AUO Plans to Go Downstream to Assemble LCD-TVs

Taipei, Sept. 25, 2008 (CENS)--AU Optronics Corp. (AUO), the largest thin film transistor-liquid crystal display (TFT-LCD) panel manufacturer in Taiwan, plans to go downstream to assemble monitors and might merge affiliated Qisda Corp.'s LCD TV division, according to local Chinese-language economic daily newspaper Economic Daily News (EDN).

AUO recently said that it is evaluating various types of partnerships with Qisda, an EMS (electronics manufacturing services) provider spun off from the manufacturing division of BenQ Corp., but would not offer details before the two boards meet for final decisions.

Industry sources said that AUO is emulating Innolux Display Corp., a subsidiary of the Hon Hai Group that produces both TFT-LCD panels and assembled LCD TVs and monitors.

Industry analysts pointed out the current trend to integrate downstream in the global LCD industry, with the latest example being Suzhou Raken Technology Ltd., a joint venture between LG Display (formerly LG.Philips LCD Co., Ltd.) of South Korea and AmTRAN Technology, Co. Ltd. of Taiwan to produce both TFT-LCD panels and assembled LCD TVs. In addition, Chi Mei Optoelectronics Corp. (CMO), the second-largest TFT-LCD panel maker in Taiwan, has also tied up with TPV Technology Ltd., the world's largest monitor maker, by commissioning the latter to contract assemble CHIMEI brand LCD monitors.