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Success in High-End Smartphone Balloon AUO Small-and Medium-Size-Panel Business

Published: Nov 05,2013

As the process technology is getting advanced, AUO’s small and medium size panel with high definition is attracting attention for some primary mobile phone brand manufacturer to apply in various of high-end smart phone, especially the China smartphone company. The output of AUO’s small-and-medium-size panel increased by 20% for the third quarter compared with the second quarter; meanwhile, the fourth-quarter output is expected to increase.

Apparently, the production of AUO’s small-and-medium-size semi-panels (Open Cell) is increasing this year along with receiving orders from Chinese high-end smartphone companies including Huawei, ZTE, Lenovo, millet. Accordingly, the contribution margin of small-and-medium-size panel sector increased by 40%, which generate the capacity utilization for 4.5 and 5 generation plant, as well as the growth momentum for small-and-medium-size panel.

In the third quarter of 2013, the revenue of AUO’s small-and-medium-size panel came up to 18%, the profitability is higher than big size panel.

According to AUO, 5 inch smartphone will be the primary trend in the second half of this year; in addition, LTPS panel will be the adoption in high-level product with more than 400ppi.

As for AMOLED panel, AUO is overcoming the yield rate gradually to supply for China mobile phone companies and consequently new smartphone with AMOLED display will predicted to unveil next year. AUO will be the second supplier for AMOLED display following Samsung.

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