yawen told the "First Financial Daily" the reporter said that the new panel factory last year has started planning, but in the choice of the size of the glass substrate has doubts, in the completed plant after suspended.

Now restart the new plant, mainly due to the global 40 inches or more large screen LCD TV market, and further improve our share of the global LCD market." Xiao Yawen said.

Display authority of the consulting firm Display Search report said AUO over the past three years, the global market share was 12.1%, 11.8%, 13.5%, after Samsung, LG Philips.

LCD TV market

Xiao Yawen said, the company has identified 1950 x 2250 mm substrate specification development, a total investment of up to 35 billion new Taiwan dollars (about 8 billion 800 million yuan) (excluding plant investment), early planning, monthly production of 30 thousand pieces, as the future continue to adjust.

Display Search latest report said that in 2005, the global LCD panel plant investment will decline sharply by 26%, about $9 billion 310 million.

"Look at the AUO contrarian investment, but the growing LCD TV market demand will greatly enhance the investment value of the 7.5 generation. At this time to start, just connect the next big screen LCD TV market start-up time."

It is reported that the plant will be installed in the second quarter of next year, the plant is expected to formally put into operation in the fourth quarter.

Xiao Yawen admits that the first quarter's huge loss of 2 billion 129 million yuan is still NT NT $3 billion, but has been far lower than the estimated loss of legal bottom line. Also, compared to NT $4 billion 800 million LG Philips, AUO has been very good."

AUO chief financial officer Zheng Weishun said in response to the new plant construction, the company plans this year for NT $35 billion loan projects, the board of directors and AUO also has proposed shareholders will issue American Depositary Receipts (ADR) for financing.

Mainland five generation line has fallen behind?

AUO to restart the 7.5 generation panel plant, means that in the LCD panel industry, the mainland has been lagging behind two generations in Taiwan area.

Shanghai SVA NEC Strategic Development Department official Jiang Kai told reporters, although from the generation point of view, NEC and SVA are behind the BOE two generation, also not involved in the 40 inch LCD TV panel market, but for now, the size of LCD TV market in the mainland has gradually become the mainstream, there is still a the time of large screen market really started.

At present, our products are mainly concentrated in the display market. In 3 to 5 years, SVA will also panel production line launched high generation."

CCID Consulting Computer and software division, director of the Institute of peripheral devices, said Zhang Tao, the mainland does not intend to invest in higher generation panel factory, but by the two factors of technology and capital decisions. However, the technology behind the two generations does not mean that the five generation line products no market. In fact, even the 3 generation, the 4 generation panel has not been eliminated, but also for the car, mobile phones and other applications in the broader market."