AU Optronics (AUO) in April 2011 invested US$796.25 million to set up FullVision Optoelectronics (Kunshan), a joint venture 8.5G panel plant in Kunshan City, eastern China, and originally expected to kick off volume production in the fourth quarter of 2012, but the commencement will possibly be delayed, according to AUO.

The Kunshan City government originally applied to set up a wholly owned 7.5G plant before AUO's investment, and the change from 7.5G to 8.5G is subject to official approval. The time taken for the approval and subsequent minimum 1.5 years needed to construct the plant, make it possible that production may need to be delayed, AUO explained.

However, the delay may not be bad viewing that the global market of large-sized panels is saturated already, AUO executive vice president Paul Peng pointed out.

While the city government and AUO hold 51% and 49% stakes in the joint venture, AUO will have substantial operating rights and may hike its stake.