Optimism for Q4 Panel Sales, Cites Teleworking and Online Classes: AU Optronics

With teleworking and remote, online learning bolstering demand, AU Optronics Chairman Paul Peng expressed optimism regarding Q4 sales, which could perform above average.

The firm can pursue high-end, energy-efficient panels once they resolve material shortage for semiconductor chips, Peng said. He stressed that "positivity is a must" regarding next year's business outlook. He made his comments while attending the "Gap of Learning & Field" press conference and was candid regarding questions of the U.S. elections' impact on Taiwan's economy.

Currently, semiconductor chips on the market lack drivers, touch, and power management IC. AU Optronics's October profits hit NTD$25.725 billion, a monthly decline of 1.4%, but signaled a 28.8% yearly increase. The materials shortage was not the primary reason behind the slight decline; demand in the previous Q1 to Q3 had warmed, leading to increased production and emptier inventory.

Since the trade war between the U.S. and China officially began, the latter had started to transfer its subsidy packages from the panel industry to the semiconductor industry. A closer look at many Chinese panel firms' investments had declined, which is considered a return to a healthier market.

Supply problems are mostly concentrated in the IT, automotive, and television panels.

Panel competitor Innolux Corporation General Manager Yang Chu-hsiang

said panel supply remains on a short lease and expects this surge of orders to last until early 2021. With a shortage of IC-related parts, Yang says their current production capabilities can only fulfill 70% of their clients' needs.

While material supply issues have reduced the number of panels being exported, Yang said those issues have not reflected on the orders', meaning that panel prices continue to signal the market is still in greater demand over supply.