Taipei, Sept. 17, 2008 (CENS)-- AU Optronics Corp. (AUO), a TFT-LCD panel manufacturer in Taiwan, reported consolidated revenue of NT$37.09 (US$1.16 billion at US$1: NT$31.9) in August, up 13.6% from previous month but down 15.9% from a year earlier.

The company shipped 7.25 million large-sized (over-10-inch) panels last month, a 12.6% monthly increase, and 20.78 million small/medium-sized panels, a 17.7% monthly growth. Industry sources said that AUO`s results for August showed a warming global panel market.

By constrat, HannStar Display Corp., another major maker in the line, suffered a 2.9% monthly decline in August revenue of NT$4.81 billion (US$150.63 million), and the firm shipped 1.29 million large-sized panels (up 4.3% from previous month) and 1.61 small/medium-sized panels (up 4%). Industry insiders said HannStar`s minor revenue decline meant market prices were still falling.

After panel makers` moves to reduce production and clear inventories, industry sources observed, the panel market has seen some recovery, and makers pointed out that shipments in September are expected to grow slightly, though they are not totally optimistic about sales in the coming few months because the demand recovery is weak.

Market-survey company WitsView said that in the third quarter, a traditional peak season, the demand is weaker than expected due to the global economic meltdown. The panel inventory, as a result of weak demand, needs more time to clear.

After the stiff panel-price falls, WitsView said, downstream brands and distributors are expected to promote more price-attractive products during the back-to-school and Christmas peak periods. However, the company said, currently downstream panel customers are still adjusting inventories and halting orders, further pressuring panel suppliers despite panel prices having fallen below cost.

(by Quincy Liang)