Touch screens have long been a part of the digital age, as evidenced by the prevalence of interactive kiosk systems and automated teller machines that allow users to interact with devices through an intuitive interface. The first major application of the technology in consumer electronics was in personal digital assistants in the 1990s. The surging popularity of smartphones, or handsets that also function as miniature personal computers, and the upcoming launch of Windows 7 are expected to generate another wave of demand for touch screens.
According to a report released in May by the U.S.-based market research firm DisplaySearch Inc., global shipments of touch panels totaled 468 million units in 2008, or 52 percent more than in 2007. The research firm predicts a much lower growth rate of 3.3 percent in 2009, due to the continuing effects of the global economic downturn. Output value amounted to US$3.6 billion last year. With larger-size devices being introduced, the number is set to increase at the strong pace of 14 percent per year to reach US$9 billion by 2015.
The major applications for touch screen technology have been in handsets, portable navigation devices and game consoles, with handsets taking the lead at 220 million units, representing 47 percent of total shipment volume.
The penetration rate in mobile phones stood at 16 percent. With its page flipping, panning, scrolling, rotating and zooming features, the iPhone by Apple Inc. revolutionized touch screen functions in 2007 and vastly increased the public’s interest in smartphones. If the trend continues, nearly 40 percent of all handsets will feature touch panels by 2015, the report said.
“Touch screens are becoming widespread due to the ease of use and intuitive interfaces they enable, which can save time and increase productivity,” said Jennifer Colegrove, director of Display Technologies at DisplaySearch, in the May report. While touch screens are becoming widespread in portable gadgets, their use in large devices, such as those used in the retail, ticketing and education sectors, is expected to register robust growth in the coming years, she added.
Taiwan, mainland China and Japan are the world’s top three producers of touch screens in terms of shipment volume, the research firm pointed out. Taiwan’s Young Fast Optoelectronics Co. Ltd. trails Nissha Printing Co. Ltd. of Japan as the world’s second-largest supplier, while J Touch Corp., also of Taiwan, ranks fifth, following the mainland’s EELY-ECW Technology Ltd. and Truly Electronics Manufacturing Ltd., which rank third and fourth, respectively.
Touch panels are currently used primarily in high-end handsets and smartphones, according to Young Fast Chairman T.J. Lin. He noted that an increasing number of handset makers have started to include touch screens as a standard feature of their phones. Over 80 percent of the company’s shipments now go to Samsung Electronics Co. Ltd. and LG Electronics Co. Ltd., both of South Korea, and Taiwan’s HTC Corp. Lin predicts the penetration rate in the cell phone market will reach 20 percent this year.
An equally exciting opportunity may come from the personal computer market. Windows 7, the operating system to be released Oct. 22 by Microsoft Corp., will support multi-touch functions comparable to those offered by the iPhone. The new features are so appealing that Acer Inc. Chairman J.T. Wang is predicting a surge in sales of replacement PCs in the fourth quarter of this year. Hewlett-Packard Co., Acer and Asustek Computer Inc. all have new products equipped with touch screen technology in the pipeline.
Taiwan’s thin-film-transistor liquid crystal panel makers are also set to capitalize on the trend. With their advanced manufacturing capabilities, these companies have come up with in-cell multi-touch technology that is incorporated into the LCD manufacturing process. Firms can thus produce at a lower cost touch screens that are thinner and lighter than the traditional version, as an additional sensor substrate is no longer needed.
AU Optronics Corp., the country’s largest TFT-LCD panel maker, launched its version of the touch screen panel two years ago. Hsiao Ya-wen, the company’s corporate communications director, said in a telephone interview that since 2008 AUO has been mass-producing 3-inch and 4.3-inch in-cell touch panels for mobile Internet devices, digital still cameras and portable navigation devices. The company’s 12.1-inch model is being reviewed by notebook customers, she noted.
“Compared with the traditional on-cell version, the in-cell touch panels can achieve higher performance with much richer color saturation, while at the same time reducing the thickness of display screens,” she explained. Although there are still technical difficulties to be overcome, the company is highly optimistic about the potential of the technology, she added.
Working with its subsidiary Chi Hsin Electronics Corp., Chi Mei Optoelectronics, another of Taiwan’s panel makers, launched its version of in-cell touch panels during the Flat Panel Display International 2008 exhibition held last October in Yokohama, Japan. The company has been studying the technology for years, and will start producing its 10.1-inch model for notebooks and other devices in the fourth quarter this year. Chunghwa Picture Tubes Ltd. will also start producing such panels later this year.
Write to Meg Chang at meg.chang@mail.gio.gov.tw