AU Optronics (AUO) has increased its capex by 64% to NT$100 billion (US$3.13 billion) for 2010, up from NT$61 billion in 2009.
Up to 85-90% of the capex will mainly go towards expanding 7.5G and 8.5G capacities, with the remaining 10-15% allocated for its solar energy business, according to the company.
AUO is continuing to expand the capacity at its second 7.5G plant, and the overall monthly 7.5G capacity will increase to 130,000 substrates by the end of June 2010, up from 100,000 currently, it said. AUO's second 8.5G plant will start equipment installation in the third quarter and start production in the first quarter of 2011 with an initial monthly capacity of 45,000-50,000 substrates.
LJ Chen, president and CEO of AUO, told an investors conference Thursday (January 28) that global LCD panel area capacity will increase 20-21% in 2010, and AUO expects its panel area capacity to increase 17-18% this year.
Commenting on competition from Chimei Innolux Corporation, Chen said AUO is confident that its technologies for small- to medium-size panels and capacity at 6G and larger plants will provide the advantage to compete against Chimei Innolux.
Chen noted that AUO's 6G and above capacity is 10% higher than that of Chimei Innolux. Chi Mei Optoelectronics (CMO) and Innolux Display are expected to merge April 1 to form Chimei Innolux, according to the companies' latest announcement.
AUO posted a net loss of NT$7.85 billion for the fourth quarter of 2009 as it recognized fines of NT$10 billion it expected to receive from anti-trust lawsuits in the US and Europe, the company explained
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