What They Say
Digitimes reported that AUO has decided to set up a new 8.5G fab at the Central Taiwan Science Park (CTSP) in Taichung city that will be built to feature green buildings and strict carbon emission standards. The investment level will be from $3.5-$5.3 billion to make a-Si and LTPS LCDs as well as microLED, with production from 2025. The carbon emissions will be 30% less than current AUO plants.
What We Think
AUO has done a good job to move much of its business away from mainstream volume markets over recent years to focus on higher end value added products. It still has no real presence in larger OLED supply, so it needs some other competitive area and that is microLED. The firm has shown a lot of R&D projects on microLED. The firm also recently increased its shareholding in the Ennostar, the Epistar/Lextar subsidiary that is working on miniLED and microLED technology. AUO subscribed to 67.25 million of 70 million shares in a rights issue to fund a 6″ Micro LED wafer fab and purchasing equipment for epitaxy and chip fabrication. Innolux took the smaller balance of shares. (BR)
In recent years, AUO has chased added value and profit rather than just volume and market share. Source:AUO
