AU Optronics Corp. the world's third largest maker of flat-panel displays used in computer screens & TVs, said it started operations at its first factory that will make TV screens measuring 32 inches diagonally, as well as larger screens. The plant, known in the industry as a sixth-generation (G6) factory, is the world's third, the Hsinchu-based company said in a statement. Sharp Corp of Japan & LG Philips of South Korea last year opened the first G6 plant, which produce the largest glass sheets from which television-sized screens can be cut. Samsung Electronics of South Korea, the world's largest maker of LCDs plans to open a seventh-generation plant that can make TV screens 40 inches & larger in 2005. Flat panel prices are falling after record investments by LCD makers caused oversupply problems. LG Philips said the glut would ease as prices fall.