The value of touch panels manufacture worldwide in 2006 was USD 1.028 billion, to which Taiwanese makers led the sector with 38%, according to statistics from the Industrial Economics & Knowledge Cent…
The value of touch panels manufacture worldwide in 2006 was USD 1.028 billion, to which Taiwanese makers led the sector with 38%, according to statistics from the Industrial Economics & Knowledge Center (IEK) part of the government-funded Industrial Technology Research Institute (ITRI). The demand for touch panels, which are being widely installed in mobile phones, portable game consoles, personal navigation devices (PNDs) and ultra-mobile PCs (UMPCs), is resulting in a compound annual growth rate in the shipment of touch panels which is expected to exceed 35%. Estimates from the IEK say that the global production of touch panels will grow by 50% to USD 1.5 billion in 2007, with Taiwanese manufacturers having more than 40%, or USD 600 million. These optimistic forecasts have attracted numerous manufacturers of Taiwan to enter the sector, such as Innolux Display Corp. and Wintek Corporation. One of these new manufacturers of touch panels is Innolux, who has already announced its plan to mass produce the items in the fourth quarter of 2007, while another has plans to invest NT$ 1 billion for new plants with capacity of 60,000 units per month. Wintek, after starting its production of capacitive touch panels, now intends to further integrate its supply chain by developing indium tin oxide (ITO) conductive glass and other products. Other touch panel makers, such as J TOUCH Corporation, Young Fast Enterprise Co., Ltd. and SWENC Inc., as well as ITO conductive glass suppliers: GemTech Optoelectronics Corp. and Applied Vacuum Coating Technologies Co., Ltd., are all scheduled to expand production in 2008. The IEK pointed out that Taiwanese makers of touch panels mainly benefit from demands generated by Chinese suppliers of generic handsets who make considerable use of such parts. As the demand for handsets in the Chinese market expected to exceed 100 million units, with 60-70% being Taiwan-made touch panels, makers on the island are forecast to gain approximately 70% market share in 2007. The global production of touch panels in 2006 totalled USD 1.028 billion, to which Taiwan contributed 38%, followed by Japan 28%, North America 17%, China 13% and Korea with 4%. With such a high demand for touch panels in 2007 but a limited supply of ITO film, the price of the product remains USD 1 per two inches, with production value expected to rise by 50% to USD 1.5 billion. As suppliers of related raw materials, such as Japanese Nitto Denko Corporation, speed up production lines to ensure supply, the price of touch panels could fluctuate, which, in turn, could also impact the growth of the production value in the sector to decrease to 35% in 2008.