China touch panel maker O-Film reportedly was responsible for 23% of global handset touch panels in 2013 and the percentage is expected to climb to 35% in 2014, according to supply chain sources.
O-Film aims to achieve the percentage through price competitiveness, mergers and acquisitions, increased partnerships, expanded production capacity and improved technology in order to land more customers both domestically and internationally, the sources said.
Price competition in particular has given O-Film advantages in the market throughout 2013 and into 2014, and Taiwan touch panel makers felt the heat, with many market observers expressing concern for Taiwan's touch panel industry.
However, touch panel makers in Taiwan have been developing on-cell touch products and have reportedly begun mass producing the technology as of second-quarter 2014, with shipments expected to go to first-tier China-based handset vendors.
On-cell technology is expected to be in higher demand from China's handset vendors in 2014, which means the Taiwan makers may be able to secure more orders in the mid-range handset market than expected. O-Film, meanwhile, has plans to further develop on-cell touch panel technology, but is likely to focus more on entry-level smartphone touch panel solutions to increase its market share in 2014, added market observers.
Article translated by Alex Wolfgram
