Touch Panel Market Analysis
`Q4'12 Update
`
`December 2012
`
`Copyright © 2012 DisplaySearch
`Authorized Users may not provide this report, or any part, to non-Authorized Users (internal or external) as stated in the Terms & Conditions.
`
`Copyright © 2012 DisplaySearch. Authorized Users may not provide this report, or any part, to non-Authorized Users (internal or external) as stated in the Terms & Conditions.
`
`TPK 2023
`Wintek v. TPK Touch Solutions
`IPR2013-00567
`
`

`
`Important Notice
`
` Copyright © 2012 DisplaySearch, LLC, an NPD Group Company
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`Touch Panel Market Analysis
`Copyright © 2012 DisplaySearch. Authorized Users may not provide this report, or any part, to non-Authorized Users (internal or external) as stated in the Terms & Conditions.
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`2
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`

`
`Table of Contents
`
`Executive Summary
`1.0
`2.0 Methodology and Definitions
`3.0
`2012 Touch Panel Market Trend Summary
`4.0
`2012 Preliminary Top Makers Shipment Survey
`5.0
`Shipment Forecast Update for Major Applications
`6.0
`Regional Update and Supplier Analysis
`6.1
`Taiwan
`6.2
`China
`6.3
`Korea
`6.4
`Japan
`6.5
`US, Europe and ROW
`7.0
`Touch Application Trends
`8.0
`Conference Review: FPD International and CEATEC 2012
`
`slide 4
`slide 9
`slide 16
`slide 29
`slide 35
`
`slide 51
`slide 57
`slide 63
`slide 66
`slide 70
`slide 76
`slide 82
`
`Touch Panel Market Analysis
`Copyright © 2012 DisplaySearch. Authorized Users may not provide this report, or any part, to non-Authorized Users (internal or external) as stated in the Terms & Conditions.
`
`3
`
`

`
`1.0
`Executive Summary
`
`Copyright © 2012 DisplaySearch. Authorized Users may not provide this report, or any part, to non-Authorized Users (internal or external) as stated in the Terms & Conditions.
`
`

`
`Executive Summary
`
` Q4 Preliminary Survey of Regional Top Module Makers
` We perform an overall shipment survey every Q2 and a regional top makers survey every
`Q4. This allows us to summarize current market trends. Also, we use the Q4 survey results
`to revise the Q2 forecast.
` Although regional top makers do not represent all shipments, their percentages show the
`most valuable results, especially for major applications. The touch industry and major
`applications are radically different, so we have revised the forecast to reflect the latest
`trends.
` 2012 Touch Panel Market Trend Summary
` Major Applications
` Mobile Phones: Per our latest Q4 shipment forecast update, mobile phone touch
`penetration could reach almost 70% in 2012.
` Tablet PC: We expect brands’ entry tablet PC ASPs in 2013 to be only $100-149, which
`are likely to squeeze white brands. Meanwhile, tablet PC shipments will reach more than
`200M, close to the notebook PC market size, but all tablets have touch screens.
` Notebook PC: Notebook PCs with touch screens have two negative factors. The first is the
`ASP for components , not to mention the touch and CPU expense. The second is consumer
`behavior—high ASPs and work-usage behavior may hinder touch screen popularity.
` Emerging Touch Sensor Structures
` OGS is used for larger sizes, especially notebook PC applications.
` In-cell and on-cell touch has benefited from Apple and Samsung Super AMOLED use.
` GF1 will replace GFF. A single layer can support multi-touch and reduce lamination.
` GF2 debuts in the iPad mini. It reduces thickness, but still has a poor yield rate.
`
`Touch Panel Market Analysis
`Copyright © 2012 DisplaySearch. Authorized Users may not provide this report, or any part, to non-Authorized Users (internal or external) as stated in the Terms & Conditions.
`
`5
`
`

