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AU Optronics to Invest NT$80 Billion on its Next Generation FAB–G6 (2003.08.20)
Hsin Chu, Taiwan

AU Optronics Corp. ("AUO" or the "Company") (TAIEX: 2409; NYSE: AUO) Chairman, K.Y. Lee, announced today, at its 2Q Investor Conference in Taipei, “The TFT-LCD industry has stabilized over time with excellent long term growth potentials.” He Added that the company’s next generation fab (L10) located at the Taichung Science Park will be utilize Sixth Generation technology, with 1500mm X 1850mm dimensional mother glass and monthly first phase capacity estimated at 60k.

Chairman Lee announced at the Investor Conference that the decision to utilize Sixth Generation technology for its next generation fab was made greatly in consideration of the company’s future positive expectations of LCD TV market. LCD TV panels of larger than 30 inches is expected to be of marked demand in coming years, and G6 fab technology is found to have the optimal cuts to feed this demand. By utilizing 1500mm x 1850mm dimensional mother glass, G6 technology can produce up to eight 32” panels, six 37” panels, or four 40” LCD TV panels. The Taichung Science Park site, which underwent groundbreaking late July this year, will be the site for the company’s Sixth Generation Fab., with production estimated for 2Q 2005.

The company’s CFO, Max Cheng, added that the Taichung site would not only include AUO’s next generation fab, but also a colour filter plant (C10) and module plant (M10), totaling investments of NTD80 billion. This site will be the most complete and fully integrated manufacturing site, which places AU Optronics one notch ahead of the rest.

Dr. Poyen Lu, the company’s Executive Vice President for Technology and Production stated that since the start up of G4 fab, and later into G5 fab., AUO has been self-sufficient, setting up the challenges of these next generation fabs with its own technological abilities. Monthly capacity for the company’s G5 fab is forecasted to reach 35k in September.

The company placed on display its latest 30"W LCD TV panel, estimated for production by November and is already in strong demand. Considering its 15”, 17”, 20.1" and 26"W LCD TV are all full into production and within the next four months, AUO plans to launch additional 14", 17"W, and 46"W LCD TV panels, it is clear that AUO is aggressively strategizing for a full range of the LCD TV market.

H.B. Chen, President of AU Optronics reiterated, “ AUO is one of the two TFT-LCD Manufacturers in the world that produced a full range of application and sizes. G6 technology will bring to life our vision in the LCD TV market. Our flexible capabilities with a wide-range of fabs of different generations will enable us to provide all-round service to our clients. Our company will be the most flexible and competitive in the industry.”