AUO, Innolux Prepare Contingency Plans For Higher Tariffs

Taiwan’s top-two flat panel makers AU Optronics (AUO) and Innolux are taking countermeasures to adjust their production capacities to cope with the lingering impact of the escalating US-China trade dispute.

While paying close attention to the follow-up development of the US-China trade spat, AUO still maintains part of its module production capacity in Taiwan which can be adjusted for production of back-end modules and other products if the US raises the tariffs.

AUO will also adjust part of its capacity for high-end products and further diversify its production bases so as to reduce the risks involving changes in a single market, the company said.

Innolux stressed that it boasts sufficient capacities both in China and Taiwan and can make prompt adjustments of its capacity to meet the changing scenarios.

While maintaining module production capacity for automotive, TV and handset panels in Tainan, southern Taiwan, the company also boasts capacity in China for automotive panel modules in Shanghai, for TV panel modules in Foshan and for handset panel modules in Nanjing, Innolux indicated.

The company will also implement a strategy in response to calls for “localized services” by its clients in China to provide direct manufacturing and marketing services there.―Digitimes

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