`
`Executive Summary
`
` 2012 Touch Panel Market Trend Summary
` New ITO Replacement and Processes: Tier-one module makers have been developing new
`materials and processes in 2012. The major materials are metal mesh and silver nanowire.
`We expect these processes to mature after 2013 for larger applications.
` Controller IC Trend: Asian IC suppliers have proposed cost-effective solutions to mobile
`phone brands. They are working with third-party smart phone and tablet PC’s main board
`PCBA solution providers to combine turnkey solutions. Next, they will approach tier-two and
`white brands.
` Module Lamination: Full lamination has been popular in smart phones and tablets in 2012.
`The Nexus 7, Kindle Fire HD, Surface RT, and Nook all have full lamination. Full lamination is
`expensive for notebooks, costing around $10-15 more.
` Supply Chain Impact and Integration: Before Apple adopted in-cell touch, projected
`capacitive touch sensor substrate material was clearly categorized as film or glass. The main
`evolution took place in the sensor structure (GFF, G1F, GG, or OGS). Uncertainties have
`arisen in 2012 including the impact of in-cell and on-cell, OGS process integration, higher
`gen sizes for larger applications, and new ITO replacement.
` Semi-Assembly Trend: Module makers may offer not only module lamination, but a semi-
`assembly part, especially after it is fully laminated. This means the module maker could
`extend beyond just touch-related services.
` Future Challenges: Besides competition from module makers approaching brands and
`creating major applications, panel makers also face increased competition in the in-cell
`touch business in 2012. However, only the sensor work (not module lamination) is being
`threatened. Module makers’ main business includes the sensor and lamination. Panel
`makers are competing on sensors, and system makers are competing on lamination.
`Therefore, module makers in this industry will probably face another reshuffle in the future.
`
`Touch Panel Market Analysis
`Copyright © 2012 DisplaySearch. Authorized Users may not provide this report, or any part, to non-Authorized Users (internal or external) as stated in the Terms & Conditions.
`
`6
`
`

`
`Executive Summary
`
` Q4'12 Shipment Forecast Update for Major Applications
` Mobile Phone: For Apple iPhone 5 adoption, in-cell touch (capacitive) has finally shown
`potential after the development of Sony’s Pixel Eyes. However, it is limited due to panel
`yield rate, noise, and procurement concerns. Its impact may not become remarkable until
`2015. OGS, a variation of projected capacitive, started to grab more shipment share in 2012.
`However, its flexibility is not necessarily better than GFF due to the cover glass. GFF has
`been a new low-cost variation from GF1 and GFΔ.
` Tablet PC: Although the iPad and iPad mini reached 60-70M shipments in 2012, other name
`brand tablets are growing as well (30-40M). Additionally, private label and white brand
`tablets will reach 40-50M. We expect 7" tablet PC ASPs to be further impacted by white
`brands and bigger smart phone sizes (5-6"). Thus, tablets should become cheaper or move
`to larger sizes. The sizes between 7-10" will be filled soon by notebook PCs.
` Notebook PC: The notebook PC market will generate 200M Windows-based units optimized
`for touch. The industry is eager to see if touch screens will become popular in notebook PCs.
`There are at least three factors affecting the touch penetration forecast: OGS cost and yield
`rate, few opportunities for private labels and white brands, and consumer behavior.
` OGS will likely account for more than 80% of the shipment share. However, the OGS yield
`rate (from patterning, cover glass finishing, and full lamination) is not as good as expected
`so far. Due to ASP pressure, brands will probably compromise with air bonding.
` All-in-one PC: We gave a negative forecast for some technologies because of the demanding
`requirements for touch screens running Windows 8, such as resistive, optical imaging, and
`acoustics. Projected capacitive is the best option for Windows 8, but its module cost is
`higher. For example, TPK (MasTouch) offered Lenovo a GG solution (sensors on cover glass
`and one glass substrate by etching/printing) that was $150. Compared with projected
`capacitive, optical imaging is only $90 for Windows 8.
`
`Touch Panel Market Analysis
`Copyright © 2012 DisplaySearch. Authorized Users may not provide this report, or any part, to non-Authorized Users (internal or external) as stated in the Terms & Conditions.
`
`7
`
`

