AU Optronics (AUO) will start volume production of 65-inch LCD panels in the third quarter, with the company expecting stronger demand from the public information display (PID) segment than from the TV sector, according to company president LJ Chen.
AUO is already running trial production of 65-inch panels, which can be adopted for airport billboards and other PIDs, Chen said.
He said demand for the 65-inch panels for PID applications is expected to be very strong, as many clients are already eagerly inquiring about them even before the start of volume production, he said.
Demand for 40-50-inch PID applications currently is also very strong, with clients mostly coming from overseas, Chen said. AUO expects strong growth for the PID market, and the company will see over 20% growth for its PID segment every year, he added.
Commenting on the current weak demand in the LCD panel market, Chen said the seasonal downturn during the second quarter is coming within a range that AUO predicted.
The second quarter will be worse than the first quarter but it will also be the worst period of the year, after which demand will start picking up in July, and significant growth will be seen in August and September to return the market to usual high-season levels, the AUO executive said.
For the entire 2008, AUO expects a 45:55 ratio for its PC applications between the first and second halves of the year, and a 40:60 ratio for the TV segment, he said, adding the seasonal effect on the TV market is usually stronger.
AUO 65-inch panel
Photo: Rodney Chan, Digitimes
Article translated by Rodney Chan
