Chimei Innolux (CMI) is set to begin mass producing its Touch on Display (TOD) touch screen panels, which will pose challenges for major panel makers such as TPK and Wintek as well as create price competition between them, according to sources.
CMI has been active in setting up new production plants and recruiting new employees in order to meet growing demands for small- and medium-sized panels used in smartphones and tablets, which sources say have the potential to grow exponentially over the next three years.
The panel maker's expanded growth could potentially cause a price war between major panel makers as they go head to head for obtaining orders. The expansion will also help CMI reach a monthly touch panel production capacity of approximately 220,000 units and help increase the company's sales, which are at an average of NT$6 billion (US$200 million) per month this year, added sources.
CMI is currently the third largest Taiwan-based panel maker with Wintek holding the number two spot and TPK at number one. However, Wintek will be the largest touch panel supplier for Google as the company reportedly plans to launch a 10-inch tablet with touch panels to come from AU Optronics (AUO) and Wintek, said sources.
Wintek has been shipping one-glass solution (OGS) touch panels to a number of clients, and expects OGS to become mainstream in 2013, said company chairman Hyley Huang, estimating that 26.5 million notebooks are expected to adopt touch panels in 2013.
Article translated by Alex Wolfgram