`
`Executive Summary
`
` Q4 Shipment Forecast Update for Major Applications
` Mobile Phone: Maintained steady penetration growth from the smart phone trend.
` Tablet PC: Great success because of mobile computing and affordability factors.
` Notebook PC: Windows 8 effect is not yet remarkable to touch cost and user behavior.
` All-in-One PC: Like notebook PCs, the touch cost was higher than $100-150.
`
`Module Units (000s)
`Mobile Phone
`Touch Module Shipment
`Shipment Y/Y
`Mobile Phone Shipment
`Shipment Y/Y
`Touch Penetration %
`Tablet PC
`Touch Module Shipment
`Shipment Y/Y
`Touch Penetration %
`Notebook PC
`Touch Module Shipment
`Shipment Y/Y
`Notebook PC Shipment
`Shipment Y/Y
`Touch Penetration %
`All-in-one PC
`Touch Module Shipment
`Shipment Y/Y
`All-in-one PC Shipment
`Shipment Y/Y
`Touch Penetration %
`
`2011
`
`2012
`
`2013
`
`2014
`
`2015
`
`2016
`
`2017
`
`2018
`
`830,916
`
`1,651,033
`
`50.3%
`
`79,593
`
`100%
`
`3,353
`
`188,887
`
`1.8%
`
`1,719
`
`14,161
`
`12.1%
`
`1,065,250
`28%
`1,608,425
`-3%
`66.2%
`
`1,392,045
`31%
`1,801,500
`12%
`77.3%
`
`1,651,098
`19%
`1,963,201
`9%
`84.1%
`
`1,851,804
`12%
`2,083,460
`6%
`88.9%
`
`1,992,463
`8%
`2,155,000
`3%
`92.5%
`
`2,077,575
`4%
`2,198,100
`2%
`94.5%
`
`2,117,447
`2%
`2,220,081
`1%
`95.4%
`
`153,012
`92%
`100%
`
`5,066
`51%
`203,235
`8%
`2.5%
`
`1,955
`14%
`14,984
`6%
`13.0%
`
`205,343
`34%
`100%
`
`27,183
`437%
`227,120
`12%
`12.0%
`
`2,449
`25%
`16,389
`9%
`14.9%
`
`253,748
`24%
`100%
`
`53,570
`97%
`250,513
`10%
`21.4%
`
`3,178
`30%
`17,880
`9%
`17.8%
`
`300,914
`19%
`100%
`
`73,827
`38%
`269,802
`8%
`27.4%
`
`3,939
`24%
`19,472
`9%
`20.2%
`
`339,993
`13%
`100%
`
`91,369
`24%
`288,230
`7%
`31.7%
`
`4,516
`15%
`20,971
`8%
`21.5%
`
`367,321
`8%
`100%
`
`106,591
`17%
`306,664
`6%
`34.8%
`
`4,949
`10%
`22,292
`6%
`22.2%
`
`384,187
`5%
`100%
`
`115,088
`8%
`312,731
`2%
`36.8%
`
`5,268
`6%
`22,961
`3%
`22.9%
`
`Touch Panel Market Analysis
`Copyright © 2012 DisplaySearch. Authorized Users may not provide this report, or any part, to non-Authorized Users (internal or external) as stated in the Terms & Conditions.
`
`8
`
`

`
`2.0
`Methodology and Definitions
`
`Copyright © 2012 DisplaySearch. Authorized Users may not provide this report, or any part, to non-Authorized Users (internal or external) as stated in the Terms & Conditions.
`
`

`
`Methodology and Definitions
`
` Data and Analysis Sources
` Primary research includes a survey of touch panel module makers or touch sensor suppliers.
`Also, we have regular interview and discussion with key individuals in those upstream and
`downstream supply chains.
` Secondary research includes financial releases, company reports and roadmaps, press
`releases, articles, and related other information.
` Other DisplaySearch materials covering the display industry
` Report Coverage
` The report examines the touch panel module market. To provide analysis and insights, we
`also cover sensors, controller IC, adhesive, and lamination if necessary.
` Major Definitions
` Touch modules consist of touch sensor, FPC, and controller. For some technologies such as
`projected capacitive, cover glass is designed for protection and cosmetics, but it is not
`necessarily a functional part of touch screen.
` Sensors on the display (or projected screen) detect user activity. Sensors can be circuits
`(such as projective capacitive and resistive), CIS cameras (such as optical imaging), or
`piezo units (such as SAW).
` FPC (flexible printed circuit) is used to converge all traces from the sensor units.
` Controllers are responsible for the algorithms to recognize touch point(s) and gesture(s)
`then deliver the signals to the host system. Controllers have ADC and MCU functions, and
`they can be integrated as SoC or be several ADC chips with one MCU.
`
`Touch Panel Market Analysis
`Copyright © 2012 DisplaySearch. Authorized Users may not provide this report, or any part, to non-Authorized Users (internal or external) as stated in the Terms & Conditions.
`
`10
`
`

