AUO: The panel market will not be revised downwards, and plans to set up a factory in the United States will be finalized early next year

The panel industry has been undergoing correction for more than a year, and prices have rebounded slightly in the past two months. AUO Chairman Peng Shuanglang said on the 12th that the correction of the overall panel industry this year has reached the bottom, and it will only get better in the future and will not be revised downwards. At present, the market is still undergoing inventory adjustments, and the pace of the panel industry's recovery next year still depends on future inventory adjustments.

Peng Shuanglang also pointed out that after the restructuring of the supply chain, AUO will definitely be closer to the market, so next year it will confirm plans to build a factory in the United States.

In terms of the prosperity of the panel industry, Peng Shuanglang said that this wave of correction in the panel industry is L-shaped. At present, it seems that the industry is in the worst situation and has reached the bottom. However, it is difficult to say how long the bottom of the panel industry will last. A rebound in the future industry can be expected. As for the speed and time of the rebound, it will also depend on the speed of recent inventory adjustment.

In addition, Peng Shuanglang also pointed out that inflation has a great impact on the overall consumer market, so inflation is also the focus of future observation. Although the inflation situation has eased recently, it has still not returned to the original normal level. Whether this wave of seasonal sales at the end of the year can meet expectations is one of the key points of observation. If it can meet expectations, then the inventory at the channel end will decrease.

However, he also pointed out that it seems that the purchasing power and consumption amount of 3C products during the Double 11 Shopping Festival are still lower than expected. In the future, we will continue to observe the sales of consumer products in the European and American markets at the end of the year. If the inventory is adjusted back to a healthy level, prices are expected to be adjusted and replenished along with the inventory, and there will be reasonable room for adjustment.

As for the outside world's concern about AUO's plan to set up a factory in the United States, Peng Shuanglang pointed out that in recent years, the global supply chain has changed from long chains to short ones, and the supply chain will also be deconstructed and then reconstructed. During the reconstruction process, it will definitely be closer to the market. AUO is currently the top two suppliers of automotive panels in the world. Being close to the market is a development trend, so it will also set up factories in the United States in response to the needs of automotive customers.

As for whether the factory will be set up in North America or Mexico, he said that it has not yet been determined, but in the future, the plan for the US factory will mainly focus on back-end modules and assembly, while the front-end will still be mainly in Taiwan. The final decision on the US factory plan is expected to be made next year, and it is hoped that mass production will occur in 2025. (Source: Taiwan Economic Daily)