AU Optronics (AUO) expects its small- to medium-size TFT-LCD panel shipments to increase 5-8% sequentially, and its large-size panel shipments to remain unchanged or slightly decrease in third-quarter 20124.

AUO shipped 347,200 square meters of small- to medium-size panels in the second quarter, hiking 47.62% sequentially mainly due to growing demand from China-based smartphone vendors, the company said.

For small- to medium-size applications, AUO uses a-Si technology to produce HD panels and LTPS technology to produce Full HD, in-cell touch and WQHD panels.

As AUO has reached a global market share of 30% for small- to medium-size HD panels, the company said it plans to use a-Si to produce entry-level Full HD panels in second-half 2014 while high-end Full HD panels will continue to be made using LTPS technology. AUO will begin production of 5.5-inch above 500ppi WQHD LTPS panels in the third quarter.

For large-size applications, AUO said it offers Ultra HD, curved-surface, wide-color-gamut, above 50-inch TV panels to maintain international competitiveness.

Global demand in 2014 is estimated to grow on year by 7-9% in terms of panel area, AUO said, adding as global supply will increase only 5-8%, supply will be tight this year.