Taiwan-based TFT-LCD panel maker AU Optronics (AUO) is optimistic about the current panel industry and will increase its 2009 capex to NT$50-60 billion (US$1.48-1.78 billion) from previous estimation of NT$50 billion, as the company decided to bring forward volume production at its 8.5G plant to the end of the second quarter, according to the company.

The initial production of AUO's 8.5G plant will concentrate on 46-, 52-, and 55-inch panels with monthly capacity of 10,000 substrates, and the company estimates its capacity will reach 20,000 substrates in September.

As the global LCD TV market is estimated to reach 120-125 million units with China accounting for over 20 million units in 2009, AUO's TV panel shipments to China are estimated to increase by 20-30% this year, according to company executive VP Paul Peng.

AUO estimates that shipments of notebook panels will gradually increase from the second quarter due to low inventory in the market. The company expects that global netbook panel shipments will reach 30 million units in 2009, while the global market for traditional notebooks will reach 135 million units.

For LCD monitor panels, AUO is optimistic regarding the 16:9 aspect ratio and larger-size segments. The company estimates that the mainstream will shift to 21.5-inch and 24-inch full HD widescreen this year from 19-inch widescreen in 2008.

AUO expects its utilization to be almost full in the second quarter, compared to 65% in the first quarter, and the improved utilization will help increase the company's second-quarter revenues by 50%, company CFO Andy Yang said.

AUO president LJ Chen noted that utilization of 6G and above production lines for large-size panels will reach almost 100% in the second quarter, while utilization of 5G and lower production lines for small- to medium-size panels will be lower, as market demand for small- to medium-size panels will be relatively weaker.