According to Nikkei Asia, display panel maker AU Optronics (AUO)(2409-TW) is preparing to scale back its facilities in Singapore or move some equipment back to the Taiwan region to expand its bet on micro-LED panel technology. It is reported that in the fourth quarter of this year, AU will ship the first screen to the Swiss boutique watch Tag Heuer smart watch.
According to the report, people familiar with the matter said that as part of the reorganization of the global production map, AU is considering how to transform the Singapore plant, including the option of moving some production equipment back to Taiwan for micro-LED technology research and development. Au will make a final decision in early 2024.
Auo signed an agreement with Japan's Toshiba Mobile Display (TMD) in 2010 to acquire TMD's subsidiary AFPD LCD panel factory in Singapore, which may be used in the future to support Southeast Asian operations, including the upcoming display module factory in Vietnam.
Au told Nikkei Asia that the company is reviewing its global plants and that production at the Singapore plant has been scheduled for early next year and will review local equipment and assets, but that no final decision has been made.
Auo said: "The Singapore plant employs about 500 people. We comply with local government regulations, conduct appropriate communication and consultation with our employees, and their interests will be our first priority as we undertake the transformation of our operations."
Nikkei earlier reported that Apple, while normally producing panels by display manufacturers, is participating in the production of micro-LED panels in order to reduce its reliance on Samsung's OLED panels.
In addition, it is also disclosed that AU will ship the first micro-LED panels in the fourth quarter of this year for Tag Heuer's smart watches. This is said to be a priority for AU, which hopes to attract other customers in areas such as wearables, TVS and cars.
Au declined to comment on specific customers.
Industry experts say that the micro-LED screen performs well in outdoor brightness, so it is suitable for use in smart watches. Compared with OLED screens, micro-LED is also more resistant to temperature, so it is more suitable for automotive applications.
Calvin Hsieh, research director at Omdia, a technology ecosystem research institute, said: "In our analysis, AU's deployment of micro-leds for smartwatches is just the beginning, and its ultimate goal is to reach more profitable and larger micro-LED customers for vehicles."
Auo ranks fourth among global automotive Display suppliers, behind boe and Tianma Microelectronics, as well as Japan Display, according to TrendForce.
