Even though a true AI PC sales boom has yet to materialize, both supply chain firms and end-user brands are already innovating in terms of AI PC functions and designs. For Taiwanese integrated circuit (IC) design firms, these new directions present fresh opportunities for peripheral chips. In particular, touch and voice controls are likely to be the most promising additional functions for AI PCs, as computers gradually adopt more intuitive controls from the smartphone realm, moving beyond conventional mice, trackpads, and keyboards.
IC design companies possessing the relevant technologies have noted that both Microsoft and terminal clients are highly interested in incorporating touchscreen functionality into their products, with some high-end models already featuring this technology.
Among Taiwanese companies, Himax Technologies recently announced that its in-cell touch and display integration (TDDI) products have been adopted by several leading panel manufacturers for use in high-end LCDs in AI notebooks, with mass production beginning in the third quarter of 2024. Additionally, from the second quarter of 2024 onwards, touch controller specialist Elan Microelectronics has begun seeing revenue from orders for PC touch screen chips, leading to a significant boost in profits.
IC design companies note that touch functionality in PCs used to be limited to certain all-in-one models and Chromebooks, but touchscreens are now seen as a key interface in the reshaping of PC functions. Although it is still uncertain which AI capabilities will be prioritized, clients are generally committed to expanding the flexibility of PC usage, which will likely lead to increased demand for touch controller chips and timing controller boards as AI PC penetration rates improve.
Since the hype surrounding AI PCs has yet to translate into substantial sales numbers, most companies are still waiting for the potential windfall to boost performance. Among the range of peripheral chips in AI PCs, however, touchscreen chips are among the first to see a significant rise in demand. Any new product shipments will provide reassurance to IC firms, as this signals their clients' commitment to AI PCs. This is especially crucial under current conditions, as order visibility is generally less than a quarter, and IC design firms will need these orders to gauge actual market trends.
Article translated by Kevin Wang
