Taiwan’s AUO Corporation is pivoting toward Micro LED technology as the display manufacturer seeks to break a string of quarterly losses that have forced it to tap capital reserves for shareholder distributions.
The Hsinchu-based company posted a net loss of NT$3.06 billion (US$102 million) for 2024 despite achieving a profitable fourth quarter, highlighting the volatile nature of the traditional panel business that has pressured margins across the industry.
Chairman Paul Peng outlined plans to invest NT$2 billion (US$66.7 million) in Micro LED production facilities—a fraction of the NT$200 billion (US$6.67 billion) required for comparable OLED manufacturing. The company claims its Micro LED displays offer transparency levels 50% to 100% superior to competing technologies.
AUO has already secured orders from Samsung for 114-inch Micro LED televisions and from Sony Honda Mobility for automotive applications, with the Sony displays planned for U.S. market debut in late 2026. However, the Micro LED industry faces uncertainty following Apple’s high-profile exit from the technology in February 2024, which had provided significant momentum to the sector.
While market forecasts project the Micro LED industry growing at an 81% compound annual growth rate through 2030, AUO must execute flawlessly on manufacturing scale-up while competing against established players like Samsung and LG Display in premium display segments.
Currency fluctuations continue affecting AUO’s financial performance, adding complexity to the company’s turnaround efforts.
