AUO and INNOLUX will accelerate production capacity adjustment this year and continue to renovate production lines in 2024
Display panel manufacturers AUO and INNOLUX have accelerated production capacity adjustments and renovated or closed some factories in 2023. It is expected that these two companies will continue to renovate or phase out old and inefficient production lines in 2024 to optimize production efficiency.
AUO has been adjusting its Fab 5A LCD production line in Longtan, northern Taiwan, China, China, and closed Fab C5D and C6C color filter (CF) factories in Tainan Science and Technology Industrial Park, southern Taiwan, China, China in August 2023. Its L4B factory located in Singapore is also scheduled to cease production by the end of December 2023.
Its Fab 5A production line will be adjusted to produce microLED, and AUO's first smartwatch equipped with microLED screens has begun shipping, marking the company's start of mass production of microLED products.
AUO Chairman Peng Shuanglang pointed out that due to the company's long-term competitiveness and global resource allocation considerations, AUO has been carefully evaluating the production capacity and operational efficiency of each site. It will make adjustments to production lines that are no longer cost-effective.
AUO has no plans to adjust its liquid crystal module (LCM) factory in Chinese Mainland. However, the company has established a new LCM production line in Vietnam, and some automotive customers hope that their orders will be fulfilled by North American factories. In Europe and India, AUO will utilize the existing production lines of German company BHTC and is expected to complete the acquisition of BHTC in the first half of 2024.
In terms of INNOLUX, it denied the recent speculation that it would close the T1 factory located in Zhunan, northern Taiwan, China, China, and said it was only adjusting the production line.
For its 5.5G LCD production line, INNOLUX was originally scheduled to close by the end of 2023. INNOLUX Chairman Hong Chi Minh's latest statement stated that the company will close its 5.5G factory in the first quarter of 2024, and more than 300 employees of the factory will be transferred to other factories.
In addition, INNOLUX will reduce the production capacity of LCM factories in Chinese Mainland. INNOLUX will not adjust the production of the Shanghai factory, which mainly produces automotive applications, and the still competitive Ningbo factory. The Nanjing factory that produces small and medium-sized products and the Foshan factory that produces television products will be adjusted.
Its Fab 5A production line will be adjusted to produce microLED, and AUO's first smartwatch equipped with microLED screens has begun shipping, marking the company's start of mass production of microLED products.
AUO Chairman Peng Shuanglang pointed out that due to the company's long-term competitiveness and global resource allocation considerations, AUO has been carefully evaluating the production capacity and operational efficiency of each site. It will make adjustments to production lines that are no longer cost-effective.
AUO has no plans to adjust its liquid crystal module (LCM) factory in Chinese Mainland. However, the company has established a new LCM production line in Vietnam, and some automotive customers hope that their orders will be fulfilled by North American factories. In Europe and India, AUO will utilize the existing production lines of German company BHTC and is expected to complete the acquisition of BHTC in the first half of 2024.
In terms of INNOLUX, it denied the recent speculation that it would close the T1 factory located in Zhunan, northern Taiwan, China, China, and said it was only adjusting the production line.
For its 5.5G LCD production line, INNOLUX was originally scheduled to close by the end of 2023. INNOLUX Chairman Hong Chi Minh's latest statement stated that the company will close its 5.5G factory in the first quarter of 2024, and more than 300 employees of the factory will be transferred to other factories.
In addition, INNOLUX will reduce the production capacity of LCM factories in Chinese Mainland. INNOLUX will not adjust the production of the Shanghai factory, which mainly produces automotive applications, and the still competitive Ningbo factory. The Nanjing factory that produces small and medium-sized products and the Foshan factory that produces television products will be adjusted.