Asia Express - Display
AUO: LCD Panel Oversupply to Continue in 2016
October 28, 2015

AUO has revised downwards the growth of panel demand by surface area in 2015 to 3%~5%, and said that the oversupply of LCD panels will remain unsolved in 2016, reported Commercial Times on October 28. Due to the coming Olympic Games next year, LCD TV shipments will remain robust, with large-screen products continuing to be the mainstream. However, panel demand for PCs and tablets are anticipated to fall further. Overall, LCD panel demand by surface area is projected to grow 4% to 6% while supply will grow 6% to 7%, said the company. Meanwhile, AUO's 6-generation LTPS (Low Temperature Poly-silicon) plant in Kunshan, China, is slated to begin volume production in 2H16 while its 8.5-generation plant in Houli, Taiwan, will begin operation in 1Q16. The company's Capex will reach NT$40 billion (US$1.2 billion; US$1=NT$32.5) in 2016.