To provide closer services to branded customers in China, AUO Corporation submitted an application to the Investment Commission of the Ministry of Economic Affairs in regard to the investment plan in Kunshan, Jiangsu to establish a G7.5 TFT-LCD front-end manufacturing fab. According to the government regulation, the investment project application is subject to approval by the Core Technology Committee. AUO expects the investment would bring more convenient and in-time services to its customers in China, and that it could also strengthen AUO's competitiveness in China's TV market.

AUO expects that the total amount of investment for the G7.5 fab will be approximately US$ 3 Billion. AUO plans to inject US$1.2 Billion as capital, in addition to local financing support.

AUO will continue to invest in new generation lines in Taiwan. The equipment for the second production line of G8.5 is scheduled to move-in in the Taichung Science Park by the end of 2010. AUO will continue to develop its display business in Taiwan.