Q1'14 Quarterly Touch Panel
`Market Analysis
`
`April 2014
`
`Copyright © 2014 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 © 2014 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 2020
`Wintek v. TPK Touch Solutions
`IPR2013-00568
`
`

`

`Important Notice
`
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`Quarterly Touch Panel Market Analysis
`Copyright © 2014 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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`

`

`Outline (1/2)
`
`Key Findings
`Report Changes
`Executive Summary
`1.0
`2.0 Methodology and Definitions
`3.0 Overall Touch Panel Market Trends
`3.1 Market Trend Summary
`3.2 Overall Market and Forecast
`4.0
`Touch Panel Market: 2014-2018 Forecast Analysis
`4.1 Forecast Analysis: Major Applications
`4.2 Forecast Analysis: Technology
`4.3 Forecast Analysis: Sensor Structures
`4.4 Forecast Analysis: ASP
`4.5 Forecast Analysis: Module Area
`4.6 Forecast Analysis: Other Applications
`5.0
`Touch Panel Market: Historical Analysis
`5.1 Historical Analysis: Applications
`5.2 Historical Analysis: Technology
`5.3 Historical Analysis: Sensor Structures
`5.4 Historical Analysis: ASP
`5.5 Historical Analysis: Regions and Makers
`
`slide 5
`slide 6
`slide 7
`slide 16
`slide 23
`slide 24
`slide 36
`slide 41
`slide 42
`slide 51
`slide 58
`slide 63
`slide 68
`slide 73
`slide 76
`slide 77
`slide 106
`slide 118
`slide 123
`slide 126
`
`Quarterly Touch Panel Market Analysis
`Copyright © 2014 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
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`

`

`Outline (2/2)
`
`New Emerging Trends
`6.0
`6.1 On-Cell Touch from Panel Makers
`6.2 Latest Cover Glass Trend
`6.3 Korean ITO and New Materials-Based Film Status
`7.0
`Key Products Value Chain Update
`7.1 Mobile Phone
`7.2 Tablet PC
`7.3 Notebook PC
`7.4 All-in-One PC
`8.0
`Regional News and Makers Update
`8.1 Taiwan
`8.2 China
`8.3 Korea
`8.4 Japan
`8.5 US, Europe, and ROW
`
`slide 129
`slide 130
`slide 137
`slide 142
`slide 148
`slide 149
`slide 152
`slide 154
`slide 157
`slide 159
`slide 160
`slide 167
`slide 173
`slide 179
`slide 185
`
`Quarterly Touch Panel Market Analysis
`Copyright © 2014 DisplaySearch. Authorized Users may not provide this report, or any part, to non-Authorized Users (internal or external) as stated in the Terms & Conditions.
`
`4
`
`

`

`Key Findings
`
` Shipment and revenue: 2013 should be the last year that the revenue Y/Y growth (27%) will
`be higher than shipment Y/Y growth (17%). This trend has lasted four years, from 2010 to
`2013. The positive results were due to projected capacitive replacing resistive. Also, the
`average touch module size in the tablet PC application increased. This year will bring lower
`revenue Y/Y growth because the notebook PC application cannot grow faster and the ASP will
`decline significantly.
` Technology: Projected capacitive has dominated from smartphone to all-in-one PCs. Its
`sufficient and aggressive supply chain has even started grabbing shipment share from
`resistive in commercial applications, but its sensor structures vary a lot.
` Add-on sensor structures: Film-based structures have been mainstream for smartphones and
`tablet PCs. Although OGS was proposed for glass-based structures, it looks as if its adoption is
`preferred on high-end models. The single layer GF1 structure is becoming critical due to the
`low-cost trend for smartphone and tablet PC entry and mid-range models.
` Embedded sensor structures: Panel makers are developing on-cell touch LCDs again due to its
`single-layer pattern. Its cannot compete with SITO and GFF on sensitivity or performance, but
`it can on cost (only one photo mask is needed). Shipment for smartphones should have
`remarkable growth in 2014, but bigger tablet PCs are less certain due to performance issues.
` New materials: The two major materials to replace ITO are metal mesh and nanowires. Some
`makers were already shipping them in 2012. TPK and O-film approach them as a high-level
`strategy. New materials have more of an advantage at 10" and above. However, the higher
`volumes of the smartphone and tablet markets make them targets from a business
`perspective.
` Optical bonding: It delivers much better optical performance than air bonding. Its only
`disadvantage is yield rate. Module makers lose profit from the lower yield rate, but optical
`bonding will still be critical. The new 5.5" Xiaomi Redmi Note is a low-cost model that adopts
`GFF and optical bonding, an improvement over the 2013 4.7" Redmi (OGS and air bonding).
`Quarterly Touch Panel Market Analysis
`Copyright © 2014 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
`
`

