AUO's Monthly Revenue Close to TSMC's

Taipei, Nov. 14, 2005 (CENS)--The monthly revenue of AU Optronics Corp. (AUO), Taiwan's No. 1 maker of thin film transistor-liquid crystal display (TFT-LCD) panels, is expected to outstrip that of Taiwan Semiconductor Manufacturing Corp. (TSMC), the world's largest dedicated semiconductor foundry, this month at the earliest, according to industry sources.

The development has indicated that the TFT-LCD panel sector is expected to replace semiconductor as Taiwan's most important electronic-parts line in the near future.

AUO registered revenue of NT$24 billion (US$714.29 at US$1: NT$33.6) in October, only NT$2 billion (US$59.5 million) lower than TSMC's. AUO's newly added panel capacity at its sixth-generation (6G) panel plant is expected to further boost the company's revenue and raise its monthly sales to outstrip NT$30 billion (US$892.86 million) soon.

AUO registered revenue of NT$59.5 billion (US$1.77 billion) in the third quarter, and the company's fourth-quarter revenue is expected to grow by at least 15% sequentially.

AUO chairman K.Y. Lee recently claimed that Taiwan's large-sized TFT-LCD panel line has reached a similar scale to that of local semiconductor sector in a period of only eight years, compared to 20 years of efforts by the latter. Currently, the chairman stressed, Taiwan has outstripped Japan and South Korea to become the world's No. 1 supplier of such panels.

According to industry sources, TSMC has been established for about 20 years and the semiconductor foundry business has entered a mature status and has seen a slowdown in growth momentum. On the contrary, most local TFT-LCD panel makers have been continuously investing in new-generation panel plants to grab the lucrative businesses generated from the rising LCD TV market. AUO, for example, has started mass production at its new 6G plant and is planning to install equipment at a 7.5G new facility in the second quarter next year. CMO's 5.5G new plant is scheduled to achieve a full-capacity mass production of 90,000 substrates per month by the end of the year, and the firm is also planning to install equipment at a 7.5G facility next year.

The vivid development of local TFT-LCD panel line has attracted many world-class makers of equipment and key panel parts (such as substrate, diffuse panels, cold cathode fluorescent lamp, or CCFL, etc.) to set up plants in Taiwan.

A Comparison in Biz Operations Between TSMC, AUO Unit: NT$100 million
Year	Item	TSMC	AUO
2002	Revenue	1,609	755
	Net Profits	216	60
	Capital	1,858	363
2003	Revenue	2,019	976
	Net Profits	472	156
	Capital	2,022	428
2004	Revenue	2,559	1,646
	Net Profits	923	279
	Capital	2,324	480
2005 First 3Qs	Revenue	1,872	1,448
	Net Profits	596	41
	Capital	2,472	557

Source: The companies' websites.