Taipei, Thursday, October 23, 2014 07:05 (GMT+8)
mostly cloudy
Taipei
22°C
Digitimes Research: ITO film price drop to slow metal mesh penetration in mid-size touch applications
Jason Yang, DIGITIMES Research, Taipei [Tuesday 15 April 2014]

Metal mesh technology has entered mass production at some China-based touch panel makers, such as O-film, since the second half of 2013. It helped O-film become the largest notebook touch panel supplier in the world in the fourth quarter of 2013, thanks to its pricing advantages. Lenovo was one of the early adopters of metal mesh touch panels for its notebooks.

Following its sucess in the notebook market, O-film is looking to expand into the 8- to 10-inch medium-size segment in 2014. But Digitimes Research believes the metal mesh sector will have to step up efforts defending its stronghold at the 13- to 15.6-inch segment against traditional GFF applications starting from the second quarter of 2014, as ITO films' pricing has been dropping and resistance issues have also been improving.

ITO film's high resistance has prevented GFF touch panels from entering the 13-inch and above segment, while costs of OGS touch panels are too high.

The major drawback of metal mesh touch panels is that users are able to see the internal touch sensor on screen, but such an issue is not much of a problem for larger-size applications and therefore the technology has been considered the most suitable solution for large-size applications, such as touchscreen notebooks and all-in-one PCs.

China-based makers, such as O-film, started mass producing related touch panels in the second half of 2013 and have been gradually expanding their shares in the notebook touch panel market. However, Taiwan players, such as TPK, which originally expected demand for OGS-based notebook touch panels to pick up, have suffered losses and reduced the related capacity to minimize the damage.

Having resolved the problem with touch sensor visibility of metal mesh technology, O-film is looking to expand into the 8- to 10-inch tablet touch panel market in 2014 and enter Samsung Electronics' supply chain. However, initially, O-film will mainly supply touch panels for Intel-based white-box tablets.

Meanwhile, Japan-based Fujifilm has been reducing the price of its metal mesh touch sensors, which are shipped mainly to touch panel makers, such as Taiwan-based Young Fast and China-based Eely, for their production catering to first-tier vendors including NEC and Dell. In the future, the Japan-based maker may become a strong competitor of O-film vying for Samsung's orders.

ITO film makers, such as Japan-based Nitto Denko, have cut their ITO film prices down from an average of CNY300 per square meter originally to only CNY200 recently, with films' resistance values having also been reduced from 150-200Ohm/square to 100Ohm/square. The improvements have enabled ITO films specifically for 13- to 15.6-inch notebook touch panels and the films are already available in the market.

Although GFF technology is still unable to match metal mesh technology in the 13- to 15.6-inch large-size touch panel segment in terms of material costs, limited metal mesh-based touch panel supplies and GFF technology's high yield rate thanks to its relatively mature manufacturing process may turn some downstream vendors to adopt GFF technology instead.

For the medium-size segment, where ITO films' resistance is almost not an issue, GFF technology has advantages over metal mesh technology in terms of material costs, hindering metal mesh's expansion into the medium-size segment.

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
  • LED driver IC vendor Silergy set for brisk sales in 4Q14

    Bits + chips | 8h 45min ago

  • Sony Mobile to amend strategy for releasing flagship models

    Mobile + telecom | 8h 53min ago

  • eMemory NeoEE IP advances into automotive electronics applications

    Before Going to Press | 9h 43min ago

  • Digitimes Research: Apple turns to focus on price management to save tablet business

    Before Going to Press | 9h 56min ago

  • KYEC posts EPS NT$1.71 for January-September period

    Before Going to Press | 9h 57min ago

  • Digitimes Research: China smartphone AP shipments to enjoy growth in 4Q14 driven by LTE-based solutions

    Before Going to Press | 10h 7min ago

  • Rising IoT applications to boost demand for new memory IC parts

    Before Going to Press | 10h 9min ago

  • Winbond appoints new senior vice president for product development

    Before Going to Press | 10h 29min ago

  • LG Display announces 3Q14 performance

    Before Going to Press | 11h 2min ago

  • Huawei expressing more interest in embedded touch panel solutions

    Before Going to Press | 11h 23min ago

  • LCD TV sales in China reached 6.02 million from the Mid-Autumn period throughout the October 1 period

    Before Going to Press | 11h 29min ago

  • AUO reduces working hours for factory workers

    Before Going to Press | 11h 47min ago

  • Taiwan shipments of LCD TVs expected to reach 19.69 million in 2H14

    Before Going to Press | 11h 49min ago

  • Taiwan panel industry output value to increase 1.6-3.1% in 2015. says IEK

    Before Going to Press | 11h 49min ago

  • Everlight Electronics likely to net NT$500-600 million for 3Q14

    Before Going to Press | Oct 22, 18:53

  • Taiwan September unemployment rate down, says DGBAS

    Before Going to Press | Oct 22, 18:52

Pause
 | 
View more

Trends and forecasts for the China FPD industry, 2014-2017

CHINA FPD | Oct 6, 12:29

With China being the world's IT production center and a country with some of the strongest consumer demand, along with benefits on custom tax, funding, loans, and subsidies provided by the government, China's FPD industry continues to show strong growth. Local...

Taiwan servers and the global server market, 2014

RESEARCH EXTRAS | Oct 3, 12:19

Taiwan makers have successfully entered the supply chain of the Internet data center (IDC) industry and may contribute over 90% of the global server shipments in 2014. Combined revenues from related product lines such as motherboards, back-end assembly, storage...

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.

DIGITIMES Research Tracker Services
DIGITIMES Translation 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.