LCD panel maker AU Optronics (AUO) has reported consolidated revenues of NT$30.62 billion (US$994 million) for December 2010, decreasing 16.95% sequentially and 16.88% on year. However, consolidated revenues for 2010 increased 30.01% to NT$467.173 billion.

AUO attributed the decrease in December revenues to lower-than-expected TV panel prices, customers' year-end inventory control and the NT dollar's appreciation. But as demand has started picking up for the holiday period and customers' inventory adjustments are coming to an end, AUO expect panel demand will gradually recover.

The Taiwan dollar has recently appreciated by 4-5% but the Korea won has depreciated by 4% in the same period against the greenback, which has weakened the price competitiveness of Taiwan's TFT-LCD panel industry, AUO chairman KY Lee said.

In addition, the industry has suffered increased costs of materials imported from Japan, including glass substrates, liquid crystal, thin film and chemicals, because Japan yen has appreciated more than the Taiwan dollar against the US dollar, AUO noted.

Despite the revenues decrease last month, panel shipments began to rebound in mid-December mainly due to increasing demand ahead of Chinese New Year in early February, Lee said. The global panel demand-supply in 2011 will be steady, he indicated.

The AUO Group on January 8 held an event to plant 20,000 trees at the Central Taiwan Science Park (CTSP)'s Houli campus, which houses the maker's 8.5G fab, to highlight the company's commitment to the environment. The 8.5G fab, with a monthly capacity of 45,000 glass substrates, is conducting trial runs and will kick off volume production in first-quarter 2011, AUO indicated.

According to Chinese-language newspaper Economic Daily News (EDN), AUO on January 7 signed with 14 banks for a syndicated loan of NT$45 billion.

Source: Company, compiled by Digitimes, January 2011

AUO chairman KY Lee, left, plants a tree at CTSP
Photo: Rebecca Kuo, Digitimes