`
`Key Parts of Projected Capacitive
`
` Projected capacitive sensors can be in many patterns such as diamond shape. Touch sensor
`circuits are on the substrate as film, glass, and even cover glass or components are inside the
`display (as in-cell or on-cell).
` FPC and sensors are bonded together with ACF. FPC converges traces for controller.
` Controllers have the ADC and MCU functions. The chips can be bonded onto the FPC or host
`system mainboard, which is called COB (chip on board).
` Almost all projected capacitive touch screens have cover glass design. Strictly speaking, it is
`not a functional part of the touch screen except for OGS.
`
`sensor
`pattern units
`
`Y: Rx, sense
`
`X: Tx, drive
`
`SITO bridge
`
`sensor
`pattern units
`
`FPC
`controller
`
`Touch Sensor with the Display
`
`Touch Controller
`
`Source: ifixit.com
`
`assembly of LCD,
`bezel,cover glass
`and touch module
`
`controller
`
`FPC
`
`Kindle Fire HD
`
`Host System
`
`Cover Glass
`
`FPC
`
`Sensor on the Substrate(s)
`
`TFT LCD
`
`Driver IC
`
`T-CON
`
`ADC
`
`ADC
`
`MCU
`
`Memory
`
`Software
`Application
`
`Application
`Processor
`
`OS / API
`Driver
`
`Display
`& Graphic
`
`Touch Panel Market Analysis
`Copyright © 2012 DisplaySearch. Authorized Users may not provide this report, or any part, to non-Authorized Users (internal or external) as stated in the Terms & Conditions.
`
`11
`
`

`
`Major Sensor Structures
`
` Naming Rule for Projected Capacitive Sensor Structures: The first (G) means cover glass and
`the other letters express details structure. Structures are very complicated with many
`conventional names.
` DITO and SITO: Double-sided or single-sided ITO patterning are used to describe X-Y ITO
`electrodes’ location on the single sensor substrate. SITO usually means there is a bridge cross
`for X-Y electrodes’ insulation.
` OGS: One glass solution was previously called sensor on cover.
` G1F, GF1 and GF∆:
` G1F has the electrodes separately located on the cover glass and film.
` GF1 means single film layer with multi-touch.
` GF∆ has similar triangular pattern unit to support gesture touch (two-point simulation as
`multi-touch but not).
`
`Sensor Structure
`Also Known As
`
`Substrate #
`
`(G)GG
`
`GGG
`
`2
`
`(G)G SITO
`
`(G)G DITO
`
`OGS
`
`GG
`
`1
`
`GG, DITO Glass
`
`OGS, G2
`
`1
`
`Glass
`
`1
`
`Glass
`
`Substrate Material
`
`Glass/Glass
`
`Glass
`
`Y Electrode
`
`X Electrode
`
`Glass #1
`
`Glass #2
`
`Glass: top
`
`Glass: top
`
`Glass: bottom Glass: Bottom
`
`Glass: top
`
`Glass: bottom Glass: bottom
`
`Film: top
`
`Film #1
`
`Film #2
`
`Film: top
`
`Film: bottom
`
`SITO bridge
`for insulation
`
`X-Y Lines
`Glass
`
`Y Lines
`Glass
`X Lines
`
`SITO bridge
`for insulation
`
`Cover Glass
`X-Y Lines
`
`Remark
`
`Y Lines
`Glass
`Adhesive
`X Lines
`Glass
`
`Cover Glass
`Y Lines
`Adhesive
`X Lines
`Film
`
`Y Lines
`Film
`Adhesive
`X Lines
`Film
`
`Y Lines
`Film
`X Lines
`
`(G)F DITO
`
`(G)F Single
`
`(G)F Triangle
`
`(G)1F
`
`G1F
`
`2
`
`(G)FF
`
`GFF
`
`2
`
`Glass/Film
`
`Film/Film
`
`GF2, DITO film
`
`1
`
`Film
`
`GF1
`
`1
`
`Film
`
`Film: top
`
`Film: top
`
`traces
`insulation
`
`X-Y Lines
`Film
`
`GF∆
`
`1
`
`Film
`
`Film: top
`
`Film: top
`
`no bridge,
`no insulation
`
`Δ Pattern
`Film
`
`Touch Panel Market Analysis
`Copyright © 2012 DisplaySearch. Authorized Users may not provide this report, or any part, to non-Authorized Users (internal or external) as stated in the Terms & Conditions.
`
`12
`
`

