Taiwan's AU Optronics on track to build new LCD plant

TAIPEI, June 12 (Reuters) - Taiwan's AU Optroncis Corp (2409.TW), the world's No.3 LCD maker, said on Thursday its plan to build a new LCD plant was on track and it would allocate T$100 billion ($3.3 billion) for the first stage of construction.

An AU (AUO.N) spokeswoman confirmed local newspaper reports that quoted AU President L.J. Chen as saying AU would initially invest T$100 billion to build the new plant, which will have capacity of 30,000 motherglasses per month.

"We have an internal team to evaluate the plan to build the new plant, which will be completed by several stages," said the spokeswoman, who declined to be named.

Competing with two bigger South Korean rivals, LG Display (034220.KS) and Samsung Electronics (005930.KS), AU announced a longer-term plan to build a new factory in late April, using more advanced 10th generation or higher technology for making LCDs.

AU has said there will be a small-scale production by 2011 or 2012 but it has not yet decided on the glass size.

At 0223 GMT, AU's Taipei-listed shares had dropped 0.8 percent, while the main TAIEX share index was down 2.6 percent.

AU said last month it would allocate at least T$100 billion for its capital expenditure in each of the next two years, compared with this year's forecast of T$140 billion, but the budget can be adjusted depending on market conditions. (US$1=T$30.4) (Reporting by Baker Li; Editing by Anne Marie Roantree)