AUO: Automotive Micro LED is expected to enter mass production in 2026

AUO held a press conference for the fourth quarter of 2023 on January 31. Chairman Peng Shuanglang said that the automotive market is gradually growing, with revenue exceeding NT$40 billion last year, and its contribution to vertically integrated products is gradually expanding. The overall inventory is already at a healthy level, and automotive use will continue to drive cockpit development. Capital expenditures for the entire year of 2024 are not expected to exceed NT$30 billion.

Regarding the IT panel market outlook, AUO said that after six quarters of inventory adjustments, it has returned to a healthy state, and brand shipments will show year-to-year growth for the first time in the fourth quarter of 2023. Looking forward to 2024, positive signals such as the replacement wave, AIPC-driven demand, and the global move towards zero carbon have emerged, becoming a major driving factor for IT panels, and the outlook for this year is positive.

For TV panels, AUO believes that the average sales size hit a new high in the fourth quarter, reaching 51.7 inches. Strong demand in North America and mainland China has increased the demand for production capacity. In addition, the European Cup, America's Cup and Olympic Games in 2024 are driving customers to upgrade in large sizes and specifications. The current demand for stocking is moving forward. There have been signs of stocking up since January, and it has driven various sizes of TVs. Small and medium sizes have begun to increase in price, and they are more optimistic about demand after the spring.

In terms of Micro LED layout, AUO General Manager Ke Furen emphasized that the current core goal is to bring Micro LED to valuable markets. The first is wear. The company has mass-produced Micro LED watches last year, followed by TVs and transparent displays for different industrial and commercial applications. The introduction speed will be faster than that for automobiles. It is expected that there will be good results from the second half of this year to next year, and gradual introduction and mass production; for automobiles, Micro LED is expected to be available in 2026-2027. The LED project has entered the mass production stage.

As for the production line construction contract between AUO and Nitron, the construction is expected to be completed by the end of the year, and small quantities can be produced in the first half of next year. AUO said that its cooperation with Nitron is focused on cost competitiveness that will become common in the future and is also preparation for the production of large-scale panels. (Source: Science and Technology News)