`
`Related Terminology
`
` Sensor and Structure
` ITO film and glass: The ITO target has been sputtered onto the film or glass substrate, but it
`is not patterned for sensor circuits yet.
` Photolithography: Adopted for sensor patterning methods using either glass or film
`materials. This method can offer a 50 μm line pitch for a narrower bezel design.
` Etching/Printing: This method usually adopts etching for sensor pattern units and printing
`for traces. Compared to photolithography, it is cheaper but with a bigger line pitch.
` Trace: The conductive lines between the sensor pattern units and FPC. Traces are usually
`located around the bezel zone and hidden beneath the ink.
` In-cell: Places the sensor onto the display, especially in a backplane layer. There are various
`principles adopted, but projected capacitive is mainstream right now.
` On-cell: Places the sensor onto the display, but only makes use of upper encapsulation glass
`(or color filter glass). Usually, it has a projected capacitive SITO structure.
` Add-on type: The sensor is optional and not a part of the display. Except for in-cell and on-
`cell, other sensor structures are add-on type.
` Module Lamination
` Lamination: The touch module (sensor, FPC, and controller) is further adhered using the
`cover glass and display. If the interface between the display and sensor is by OCA or OCR,
`then it is called full lamination, optical bonding, or direct bonding. If it is by tape around the
`display edges, then it is called air bonding because the interface is full of air.
` OCA and OCR: Optical clear adhesive and optical clear resin. The former is a solid piece and
`the latter is a liquid. Conventionally, OCA needs its shape cut to fit the cover glass or sensor.
`OCR needs a UV cure, but it is easier to rework to reduce display loss.
`
`Touch Panel Market Analysis
`Copyright © 2012 DisplaySearch. Authorized Users may not provide this report, or any part, to non-Authorized Users (internal or external) as stated in the Terms & Conditions.
`
`13
`
`

`
`Related Terminology
`
` Cover Glass
` Cover Glass: An additional lens that covers the sensor and display. Its materials can be
`made of soda lime, alumino silicate, or PMMA. Cover glass is not a functional part of touch,
`except for OGS, but it has protective and cosmetic purposes.
` Ink: The color border (usually black) beneath the cover glass. Its material can be BM (black
`matrix used for LCD) or organic oil ink. Ink hides the display bezel and traces. Ink is a
`virtual set bezel for edge-to-edge cover glass.
` Edge-to-edge: The set has no bezel with a z-height around the display’s active area. The
`cover glass is flush from edge to edge. Many smart phones with projected capacitive touch
`now have an edge-to-edge cover glass design.
` Chemical strengthening: Ion exchange for Na+ and K+ in KNO3 bath. Larger sized K+
`replaces Na+ and makes the cover glass stronger. This method is used for glass <2-3 mm.
` Second strengthening: For OGS sheet type process, cover glass is not suitable to cut after
`chemical strengthening. However, second strengthening methods are used to remove micro-
`cracks after the cutting process. These methods includes physical and chemical processing
`such as HF acid use.
` One Glass Solution (OGS) describes a single glass substrate that can serve as both the cover
`glass and sensor glass. This structure can reduce the thickness and weight of the touch
`module. There are two approaches: piece type and sheet type. The former has the cover
`glass finished before the sensor patterning. The latter has the sensor patterning by the
`sheet and then is cut to pieces.
`
`Touch Panel Market Analysis
`Copyright © 2012 DisplaySearch. Authorized Users may not provide this report, or any part, to non-Authorized Users (internal or external) as stated in the Terms & Conditions.
`
`14
`
`

`
`Application Definitions
`
` Major Applications
` Mobile Phone: Devices with carrier services such as GSM and WCDMA and a size that is
`convenient as a hand-held form factor. Smart phones have advanced mobile phone usage.
`The average display size will approach 6" in 2013.
` Tablet PC: No built-in or bundled keyboard, for example, the Microsoft Surface and Asus
`Transformer do not come with a keyboard, though it can be purchased separately.
` Notebook PC: We follow the Intel Ultrabook™ definition of a built-in or bundled keyboard as
`the differentiator between a tablet PC and touch-enabled notebook PC. The keyboard can be
`built-in, like a clam-shell form factor, or separate from the set, like the detachable design,
`but it must be bundled with the purchase.
` All-in-One PC: The display and PC are one set and bundled with a keyboard. With the
`release of Windows 8, PC brands have more interest in designing touch screens for all-in-
`one PCs now.
` PMP/MP3 Player: Application’s with a display size smaller than 6" and no carrier service.
`Based on its smaller size, it is differentiated from the tablet PC. However, both applications
`may have similar operating systems and software applications.
` E-Book Reader: Adopt an EPD display. Although most tablet PCs with LCD displays have
`built-in reading software programs, they are not considered e-book readers.
`
`Touch Panel Market Analysis
`Copyright © 2012 DisplaySearch. Authorized Users may not provide this report, or any part, to non-Authorized Users (internal or external) as stated in the Terms & Conditions.
`
`15
`
`

