AU Optronics (AUO) is currently installing equipment for AMOLED production at its 3.5G line and is scheduled to start mass production in the second half of 2011, according to executive VP, Paul Peng.

Capacity of the 3.5G AMOLED production line will reach 70 million units in the second quarter.

In addition to AMOLED, Peng is also very optimistic about the e-paper market and noted that AUO's e-paper-based e-book reader panels will increase 8-10 fold in 2011 to 3.2-4 million units, up from less than 400,000 units in 2010.

Peng noted that global e-book reader shipments were about 12-13 million units in 2010 and the market will continue to grow in 2011, while AUO will speed up to meet the demand. He added that e-book readers have a lot of room to grow in markets such as education.

Furthermore, AUO will continue to develop color e-paper and aims to launch samples of color e-paper panels that do not need a color filter in 2011, although mass production schedules for color e-paper remain uncertain, Peng added.