AUO: CPO expected to yield results in 2 years, optimistic about automotive and Mexico plant to start production in 2027
AUO is focusing on Micro LED technology for Co-packaged Optics (CPO) in optical communication and automotive displays, aiming for results in 2-3 years. Its Mexico plant expansion is set to begin production in 2027, supporting the company's strategic shift towards high-value-added non-display businesses despite a net loss in Q1 2026.
📋 Article Processing Timeline
- 📰 Published: April 30, 2026 at 21:10
- 🔍 Collected: April 30, 2026 at 21:31 (21 min after Published)
- 🤖 AI Analyzed: May 1, 2026 at 08:22 (10h 50m after Collected)
Central News Agency
(Central News Agency, Taipei, April 30) Panel manufacturer AUO Corporation Chairman Paul Peng stated today that he is optimistic about the AI market. Micro LED in the optical communication field, targeting Co-packaged Optics (CPO) applications, is expected to see results in 2 to 3 years. In terms of display applications, the 4.5-generation Micro LED production line has been completed, which is conducive to enlarging production sizes and reducing process costs. He is optimistic about the visibility of orders for automotive applications, and the expansion of the Mexico plant is expected to start production in 2027.
AUO held an online investor conference today. Paul Peng pointed out that CPO application is an important cooperation project between AUO and Ennostar in optical communication. Ennostar provides transmitting components, and AUO performs system integration.
Regarding the qualitative change in the panel industry's transformation, he emphasized that this year's Smart Display Exhibition has shifted to display and non-display applications, no longer focusing on resolution or narrow bezels as before, but rather on how display technology can be applied to life, and non-display applications have also made great progress. He is optimistic about the AI industry, targeting CPO, augmented reality (AR) glasses, and low-earth orbit satellite applications, such as glass substrate antennas.
AUO General Manager Frank Ko stated that Micro LED applications in AI servers are expected to drive "light in, copper out," where optical transmission replaces copper wire transmission. Micro LED can also be applied to new types of solutions for automotive panels, which can effectively respond to car manufacturers' operational trends and connected car demands. The Chinese car market is expected to improve in Q2 this year, coupled with AUO's layout in the international car market, the automotive business is expected to grow in Q2.
Frank Ko explained that TV panel shipments grew in Q1 due to sports events and early stocking demand caused by memory shortages; Q2 will see demand from sports events and Amazon Prime Day.
AUO announced a net loss attributable to owners of the parent company of NT$1.14 billion in Q1 2026, with basic earnings per share of NT$0.15. Paul Peng stated that the company is actively transforming and increasing the proportion of non-pure display businesses. The gross profit margin has gradually improved since 2024, but profit creation is still insufficient, and adjustments will continue.
Paul Peng pointed out that consumer electronics demand is weak in Q2, mainly because customers pulled in panel shipments in the previous two quarters due anticipating memory shortages, but automotive and vertical field businesses are still expected to grow steadily. However, due to the impact of the Middle East conflict, there may be inflation concerns in the second half of the year, and order visibility is low. It is uncertain whether prices will rise with raw materials, so the company can only be cautious but not pessimistic.
In addition, AUO pointed out that the capacity utilization rate in the off-season in recent years was only about 80%, reaching 88% to 90% in Q1 this year, which is already good. (Editor: Yang Kai-hsiang) 1150430
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(Central News Agency, Taipei, April 30) Panel manufacturer AUO Corporation Chairman Paul Peng stated today that he is optimistic about the AI market. Micro LED in the optical communication field, targeting Co-packaged Optics (CPO) applications, is expected to see results in 2 to 3 years. In terms of display applications, the 4.5-generation Micro LED production line has been completed, which is conducive to enlarging production sizes and reducing process costs. He is optimistic about the visibility of orders for automotive applications, and the expansion of the Mexico plant is expected to start production in 2027.
AUO held an online investor conference today. Paul Peng pointed out that CPO application is an important cooperation project between AUO and Ennostar in optical communication. Ennostar provides transmitting components, and AUO performs system integration.
Regarding the qualitative change in the panel industry's transformation, he emphasized that this year's Smart Display Exhibition has shifted to display and non-display applications, no longer focusing on resolution or narrow bezels as before, but rather on how display technology can be applied to life, and non-display applications have also made great progress. He is optimistic about the AI industry, targeting CPO, augmented reality (AR) glasses, and low-earth orbit satellite applications, such as glass substrate antennas.
AUO General Manager Frank Ko stated that Micro LED applications in AI servers are expected to drive "light in, copper out," where optical transmission replaces copper wire transmission. Micro LED can also be applied to new types of solutions for automotive panels, which can effectively respond to car manufacturers' operational trends and connected car demands. The Chinese car market is expected to improve in Q2 this year, coupled with AUO's layout in the international car market, the automotive business is expected to grow in Q2.
Frank Ko explained that TV panel shipments grew in Q1 due to sports events and early stocking demand caused by memory shortages; Q2 will see demand from sports events and Amazon Prime Day.
AUO announced a net loss attributable to owners of the parent company of NT$1.14 billion in Q1 2026, with basic earnings per share of NT$0.15. Paul Peng stated that the company is actively transforming and increasing the proportion of non-pure display businesses. The gross profit margin has gradually improved since 2024, but profit creation is still insufficient, and adjustments will continue.
Paul Peng pointed out that consumer electronics demand is weak in Q2, mainly because customers pulled in panel shipments in the previous two quarters due anticipating memory shortages, but automotive and vertical field businesses are still expected to grow steadily. However, due to the impact of the Middle East conflict, there may be inflation concerns in the second half of the year, and order visibility is low. It is uncertain whether prices will rise with raw materials, so the company can only be cautious but not pessimistic.
In addition, AUO pointed out that the capacity utilization rate in the off-season in recent years was only about 80%, reaching 88% to 90% in Q1 this year, which is already good. (Editor: Yang Kai-hsiang) 1150430
Choose to stand with facts, every sponsorship is a force to protect press freedom.
Download the Central News Agency "First-hand News" APP to get the latest news instantly.
The text, images, and videos on this website may not be reproduced, publicly broadcast, or publicly transmitted and used without authorization.