`
`3.0
`2012 Touch Panel
`Market Trend Summary
`
`Copyright © 2012 DisplaySearch. Authorized Users may not provide this report, or any part, to non-Authorized Users (internal or external) as stated in the Terms & Conditions.
`
`

`
`Major Applications: Smart Phone
`
` Increase Touch Screen Penetration
` Almost all new smart phones are designed with touch screens. Even some feature phones
`are equipped with smaller touch screens. With smart phone growth, the touch panel market
`continues to have booming demand. Per our latest Q4 forecast update, penetration may
`reach almost 70% in 2012.
` Increasing Average Display Size
` Per our Quarterly Mobile Phone Shipment and Forecast Report, the average mobile phone
`
`display size and resolution are increasing. LTPS TFT LCD had a 36.8% share of≧4.0" in
`Q2’12, up from only 1.7% in 2010. a-Si TFT LCD had a 19.4% share of≧2.8" in 2010, and
`
`this grew to 41.2% in Q2’12.
` Phone + Tablet PC = Phablet
` Demand for bigger sizes will continue in 2013. 4.3-5.0" displays with 720 HD (1280 × 720 or
`1280 × 800) have been mainstream in premium models in 2012. We expect 5-6" with FHD
`resolution to be mainstream in 2013.
` For a successful Galaxy Note series (5.3" 1280 × 800 and 5.5" 1280 × 720), Samsung has
`proposed a phablet concept. Although Apple has a 4" iPhone 5 , demand for increasing sizes
`has further actualized this trend. Smart phones that are 5-6" will probably cannibalize 7"
`tablet PCs.
`
`Samsung Galaxy Note 2
`5.5" 1280x720
`151.1x80.5x9.4mm
`180g
`On-cell AMOLED
`
`Samsung Galaxy S3
`4.8" 1280x720
`136.6x70.6x8.6mm
`133g
`On-cell AMOLED
`
`htc One X+
`4.7" 1280x720
`134.36x69.9x8.9mm
`135g
`GFF with LTPS TFT LCD
`
`htc J Butterfly
`5" 1920x1080
`143×70.5×9.1mm
`140g
`GFF with LTPS TFT LCD
`
`Touch Panel Market Analysis
`Copyright © 2012 DisplaySearch. Authorized Users may not provide this report, or any part, to non-Authorized Users (internal or external) as stated in the Terms & Conditions.
`
`17
`
`

`
`Major Applications: Tablet PC
`
` Affordable Pricing by Google Nexus 7
` We think the most impressive tablet PC in 2012 is the Nexus 7. The Nexus 7 is the first
`announced branded tablet PC with a very affordable price, excellent performance, and OGS
`sensor structure (by Corning IOX-FS).
` Nexus 7’s $199 pricing grabbed consumer attention and dominated the market segment for
`casual mobile computing in 2012 which was first created by netbook. Consequently, many
`white brands benefited from this trend.
` White Brands’ 7" Tablet PCs
` White brands’ (including private label brands) tablet PC shipment are estimated at 40-50M
`in 2012. The ASP is only $80-100, much lower than the Nexus 7’s $199 price. Cost-down
`solutions include lower panel specs (TN type or downgrade) and cheaper sensor structures.
` Nexus 7’s OGS sensor is $18 (pure sensor without lamination), but very low-cost white
`brands can be as low as $7.2. The configuration consists of a glass sensor by
`etching/printing process, plastic film, and bezel without edge-to-edge cover glass finishing.
` Tablet PC Market After 2012
` We expect brands’ entry tablet PC ASPs in 2013 to be only $100-149, which are likely to
`squeeze white brands. Meanwhile, tablet PC shipments will reach more than 200M, close to
`the notebook PC market size, but all tablets have touch screens.
`
`White Brand:7"
`
`Resolution
`
`Sensor Structure
`
`Cover Glass
`
`Lamination
`
`Touch Cost
`
`Units/Month
`
`Better
`
`1280x800
`
`SITO
`
`edge-to-edge
`
`air gap
`
`Good
`
`1024x600
`
`G by printing
`
`edge-to-edge
`
`air gap
`
`Very Low-cost
`
`800x480
`
`G by printing
`
`bezel & plastic
`
`air gap
`
`$12
`
`$9.5
`
`$7.2
`
`0.2-0.3M
`
`1-1.2M
`
`2.5-3M
`
`Google Nexus 7 $199
`7" 1280x800;OGS with IPS LCD
`
`Kindle Fire HD $199
`7" 1280x800
`GG with IPS LCD
`
`Touch Panel Market Analysis
`Copyright © 2012 DisplaySearch. Authorized Users may not provide this report, or any part, to non-Authorized Users (internal or external) as stated in the Terms & Conditions.
`
`18
`
`

