AU Optronics (AUO) will see its capex reach NT$90-95 billion (US$3.1-3.27 billion) in 2011, up from NT$84.62 billion in 2010. 20% of capex in 2011 will be for investment in solar energy business and 80% for TFT-LCD.

Of the capex for TFT-LCD business, 40% will be used to enhance overall product value, while the rest will be use for capacity expansion. AUO expects to increase capacity by 12-13%.

AUO's revenues from its solar energy business in 2010 totaled around NT$10 billion, and the company expects to reach NT$20 billion in 2011.

AUO expects to improve the decrease of asset turnover in TFT-LCD business through adjusting its capex. AUO started to focus on value, while adjusting its development, capacity and new technology, hoping to increase income in 2010, and expects to see the benefits in 2011.

AUO will not only increase its capacity, but also improve the value of its previous investments with a focus on expanding market (strengthening cooperation between upstream and downstream, and expanding emerging markets), improving product mix (improving the value of LED backlighting, LTPS and high ASP products), increasing value (touch and total solutions and 3D) and developing new technology (volume production of AMOLED), Paul Peng, executive vice president of AUO noted.

Peng indicated that growth of TVs in developed countries is slowing down and has dropped to below 10% in Europe and America. Growth in China dropped from 70-80% at its peak to 30% in 2010 and will fall to 14% in 2011. Japan reached 23 million units in 2010 due to the eco point subsidy program from the government, but with the program is about to end, and so demand is expected to drop in 2011.