AU Optronics (AUO) has been speaking for a while now about about developing new 10G fabs in central Taiwan (see No 10G AUO Plant in China and AU Optronics Gets Land). Yesterday Digitimes reported AUO have committed to building four new 10G or above fabs in Taiwan. Digitimes notes:
AU Optronics (AUO) plans to invest NT$400 billion (US$12.68 billion) to build four 10G or above LCD panel plants in Taiwan in the next 10 years, company chairman KY Lee has disclosed.
Lee's revelation, which followed a meeting with Taiwan's Premier Liu Chao-shiuan Wednesday, comes as a confirmation of previous local press reports that the LCD panel giant would be constructing four next-generation plants at a new campus of the Central Taiwan Science Park (CTSP).
After the announcement AUO shares surged. Reuters wrote:
Shares of Taiwan's AU Optronics Corp, the world's third-largest LCD maker, jumped more than 2 percent to near a two-week high on Thursday, after it announced a long-term investment plan to build new factories. AU's shares rose 2.2 percent by midday, defying the broader electronics sector's 0.6 percent fall and the main TAIEX's 0.4 percent drop. Shares of smaller local rival Chi Mei Optoelectronics Corp also rose 1.3 percent.
We at Hi Tech Taipei are always pleased to see Taiwanese companies investing in Taiwan. Taiwan's economy certainly needs the boost and the jobs generated by the investments are also welcome. Of course the investments will also help AUO stay competitive in the long run. Although the investment is going to be large, the downstream benefits of enhanced capacity, better products and cost advantages arising from the more advanced factory will benefit them greatly. It will also help to keep Taiwan competitive in technology and at forefront of the hi tech sprint.
Digitimes: AUO promises four 10G or above LCD plants in Taiwan
Reuters: AU shares hit near 2-wk high after new LCD investments
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