AU Optronics (AUO) held its Q4 2023 earnings press conference today, outlining significant growth in the automotive market and a positive outlook for IT and TV panel sectors in the upcoming year. Chairman Peng Shuanglang highlighted that automotive market revenue surpassed 40 billion last year, with a notable increase in the contribution from vertically integrated products. AUO’s inventory levels have stabilized at a healthy level, and automotive applications are expected to continue driving cockpit advancements. The company has set its capital expenditure for 2024 not to exceed 30 billion yuan, indicating strategic investment planning.
In the IT panel sector, after six quarters of inventory adjustment, AUO has returned to a healthy state, with brand shipments expected to show year-on-year growth for the first time in the fourth quarter of 2023. The forecast for 2024 is optimistic, fueled by a replacement wave, AI PC-driven demand, and a global shift towards zero carbon—factors poised to drive IT panel demand significantly.
For TV panels, AUO reported that the average sales size reached a new record of 51.7 inches in the fourth quarter, with strong demand in North America and China boosting demand and production capacity. The upcoming European Cup, America’s Cup, and Olympic Games in 2024 are anticipated to upgrade sizes and specifications, with early signs of increased stocking activity since January leading to price rises across various TV sizes.
On the Micro LED front, General Manager Ke Furen stated that AUO’s core focus is on bringing Micro LED technology to valuable markets, starting with wearables, as evidenced by the mass production of Micro LED watches last year. The company plans to accelerate the introduction of Micro LED technology in TVs and transparent displays for industrial and commercial applications, with expectations of significant achievements from the second half of this year into the next. Automotive applications of Micro LED are projected to enter mass production stages in 2026-2027.
Additionally, AUO mentioned its production line construction contract with Nitron, expected to be completed by the end of the year, with small-scale production commencing in the first half of the next year. This collaboration with Nitron focuses on cost competitiveness and preparation for large-scale panel production, positioning AUO strategically for future market demands.
