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Monday, 17 May 2010 - AU sees LCD shortage, eyes China deals |
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    Edition: U.S. Article Comments (0) Save Email Print Reprints Most Popular Most Shared Iran fuel deal would not fix nuclear issue-France 7:26am EDT Iran says will continue 20 percent enrichment 8:33am EDT Thai troops close in on protest encampment | Video 10:53am EDT Volcanic ash grounds hundreds of European flights | Video 7:22am EDT U.S. stocks down on earnings outlook | Video 11:33am EDT Iran agrees atom fuel deal with Turkey, Brazil 11:44am EDT Factbox: Current sanctions on Iran over nuclear program 7:28am EDT Europe blocks U.S. emergency exit door 16 May 2010 ADHD in kids tied to organophosphate pesticides 10:04am EDT U.S. reverses stance on treaty to regulate arms trade 14 Oct 2009 ADHD in kids tied to organophosphate pesticides 10:04am EDT Apple's iPhone replaces BlackBerry for some bankers 8:35am EDT U.S. reverses stance on treaty to regulate arms trade 14 Oct 2009 Thai troops close in on protest encampment | Video 10:53am EDT Iran says will continue 20 percent enrichment 8:33am EDT Exclusive: Waddell is mystery trader in market plunge 14 May 2010 Iran agrees atom fuel deal with Turkey, Brazil 11:44am EDT WHO study has no clear answer on phones and cancer 16 May 2010 UPDATE 1-WHO study has no clear answer on phones and cancer 16 May 2010 U.N. to pick Costa Rican as new climate chief: sources 9:44am EDT AU sees LCD shortage, eyes China deals Baker Li HSINCHU, Taiwan Mon May 17, 2010 5:44am EDT Related News Samsung says chairman Lee to meet Sony's Stringer 12:19am EDT Taiwan's Chi Mei Innolux plans new share issue Thu, May 13 2010 Taiwan's TSMC posts stronger April sales Mon, May 10 2010 LG Elec eyes selling flat TV in Japan again - Nikkei Sun, May 9 2010 Simplo sees higher sales, China expansion Mon, May 3 2010 A woman walks past an Au Optronics LCD monitor at the company's headquarters in Hsinchu May 17, 2010. AU Optronics Corp, Taiwan's No. 2 LCD maker, said an LCD panel shortage is likely to last into the second half of this year on robust demand for PCs and TVs, even though fears linger about a weak euro. Credit: Reuters/Nicky Loh HSINCHU, Taiwan (Reuters) May 17 - AU Optronics Corp, Taiwan's No. 2 LCD maker, said an LCD panel shortage is likely to last into the second half of this year on robust demand for PCs and TVs, even though fears linger about a weak euro. Technology New laptops and thinner TV models with power-saving LED backlights are selling well worldwide, and AU's early investment in the new technology helps it add value, Chairman K.Y. Lee said on Monday in an interview as part of the Reuters Global Technology Summit. "Clients have requested a large amount (of panels), but we are not able to deliver," Lee, 58, said at the company's headquarters in the Hsinchu science park, Taiwan's high-tech center. "Monitor (panel) is tight, and notebook and especially TV (as well)," said Lee, adding that he sees no impact from a weak euro now. AU returned to profit in the first quarter after strong demand boosted sales and prices of its displays. Major LCD makers in Asia have reported brisk demand recently as economies recover, with China leading the way. However, some analysts say the sector might be saddled with oversupply later this year if display makers aggressively ramp up output. AU has applied to the Taiwan government for approval to set up a new LCD factory in China, with an investment of about $3 billion, as it aims to strengthen its competitiveness in China, which could soon become the world's largest TV consumer. AU, a supplier to brands such as Dell and Sony, expects the Taiwan government to give a go-ahead by the end of the year and it plans to add up to 1,000 new workers in the factory, Lee said. Other LCD rivals, including LG Display of South Korea, also have similar plans to build new plants on the mainland, and relaxed investment laws may help usher high-generation production there. Lee said AU is in talks with some Chinese rivals, including BOE and CEC-Panda, to supply components to them in the future, but he declined to give other details. In March, newly merged Chimei Innolux overtook AU as Taiwan's No. 1 and the world's No. 3 LCD maker. For Lee, however, crafting new designs is a survival issue. "Competitors are competing with volume, but we should compete on value. How much value a panel can create is a key," Lee said, who was named AU's chairman in 2001 when the company was created by a merger of Acer Display and Unipac Optoelectronics. AU has agreed to buy certain assets and display patents from Field Emission Technologies (FET), in which Japan's Sony owns a 39.8 percent stake. Other new applications, including 3D panels and electronics displays, or e-paper, are also on Lee's radar screen. AU is also diversifying into the solar market and is looking for partners to boost its new business. "We have prepared for more than two years and we are on the right direction now," Lee said. "It definitely will happen that it (the solar business) will make up more than 10 percent of AU's revenue in the future," said Lee, who often rode his bike in town on weekends to promote a green lifestyle. (Additional reporting by Argin Chang; Editing by Ken Wills) Technology     Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters.   © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index   Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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