The supply-demand imbalance of LCD panels is steadily easing, and the prospects of the panel industry are moving upward, according to Paul Peng, chairman of AUO (formerly known at AU Optronics).
Peng said that he believes the industry outlook will continue to improve, with the performance in the second half of the year to be better than that of the first half.
However, Peng noted that the risk of high inflation has not really eased, and supply-demand imbalances still exist in many industry sectors. He believes the inflation will come down should the war between Russia and Ukraine be relieved and the global financial order restored.
Although market reports indicate that more regional banks in the US and Europe may face some issues following the fallouts of Silicon Valley Bank and Credit Suisse, Peng said the financial woes at related banking institutions have not had much impact.
Meanwhile, Peng noted that the ongoing development of short supply chains to replace the previous long ones will continue if the conflict between China and the US is not alleviated.
Regarding AUO's overseas investment projects, Peng revealed that the company's new plant in Vietnam is likely to kickstart mass production in the second half of 2024.
However, the company has yet to decide on a location for its planned new production site in North America, Peng said, noting that a decision will be made this year and will prioritize choosing a place close to the proximity of downstream customers and with convenient transportation.
Article translated by Steve Shen
