AU Optronics sees potential LCD global shortfall next year

Taiwan's AU Optronics, the world's No.3 LCD maker, said yesterday there could be a global supply shortage of LCDs next year, amid booming demand for LCD televisions.

"Supply is seen to grow by 22 to 25 percent, but demand is seen growing by 28 to 30 percent," an AU official, who declined to be identified, said on the sidelines of a news conference, referring to LCD panels.

The official also said the company's first-quarter sales for next year should beat the first quarter of previous years.

AU, which supplies PC-use LCD panels to Dell Inc. and Hewlett-Packard Co., had said it plans to build a next-generation LCD plant to meet demand for bigger flat TVs, and will decide what technology it will use to make panels by the end of the year.

Bigger rivals such as Samsung Electronics Co. Ltd. and LG.Electronics LCD have also been expanding their capacity, fuelling concerns of a supply glut. AU had said it would likely lift its capital spending in 2008 from the current NT$90 billion (US$2.7 billion) for its new plant.

Earlier this month, Taiwan's Amtran, whose Vizio-branded LCD TVs are the top sellers in the U.S., said 34- and 37-inch models were likely to see a shortage in the second half of next year amid growing popularity for LCD TVs.

On Friday, AU's shares closed 4.3 percent higher, outperforming the benchmark TAIEX, which rose 1.0 percent.