Taiwan's AU Optronics reported its financial results for Q2 2016. The display maker says that it saw strong demand for displays, including TV displays and the average panel price bottomed up in the quarter - and started to pick up. Revenues reached $2.5 billion and gross profit reached $175 million.

AUO 1.3'' circular plastic-based flexible OLED prototype photo (SID 2015)

AUO's experienced growth in both OLED client number and projects number. The company expects to ship over a million OLED panels in Q3 2016. AUO is focused on OLED for VR application and the company produces 3.8" (1080x1200) and 5.5" VR OLEDs, reaching a high 420 PPI. AUO also develops OLED displays with higher resolution - larger than 600 PPI, aiming to bring this into mass production as soon as possible.

AUO is currently producing its AMOLED displays (for VR, mobile phone and wearable applications) at its AFPD Gen-4.5 LTPS fab in Singapore which has a limited capacity. Last month the company's president said that AUO will take a "cautious attitude" towards OLED investments as it wants to make sure that these investment will be profitable. AUO sees a large increase in OLED capacity in 2018 (mainly from China-based players) - but its not clear if there will be enough OLED demand.

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