According to a report by Nikkei, due to continued weak demand for LCD panels, AUO (AU Optronics) is set to close its production line in Singapore at the end of this month, affecting around 500 employees.

AUO has notified equipment manufacturers to relocate production equipment from Singapore back to Taiwan, giving Taiwanese employees the option to return to their hometowns or transfer to Vietnam, where AUO is expanding its monitor module capacity. Most of the equipment will be transferred to AUO's Longtan factory, which is focusing on the development of advanced Micro LED screens.

AUO acquired the LCD panel factory from Toshiba Mobile Display in 2010. The factory primarily produces displays for smartphones, laptops, and automotive applications. The factory employs around 500 staff, primarily local employees.

AUO stated that the Singapore factory would be closed by the end of the month and expressed gratitude to nearly 500 employees for their contributions. Most of the contract employees will have their contracts terminated due to the factory closure, while some employees will remain until the first quarter of next year to handle the closure matters. The Singapore base will continue to serve as AUO's foothold for providing smart solutions and will remain an operational stronghold for the company in Southeast Asia.

Meanwhile, another major panel manufacturer in Taiwan, Innolux, has reportedly offered voluntary resignation to employees at its Zhunan factory on the 19th and 20th. As capacity is being reduced, Taiwanese panel giants are also downsizing their Taiwan factories or exploring alternative uses.

Taken together, these developments reflect the competitive landscape in the LCD panel industry. As OLED market share expands from smartphones to tablets, laptops, and monitors, and mainland Chinese LCD panel manufacturers make significant inroads into the terminal market, increasing their market share, it highlights the challenges faced by the Taiwanese LCD industry.