`
`Major Applications: Notebook PC
`
` Windows 8 Effect
` Compared to tablets, touch screen penetration in notebooks is still low. Windows 8, released
`on October 26, has the potential to drive this penetration rate higher, but the effects of
`Windows 8 will be not clear until Q3’13.
` Windows 8 has demanding touch screen requirements: 5-point multi-touch, 100 Hz report
`rate and 20 mm flush border from the display active area or edge-to-edge cover glass
`design. These specs make it more difficult and expensive to use Windows 8 as the OS.
`Additionally, the OS and CPU have limited sources, so white brands will be at a disadvantage.
` Growth or Uncertainty?
` Notebook PCs with touch screens have two negative factors. The first is the ASP for
`components , not to mention the touch and CPU expense. The second is consumer
`behavior—high ASPs and work-usage behavior may hinder touch screen popularity.
` OGS has become the major touch screen solution for Windows 8 notebook PCs, especially
`the sheet type process. OGS has a better balance in terms of weight, thickness, cost, and
`supply sources. However, its average cost is still high ($50-80 for 10.0-15.6") in 2012
`because of the small shipment base (5-6M) and learning curve to tune the yield rate.
` There are positive factors. The Intel Haswell platform will provide regular x86 performance
`with tablet PC-like power consumption in 2013. Brands are developing new form factors
`optimizing touch screen use. Compromising air gap can lower the yield rate and costs.
`
`Acer Aspire S7
`
`Sony Vaio Duo 11
`Asus Vivo Tab
`Touch Panel Market Analysis
`Copyright © 2012 DisplaySearch. Authorized Users may not provide this report, or any part, to non-Authorized Users (internal or external) as stated in the Terms & Conditions.
`
`Asus Taichi: dual screens
`
`Lenovo Yoga:single screen
`
`19
`
`

`
`Convergence of Smart Devices
`
` Convergence on Platform to Access Cloud
` The division between smart phones, tablets, and notebooks will no longer be meaningful in
`the near future because all of these devices will serve similar purposes, just with different
`usage scenarios, content, and screen sizes. They are all able to connect to the internet.
`Smart phone
`Tablet PC
`Notebook PC
`Smart TV
`Smart Devices
`
`Display
`
`Graphic and
`Processor
`
`Memory
`
`Broadband
`
`WLAN
`
`WPAN
`
`WVGA or HD  FHD
`
`HD  FHD or WQX
`
`HD  FHD or WQX
`
`HD or FHD  UHD
`
`28 nm ARM Cortex A9 Multiple-core
`A15 w/ similar big.LITTLE for Power Consumption
`
`22 nm Intel Haswell SoC
`64-bit Cortex A53, A57?
`
`ARM Cortex Series
`MIPS by Imagination
`
`eMMC
`
`HDD or SSD
`
`eMMC or HDD
`
`Mobile Broadband: HSPA  LTE
`
`Fixed Line: ADSL or FTTH
`
`802.11n: 100-250 Mbps @ 2.4/5 GHz  802.11ac: 1 Gbps @ 5-6 GHz
`
`NFC, Bluetooth 4.0 and Wi-Fi Direct
`
`P2P Mirroring
`
`Wi-Fi Direct based Miracast, Microsoft SmartGlass, Apple AirPlay, Intel WiDi; Uncompressed: 60 GHz, 802.11ad
`
`Location
`
`OS and
`Applications
`
`Human-Device
`Interaction
`
`GPS for Navigation and Location-based Services
`
`Android, iOS, Windows Phone
`
`Windows, Mac OS
`
`Smart Device’s OS: SDK, Electronic Distribution and Eco-system
`
`Not Clear
`
`Proprietary OS
`
`Not Clear
`
`MEMS Sensors, Touch Screen, Voice and Motion-Sensing
`
`Motion-Sensing and Voice
`
`Touch Panel Market Analysis
`Copyright © 2012 DisplaySearch. Authorized Users may not provide this report, or any part, to non-Authorized Users (internal or external) as stated in the Terms & Conditions.
`
`20
`
`

