Taiwanese display maker AUO is closing its production facility in Singapore by the end of December 2022, affecting up to 500 employees, according to Nikkei. AUO is moving production equipment from Singapore back to Taiwan as it faces declining demand for LCD screens. The company is also expanding capacity in Vietnam for display modules.
The closure highlights the industry headwinds for LCDs for some manufacturers faced with the dominance of Chinese manufacturers. The LCD industry has faced overcapacity and production underutilization since mid-2022.
Most of the moved equipment will go to AUO’s plant in Taoyuan, Taiwan focused on advanced MicroLED technology. AUO supplies displays to major PC and automotive companies globally. In Singapore, the nearly 500 employees are mostly local hires and their contracts will be terminated with the closure. The company says the Singapore facility will remain a Southeast Asia hub for smart solutions and services.
As LCD demand drops, AUO is refocusing on next-generation displays like MicroLEDs and expanding in the auto sector, including a recent acquisition of a German automotive technology company.
