AU Optronics (AUO) started small volume shipments of tablet PC panels in the fourth quarter of 2010 and expects to start mass volume shipments with touch panel solutions in the first quarter of 2011 in response to client's schedules to launch new products, according to Paul Peng, executive vice president of AUO.

Peng indicated that AUO's tablet PC panel shipments will focus on providing a complete solution of a high-resolution, wide-viewing-angle TFT-LCD panel with an in-house touch solution.

AUO's 4G line has started producing touch sensors, and about half of the capacity at the 4G line will be used for touch sensors. AUO also plans to transform its 5G line for touch panel production in the future, Peng said.

Tablet PC shipments were about 16 million units in 2010, and market sources expect the market to increase 3.5-5 fold in 2011. AUO's tablet PC panels are produced based on LTPS and MVA wide-viewing-angle technologies, and the company currently is shipping 1064 by 600 and 1280 by 800 resolution models.

In terms of high-end small- to medium-size panels, Peng noted that monthly capacity of LTPS is about 20,000 substrates on 3.5G line and 45,000 substrates at the 4.5G line of its Singapore subsidiary AFPD.