align="justify">It's reported that AU Optronics (AUO) has confirmed it is preparing to produce LEDs in house, with construction of a new plant about to start.

AUO said it will produce LEDs at a plant in Hsinchu, Taiwan construction of which is about to begin, but did not elaborate any further about a detailed operating schedule. Officials from the Hsinchu Science Park authority also confirmed the plans, saying that AUO has been allotted a 2-hectare plot for the construction. However, they added in saying that AUO has not yet submitted related applications to the authority, but noted that approval would only take one month upon application.

Industry sources indicated that AUO is likely to start construction in April, with the new LED plant to cover production from wafers to chips. The panel maker is said to have source five sets of metal-organic chemical vapor deposition (MOCVD) equipment for the facility. Operation is expected to begin during late 2008 or early 2009. David Su, senior vice president at AUO, will lead the new operation, the sources detailed.