AU Optronics Eyeing New LCD Plant in Poland

According to a report on DigiTimes, AU Optronics (AUO) is currently scouting for a location in Europe to open a new LCD manufacturing facility. The report suggested that Poland was a likely candidate location for AUO, which already has branches in Amsterdam. AUO already sent employees over to Poland to investigate the area. The company announced its plans earlier this month but mentioned that it was always evaluating other European locations. A final decision on Poland has not been made. AUO announced in April that it agreed to merge with Quanta Display Inc.

In June, DailyTech reported that LG.Philips made plans to build a major LCD facility in Poland as well. Heavy competition from South Korean companies such as Samsung and from Taiwanese companies such as AUO provoked an expansion by LG.Philips. According to several studies, Europe is the world's largest market for LCD panels, but North America is quickly growing. LG.Philips filed for bankruptcy protection in January of this year, closing down its dwindling CRT business.

AUO also entered into an agreement with Samsung to jointly develop LCD and OLED based panels. The two companies agreed to cross-license each other's technologies, which aimed to help compete against LG.Philips and others. Competition in the LCD market is growing rapidly. Earlier this year, NEC and SVA also agreed on a partnership to invest $4 billion USD into a 7th generation LCD-TV plant in Shanghai. The plant is scheduled to be up and operational in 2007.

Sharp also announced plans earlier this year to build a new LCD facility in Poland. The new facility is scheduled to be operational in January 2007. Sharp invested roughly $56 million USD into the new location. Sharp also sources displays from AUO/Quanta.

Source: DailyTech