Economic downturn casts pall over Touch Taiwan
The 2023 Touch Taiwan exhibition is underway, featuring cutting-edge display panels for sectors like automotive, retail, and art. But the panel industry has been struggling since last year due to a global economic slump. On Tuesday, AUO Corporation says it will adjust its production lines. Meanwhile, Innolux has decided not to issue dividends due to losses. Instead, it will offer a cash capital reduction of NT$4.778 billion, to give back NT$0.5 per share to their 570,000 shareholders.
The 2023 Touch Taiwan exhibition opened on Wednesday with 295 participating companies. This year’s highlights are cross-industry applications, such as AUO’s 55-inch curved automotive display, which uses eye-tracking technology to detect driver fatigue. The display for the front passenger seat features switchable privacy technologies, to avoid diverting the driver’s attention.
Innolux, a leading panel manufacturer, used 660 lightboxes and 2,080 9-inch light panels to create an immersive exhibition space. It’s also unveiled display solutions for the retail sector and art galleries. But amid an industry downturn that began last year, Innolux has suffered several consecutive quarters of losses. It’s decided not to pay dividends, but to implement a cash capital reduction of NT$4.778 billion. This would give its 575,000 shareholders a payback of NT$0.5 per share.
Jim Hung
Innolux chairman
Performance in the second and third quarters should be better than the first’s, as the economy recovers and clients restock inventory. The highest inventories have already dipped to their lowest levels. Because of last year’s losses, we can’t distribute a surplus, but we want to return cash to our shareholders through a capital reduction.
AUO expects demand for TV panels to recover quarter by quarter. AUO also addressed reports that it planned to adjust capacity for some production lines.
Paul Peng
AUO chairman
We will make dynamic adjustments according to the economic climate. Of course some of our older factories have a limited lifespan. The other thing is that their overall competitiveness, their carbon emissions factor, are worse than that of newer factories. So we are upgrading them, or “emptying the cages to change the birds.”
As for the recent water shortage in the south, AUO said it was not hurting production.
Paul Peng
AUO chairman
We recycle up to 95% of the water we use in the process of energy, power, and water consumption. Even with the recent water shortage, we have a sufficient supply for our use. We have not been affected by the water shortage.
In the face of the drought, summer power needs, and global economic challenges, businesses hope for resolution and relief to come quickly.
2023-04-19
