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AUO next-gen LCD plant to go online in 2009

Posted: 30 Oct 2007 ?? ?Print Version ?Bookmark and Share

Keywords:next-generation LCD plant? LCD panels?

LCD manufacturer AU Optronics Corp. (AUO) aims to get its planned next-generation LCD plant online in the second half of 2009, starting with production of 50- to 60-inch panels, reported Reuters.

AUO plans to establish a next-generation LCD plant to meet new demand for the growing segment of flat TVs. The company is yet to decide the technology it will use to make panels by year-end.

Based on the report, AUO CEO H.B. Chen said that they intend to capitalize on the growing market for LCDs and that they are doing their homework "to learn how that capacity will be consumed."

Reportedly, that the plant will lift capital spending in 2008 "somewhat" from the current forecast of $2.8 billion but this will not affect the company's target of 15 percent return on equity consistently, said Chen in the report.

Chen added AUO will cut its overall cost structure by up to 20 percent per unit by lowering material costs.

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