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Taiwan LCD Makers Lay Off in Response to Tightening Economy

By Korbin Lan
Published: Sep 21,2015

TAIPEI, Taiwan - Recently, the display panel market has been sluggish and has even begun to shrink. Two major Taiwanese display panel manufacturers, Innolux and AU Optronics Corporation (AUO), have begun to streamline their workforce. Innolux has laid of 31 people, and AUO has laid off 73 workers.

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According to Taiwan’s Hsinchu Science Park Bureau statistics, influenced by the weak economy, the panel and LED industry has recently laid off the highest number of workers in Hsinchu Science Park. Between September 1 and September 18, the six major industries in Hsinchu Science Park cut their work force by a total of 241 employees. Of these, panel and LED companies offered severance or laid off a total of 192 workers which accounted for roughly eighty percent of the downsizing.

An analysis of the Hsinchu Science Park Bureau in September shows that there have been a greater number of layoffs in the optoelectronic industry than in communications. Furthermore, there have been 18 layoffs in the computer peripherals industry and 12 layoffs in the integrated circuit industry. These figures could increase by more than ten times in the near future with the LED epitaxial leader Epistar laying off 102 Hsinchu Science Park employees and AUO cutting 73 jobs.

AUO yesterday stated that it is laying off 73 workers in response to the August closing of the Hsinchu Science Park L3A factory’s optimal product line operations.

Innolux stated that this is a normal adjustment to the labor pool, and that only workers who are unnecessary will be laid off.

The two companies’ significant decreases in revenue over a period of almost two months coupled with the news of rumored layoffs have triggered rumors that they will face losses in the fourth quarter. In addition, price quotes for panels have recently fallen below the industry’s production costs, and their increasingly approaching cash costs is casting a shadow over fourth quarter operations.

(TR/Phil Sweeney)

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