AU Optronics, Taiwan’s second-largest display panel manufacturer, slipped to a quarterly loss as currency appreciation and declining panel prices offset seasonal demand typically seen in the third quarter.
The company reported a net loss of NT$1.28 billion ($41.7 million) for the three months ended September, with revenue reaching NT$69.91 billion ($2.28 billion), down 10.1% from a year earlier. The results mark a reversal from the profitability AUO achieved earlier in 2025.
The display technology segment, which accounts for the bulk of revenue, saw flat quarterly performance as the strengthening Taiwan dollar and falling panel prices dampened what is normally the industry’s strongest period. The mobility solutions division contracted 3% on currency headwinds, while the vertical solutions unit jumped 20% following the integration of Adlink Technology.
For the first nine months, AUO posted NT$4 billion ($130 million) in net income, showing improvement over last year’s losses. However, inventory levels remain elevated at 52 days, and the company’s debt-to-equity ratio stands at 39.1%.
Management acknowledged the challenging outlook, citing slowing demand as the display market enters its seasonal trough and broader economic uncertainties cloud visibility. The company plans to focus on higher-value products and tighter inventory controls to navigate the downturn.
