AU Optronics Corp (AUO, 友達光電), the nation’s biggest liquid-crystal-display (LCD) panel maker, said yesterday no drastic price change is in sight as demand would exceed supply this year as expected.
In addition, TV sales in China — an indicator for the LCD industry — looked good during the Lunar New Year holidays, AU Optronics chief executive Chen Lai-juh (陳來助) told a media briefing.
Chen’s comments came amid growing concern that panel prices could start falling again next month given speculation of slower-than-expected sales of slim-screen TVs in China during the Lunar New Year holidays.
“We are seeing some interesting trends in the Chinese market ... These major trends will have a positive impact on the industry,” Chen said, citing faster replacement demand for flat-panel TV sets in China, faster migration to bigger-screen TVs, such as 37-inch and 42-inch TV sets, and strong demand for LED TV sets.
“It is too early to comment on the market demand now ... We need more information” Chen said. “The big trends will not change overnight.”
LCD panel demand was expected to grow by about 24 percent this year from last year, exceeding an anticipated 21 percent growth by area, Chen said.
It would be unlikely to see dramatic changes in panel price, Chen said.
Rather, it would be normal to see slight fluctuations matching the regular seasonal pattern.
“It will be a healthy to see a slow second quarter,” Chen said.
Separately, Chen said AU Optronics would be aggressive in building Chinese plants and would submit an investment proposal as soon as the government made an official announcement about expanding cross-strait investment for the industry.
“AU Optronics is qualified [to build a Chinese plant] because we are ramping our first 8.5-generation plant and will soon start production at the second one,” Chen said.
The Ministry of Economic Affairs’ Investment Commission is scheduled to make an official announcement today that China-bound restrictions on local flat-panel makers will be eased.
This means that companies could submit their investment proposals to the government as soon as next week.
Panel makers will be allowed to build advanced plants to make TV panels in China as long as they promised to keep the most advanced technologies in Taiwan and to commit to more investment at home.
That would make it possible for AU Optronics to build a 7.5-generation factory in China, Chen said.
The company has also “set up a special task force studying the possibility of building a 10th, or 11th-generation plant,” Chen said.
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