Taiwan-based AU Optronics (AUO) will begin volume production of 43-inch (42.5-inch) LCD TV panels at its 7.5G and 8.5G factories in the third quarter of 2014 in order to evade intense competition for 39- to 42-inch models, according to industry sources in Taiwan.

LCD TV panels sized 43-inch were actually introduced into the market back in 2011 from Samsung Display but did not carve a niche in the market due to low yields, leading Samsung to focus primarily on production of 40- and 48-inch panels.

AUO now is hoping to popularize the panel technology as an alternative to 42-inch panels, which are likely to suffer in shipments due to Innolux's recent moves to produce 39.5- (40-inch) panels to combat 39- to 42-inch panels.

Market observers believe that shipments of 39- to 42-inch TV panels are likely to reach around 70 million units in 2014, and that AUO's move could influence those numbers.