Taipei, Wednesday, September 3, 2014 03:59 (GMT+8)
partly cloudy
Taipei
27°C
Digitimes Research: G1F likely to disappear from market soon because of fierce challenges
Jason Yang, DIGITIMES Research, Taipei [Wednesday 11 June 2014]

A G1F touchscreen is composed of a glass-type touch sensor and a thin-firm-type touch sensor with one controlling the touch panel's X axis and the other the Y axis. G1F-based touch panels have been adopted by Samsung Electronics and Microsoft in their high-end tablets and mid-range smartphones, while LG Electronics is also said to have considered equipping its high-end smartphones with G1F touch panels.

However, the G1F touch technology's worse-than-expected cost-effectiveness has now led these vendors to other touch technologies. Microsoft's new-generation tablet is set to adopt an OGS touch panel, while Samsung is replacing G1F with an improved thin-film-type touch technology. LG has shifted its focus to the development of the OGS technology. The above factors are threatening the G1F's position in the touch panel industry.

G1F was able to gain popularity previously because it was considered to be able to overcome the problems facing rival technologies at the time: the glass-glass (GG) touch technology had weight and thickness issues; GFF technology was seriously impacted by ITO film shortages; and the emerging OGS technology had weak ruggedness and poor production yield rates.

Because of the advantages, Microsoft chose the G1F for its Surface tablet and orders were given to Taiwan-based Youngfast Optoelectronics. Youngfast later established its own glass-type touch sensor production lines and became the sole supplier of the second-generation Surface's touch panels.

However, Microsoft's acquisition of Nokia's handset business has significantly changed the software giant's supply chain for its new-generation tablet and has switched to the OGS technology from G1F.

Microsoft made the switch because the OGS touch technology has achieved significant improvements in yield rate and better ruggedness at the panel edges. And the technology only requires processing on a glass and does not need to laminate sensors with optical clear adhesive (OCA), which gives the technology a significant advantage over G1F in terms of cost effectiveness.

G1F is also losing its advantages in the supply chain of Korea-based vendors as ITO firm makers such as Nitto Denko have been aggressively expanding their capacities. China-based O-film has successfully entered Samsung tablet's supply chain with its metal mesh technology and Samsung has started to adopt single-layer multi-point thin-film touch technology for its entry-level smartphones. With the OGS technology growing mature, LG has started placing orders for OGS panels made by Taiwan-based TPK to complement the insufficiency in OGS touch panel capacities and yield rates of its affiliate LG Innotek.

After G1F touch technology gradually losing its competiveness, Youngfast, one of major G1F touch panel suppliers, has started strengthening its mass production for traditional GFF touch panels and also tried to use its new glass-type touch panel capacities to mass produce OGS touch panels.

Youngfast has also cooperated with Japan-based Fujifilm to start metal mesh touch panel production. Korea-based makers, which are also facing the same situation, are expected to adopt a similar strategy as Youngfast's. The G1F technology is likely to disappear from the market soon, Digitimes Research estimates.

Content from this blog post was provided by the Digitimes Research Tracking team, which focuses on shipment data and market trends in the global mobile device supply chain. Digitimes Research provides quarterly tracking services for market sectors such as Global Tablet, China Smartphone, China Smartphone AP, China Touch Panel, Taiwan ICT and Taiwan FPD. Click here for more information about Digitimes Research Tracking services.

Topics: Page 2

Realtime news
  • Digitimes Research: CSOT expected to ship 25 million LCD TV panels in 2014

    Displays | 5h 5min ago

  • China, Taiwan solar-grade silicon wafer makers plan to hike prices

    Green energy | 5h 7min ago

  • Semicon Taiwan 2014: Focus on new processing, packaging technologies

    Bits + chips | 5h 46min ago

  • Epistar, Genesis may benefit from Cree investment in Lextar, says Epistar

    LED | 6h 7min ago

  • Notebook panel supply expected to see 20% shortage in 3Q14

    Displays | 6h 13min ago

  • Supply chains ramp up production for 9.7-inch iPad

    Displays | 6h 14min ago

  • Foxconn to invest in AirSig

    Before Going to Press | 6h 20min ago

  • Demand of 3D ICs may not take off for 3 years, says Amkor Technology

    Before Going to Press | 6h 56min ago

  • China-based CTIEC acquires France-based CIGS business

    Before Going to Press | 7h 14min ago

  • Taiwan market: HTC to launch new exclusive stores to promote aftersale services

    Before Going to Press | 7h 16min ago

  • Niching looks to ramp up LED leadframe and FC CSP substrate shipments in 2015

    Before Going to Press | 7h 40min ago

  • China to post highest growth in semiconductor manufacturing equipment spending in 2014

    Before Going to Press | 7h 58min ago

  • Clevo chairman to develop innovation park in northern Taiwan

    Before Going to Press | 8h 8min ago

  • Shortage of CNC capacity to remain until 2015, say unibody chassis makers

    Before Going to Press | 8h 9min ago

  • Tencent invests in DXY

    Before Going to Press | 8h 13min ago

  • Digitimes Research: Samsung lowers US 7-inch tablet prices

    Before Going to Press | 8h 14min ago

  • LDK Solar sees continued losses in 1H14

    Before Going to Press | 8h 15min ago

Pause
 | 
View more

Analysis of China's revised domestic semiconductor industry goals

RESEARCH EXTRAS | Jul 16, 18:09

Facing a funding shortage for local IC manufacturers, the China State Council in June 2014 published guidelines to strengthen government support for China's semiconductor industry, while stating the short-, mid-, and long-term goals for the related industry supply...

The transition to 4k TV - UHD TV market forecast, 2014-2017

RESEARCH EXTRAS | Jun 26, 13:59

Ultra HD TV vendors are facing challenges due to an overall slowdown in the TV industry and are concerned whether relative supply chains can provide compatible Ultra HD content and services. However, trends show that content makers as well as panel and chip makers...

Taiwan LCD monitors – 2Q 2014

TAIWAN FPD | Aug 25, 14:48

Taiwan's monitor shipments grew 10% in the second quarter compared to a low first-quarter base. With panel makers reducing their supply of monitor applications and monitor vendors reluctant to increase their shipments, Taiwan's makers will only see a single-digit...

China smartphone market and industry – 2Q 2014

CHINA SMARTPHONE | Aug 12, 17:41

A delay in the launch schedule for low-cost 4G smartphones resulted in a mere 4.8% increase in second quarter shipments in the China market. However, with telecom operators planning on increasing their subsidies in the second half of the year, demand will be...

Taiwan small- to mid-size LCD panels – 2Q 2014

TAIWAN FPD | Aug 6, 21:18

Taiwan makers' small- to medium-size panel shipments reached 351.4 million units in the second quarter of 2014, up 16.8% sequentially but down 2.8% on year.

UHD TV market forecast, 2014-2017
DIGITIMES Marketing Services
  • 2014 global high brightness LED market, trends and shipment forecast

    For the global LED lighting market, the market size will reach US$25.82 billion in 2014 or a market penetration rate of 23.4%. This is attributable to exponential shipment growth for light bulbs, tubes, and directional lamps.

  • Greater China touch panel shipment forecast through 2015

    This Special Report provides forecasts through 2015 for Greater China touch panel shipments with breakdowns based on technology (glass, film, resistive), application (smartphone, NB and tablet) and by firm.

  • 2014 global tablet demand forecast

    This report analyzes the main players, their strategies and shipments forecasts for 2014, as well as other factors contributing to either growth or decline in various segments within the tablet market, with a particular focus on Apple, Google, Samsung, and Microsoft, along with whitebox vendors.