AU Optronics (AUO) Decrease CAPEX to NT$100 Billion

AU Optronics (AUO) originally planned a CAPEX of NT$130 to NT$140 billion for CY2008. According to the company’s president L.J. Chen, AUO will be decreasing it to NT$100 billion. The main reason for the decline is the company’s changed plans for its G7.5 TFT LCD fabrication plant. The G7.5 fab is currently in Phase I with a total glass substrate input capacity of 30,000 per month. Mass production from its G7.5 fab will commence in Q3’09. At around the same time, AUO’s G8.5 fab with roughly the same capacity will begin mass production as well. Phase II for the G7.5 fab has been pushed back to 2010. The reasons are understandable: demand for LCD goods, especially LCD TVs, are uncertain and it is anyone’s guess what will happen in Q4’08. CAPEX in 2009 is expected to be less than NT$100 billion but depends on how the global economy fairs next year.

Source: DigiTimes

[tags]AU Optronics, AUO, Display Manufacturer, LCD Manufacturer, G7.5, G8.5, LCD TV[/tags]

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