TAIPEI (TVBS News) — AU Optronics Corp. (AUO) is reportedly planning to shut down its display production line in Singapore by the end of December, impacting up to 500 employees as it moves manufacturing equipment back to Taiwan, Nikkei Asia reported on Wednesday (Dec. 20).
The company has notified equipment suppliers to return production assets from Singapore to Taiwan and is offering Taiwanese staff at the Singapore facility the option to relocate back to Taiwan or transfer to Vietnam, where AUO is expanding its display module capacities.
In confirmation of the report, AUO stated that its Singapore base "would transform into a hub for providing smart solutions, and will become the company's fortress for operations in Southeast Asia."
This strategic adjustment reflects challenges within the Liquid Crystal Display (LCD) industry as Organic Light Emitting Diode (OLED) technology gains preference in smartphones, tablets, and laptops.
A source revealed that most of the equipment will be relocated to AUO's Longtan plant, which is aggressively developing microLED displays aligned with Apple's strategy, the report stated.