AU Optronics, Chunghwa Picture Tubes Slow New Fab Investments

AU Optronics (AUO) and Chunghwa Picture Tubes (CPT) have decided to slow investments toward new fabs in Taiwan. AUO originally planned to invest NT$400 billion (about US$12 billion) but has trimmed that number down to NT$254 billion. CPT will reduce the number of new LCD fabs from four plants to just two in Taiwan.

We are entering a phase in the LCD industry where capacity growth will slow. This will in turn mean that price declines will also slow down. With LCD TVs expected to grow to about 70 million units in 2007, there will need to be adjustments in the forecast.

Source: Reuters

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