`
`Emerging Touch Sensor Structures
`
` Touch Technology for Major Applications
` Projected capacitive has been dominant in smart phones, tablet PCs, notebook PCs, and all-
`in-one PCs, but for public display and TVs, motion sensing has more potential.
` Most projected capacitive touch adopts ITO material for the sensor pattern, connected with
`silver or other metal traces. Sensor substrates can be glass or PET film. Photolithography for
`glass and film will be more important in 2012 to facilitate narrow border designs.
` OGS for Larger Sizes
` With the release of Windows 8, 10”+ touch screens are becoming more promising. However,
`there are difficulties with the sensor material’s surface impedance (better near 100 Ω/sq.),
`easily broken ITO circuits on the film substrate, and expensive costs for full lamination.
` OGS by photolithography process has been mainstream for 10”+, and this trend will last in
`2013. The OGS sheet type yield rate is affected by three factors: sensor patterning by sheet
`base, cover glass finishing with the second strengthening, and module lamination.
` For 20" sizes, such as all-in-one PCs, GG (X on one glass and Y on the cover glass) by
`etching/printing is preferred because the market size is limited (2-3M) and it is more cost-
`effective. Additionally, most photolithography patterning lines are Gen 4-5, and Gen 6 is
`better for monitor sizes. Consequently, OGS by SITO is rare for 20”+.
` OGS for tablet PCs is also suitable. The Nexus 7 is a pioneering example. For strength, name
`brands prefer alumino silicate. IOX-FS is softer and weaker than Gorilla, but more suitable
`for the OGS sheet type process because of its cutting ability after chemical strengthening.
`
`1
`
`Sensor Patterning
`by Photolithography:
`Y/R: 90-95%
`
`2
`
`Cover Glass Finishing
`and Second
`Strengthening
`Y/R: 70-80%
`
`3
`
`Touch Module
`Lamination with LCD
`Y/R: 80-95%
`
`Touch Panel Market Analysis
`Copyright © 2012 DisplaySearch. Authorized Users may not provide this report, or any part, to non-Authorized Users (internal or external) as stated in the Terms & Conditions.
`
`21
`
`

`
`Emerging Touch Sensor Structures
`
` In-Cell and On-Cell Touch
` These two emerging structures come from panel makers. On-cell touch with AMOLED is
`mature and SMD has shipped more than 100M for smart phones. However, on-cell touch
`LCD is almost gone.
` In-cell touch is applied in the Sony Xperia P and Apple iPhone 5. Although LGD, JDI, and
`Sharp manufacture 4" in-cell touch LCDs for Apple, they are not allowed to adopt the same
`technology and patents to manufacture panels for other brands.
` Difficulties for in-cell touch LCDs include changing the LCD’s internal structure (such as
`Vcom) for touch sensors and solving LCD noise interference. Panel makers can now produce
`new structures, but the noise issue is dependent upon the touch controller IC partner.
` Although both can create thinner and lighter stacks, key issues involve the business model
`and supplier source for procurement.
` Simpler GF1 to Replace GFF
` Due to OGS competition, film-based makers have proposed the G1F, but it has not become
`popular. The new GF1 (single layer with multi-touch) is ready, but it’s limited to sizes 5" and
`smaller. The main issue involves electrode insulation and bonding on the trace end. GF1 will
`probably replace GFF in smart phones because of the single layer and reduced lamination.
` GF2 Debuts in the iPad mini
` GF2 is like DITO glass, but adopts film instead of glass. The film can serve as the ASF and
`sensor substrate. However, its yield rate for 7.85" and above is not good. Compared to 9.7"
`DITO glass (>92% and $8-9 in Q4’12), 7.85" DITO film costs $10 with ~60% yield rate.
`
`Panel Maker:
`In-cell LCD and
`On-cell AMOLED
`
`Glass-based Sensor:
`GG  OGS and SITO
`
`Film-based Sensor:
`GFF  GF1 and GF∆
`
`Apple Products:
`GG  in-cell and GF2
`
`Touch Panel Market Analysis
`Copyright © 2012 DisplaySearch. Au