It is reported that as oversupply in 2019 may become a normal situation, global panel manufacturers will adopt different methods in strategy, market and product development to cope with this trend, and business performance will undergo great changes.
Paul Peng, chairman of AU Optronics, said that the supply and demand ratio of flat panels in 2018 is about 106-107%, which is relatively stable. However, due to the investment in new capacity, the supply and demand situation will change in 2019.
In the face of this upcoming challenge, AUO will be able to find the best business model and increase its competitiveness through differences in technology, management and product development to continue to achieve profitability.
With smart investment strategies for capacity expansion and focus on high-end custom niche segments, AUO has achieved full operation in the past 3-4 years.
Compared with the rapid expansion of competitors (especially competitors in mainland China), AUO carried out the second phase of the 8B (8.5G) plant expansion in central Taiwan in the first half of 2018.
The second phase of the plant has a monthly capacity of 25,000-30,000 substrates and has reached full capacity in the third quarter of 2018, producing 43-inch, 55-inch and 65-inch TV panels. The second phase of the expansion and expansion project also enabled the total capacity of the 8B plant to reach more than 100,000 substrates per month.
Although OLED panels currently account for a certain percentage of the mobile phone panel market, Peng said that OLED TVs will remain a niche market in the next few years, and the market ratio will gradually increase from the current 1% to around 5%. Due to the high cost performance of LCD panels, LCD technology will become the mainstream technology for future IT and TV panels.