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AUO, Gallant Precision to Partner on Photovoltaic Market

2009/02/11 | By Ken Liu

Taipei, Feb. 11, 2009 (CENS)--LCD-panel maker AU Optronics(AUO) Corp. is said to enter into production of Copper Indium Gallium Diselenide (CIGS) solar cells in cooperation with subsidiary Gallant Precision Machining (GPM) Co., Ltd., which specializes in components and molds for precision machines.

In response to the reports, AUO's spokespersons said the company opened an in-house solar-energy office late last year, but the company has yet to decide which solar technology to adopt and which partner to cooperate. Clear roadmap about the company's solar-energy plan, they said, will be released sometime in the second half this year.

AUO, currently Taiwan's No.1 LCD maker, is internally assessing the plan to diversify into production of thin-film solar cells capable of converting over 10% of sunlight into electrical power. Industry watchers said the company would choose between CIGS and a-Si material for its solar-cell production from the considered conversion ratio. Also, they estimate the company would set output at 30-50 megawatts of cells in the initial stage.

Insiders of Taiwan's solar-energy industry said AUO is assessing plans to work with GPM on the new business, with GPM estimated to help AUO tool up production equipment and offer consultancy on equipment know-how. GPM has successfully developed equipment for making silicon-based solar products and has introduced Taiwan's first homegrown turnkey equipment for making solar cells in the fourth quarter last year. Over half of its process and automated equipment have passed verifications at customers.

After scoring achievements in silicon-based solar equipment, the equipment supplier is intensively working on plans to enter into thin-film equipment segment. LCD manufacturing process is much close to that of thin-film solar-cell production, a strong incentive luring LCD makers like AUO to seek a paydirt in the energy sector at a time when LCD market is losing money.

AUO's primary LCD rival at home, Chi Mei Optoelectronics Corp., is moving quicker to enter solar-energy business, planning pilot production of its first line sometime this quarter and volume production in third quarter this year.

Industry watchers believe GPM can boost AUO's competitiveness in its solar plan as locally made solar equipment usually proves a markdown of 20% as compared with imported machines.