`

`Report Changes
`
` Quarterly Version
` In 2013, we consolidated the annual and quarterly versions of this report into single one quarterly
`version. Touch industry has matured but the market is still dynamic, so the quarterly version will
`deliver more timely and accurate observations and analysis. Also, a quarterly report can track
`important topics and offer better insights into how they are influencing the market instead of
`offering just numbers.
` Content Notes
` Survey: The historical survey is in Q1 and the top makers survey is in Q3.
` Forecast: Forecasts are adjusted based on survey results and feedback from the supply chain.
` Cost: Projected capacitive touch module costs are updated in Q2 and Q4.
` Analysis: Report gives insights into the latest market and technology trends and future
`developments.
` Supply chain: Report gives closer observations of makers and their relationships with customers.
`
`Major Content
`
`Shipment Survey
`
`Overall Makers’ Historical Shipments
`
`Top Makers’ 1H Historical Shipments
`
`Forecast Update
`
`Major Touch Applications
`
`Overall Applications
`
`Touch Module Cost
`
`Cost Modeling for Various Sizes
`
`Insight Analysis
`
`Touch Market Trend Summary
`
`Major Touch Applications
`
`Technology & Sensor Structures
`
`Emerging Tech & Market Trends
`
`Supply Chain Info
`
`Regional Makers Update
`
`Key Product Value Chain Update
`
`Q1
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`Q2
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`Q3
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`Q4
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`Quarterly Touch Panel Market Analysis
`Copyright © 2014 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
`
`

`

`1.0
`Executive Summary
`
`Copyright © 2014 DisplaySearch. Authorized Users may not provide this report, or any part, to non-Authorized Users (internal or external) as stated in the Terms & Conditions.
`
`

`

`Overall Shipment Forecast
`
` Application Trend
` IT/CE applications: Mobile phone and tablet PC have accounted for nearly 90% of
`shipments. Unfortunately, notebook PC demand is still slow and unclear. Tablet PC
`shipments surpassed notebook in 2013 to reach 250M but its future growth could be slower.
`The smart watch is starting and it is too early to estimate its popularity.
` Shipment Growth
` Positive factors: The mobile phone’s touch penetration comes from touch-enabled
`smartphones. Feature phone-based demand (e.g., Nokia’s Asha series) will decline in 2014.
`Smartphone’s percentage will be even closer to touch penetration. Tablet PC shipments will
`be near 300M in 2014 due to its affordability in emerging markets.
` Negative factors: Notebook and all-in-one PC lack convincing incentives to shape user
`behavior so their overall market growth will be limited.
`3,000,000
`
`18%
`
`16%
`
`14%
`
`12%
`
`10%
`
`8%
`
`6%
`
`4%
`
`2%
`
`0%
`
`Grand Total
`Y/Y Growth
`
`2012
`
`2013
`
`2014
`
`2015
`
`2016
`
`2017
`
`2018
`
`2,500,000
`
`2,000,000
`
`1,500,000
`
`1,000,000
`
`Shipments(000s)
`
`500,000
`
`0
`
`Shipments (000s)
`Grand Total
`Y/Y Growth
`
`2012
`1,293,362
`17%
`
`2013
`1,513,270
`17%
`
`2014
`1,737,935
`15%
`
`2015
`1,975,342
`14%
`
`2016
`2,220,403
`12%
`
`2017
`2,404,398
`8%
`
`2018
`2,528,011
`5%
`
`Quarterly Touch Panel Market Analysis
`Copyright © 2014 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
`
`

`

`Overall Revenue Forecast
`
` Application Trend
` IT/CE applications: Mobile phone revenue grew 24% Y/Y in 2013 due to a larger average
`display size that increase the ASP, but the size trend will be remarkably slower in 2014,
`giving the decline in ASP more influence over revenues. Due to the slower growth for
`smartphone and tablet PC, larger-sized applications will be critical to increasing revenues.
` Revenue Growth
` Positive factors: The growth in demand and shipments for smartphone and tablet PC will still
`be helpful at offsetting falling ASPs. The dramatic decline in ASPs for tablet and notebook PC
`during 2013-2014 left fewer makers, which could stabilize the ASP.
` Negative factors: Notebook PC did not reach expectations and the ASP declined almost 50%
`Y/Y in Q1’14. Tablet PC’s revenue growth will continue to less than its shipment growth due
`to the low-cost trend and because 7-8" has become mainstream.
`$40,000,000
`
`50%
`
`Grand Total
`Y/Y Growth
`
`40%
`
`30%
`
`20%
`
`10%
`
`0%
`
`-10%
`
`2012
`
`2013
`
`2014
`
`2015
`
`2016
`
`2017
`
`2018
`
`$30,000,000
`
`$20,000,000
`
`$10,000,000
`
`Revenues(US$000)
`
`$0
`
`Revenues (US$000s)
`Grand Total
`Y/Y Growth
`
`2012
`$23,284,705
`41%
`
`2013
`$29,642,187
`27%
`
`2014
`$29,305,581
`-1%
`
`2015
`$29,571,178
`1%
`
`2016
`$30,186,704
`2%
`
`2017
`$30,060,230
`0%
`
`2018
`$29,401,406
`-2%
`
`Quarterly Touch Panel Market Analysis
`Copyright © 2014 DisplaySearch. Authorized Users may not provide this report, or any part, to non-Authorized Users (internal or external) as stated in the Terms & Conditions.
`
`9
`
`

`

`Overall Application Forecast
`
` Positive Future
` Smartphone and tablet PC: Both applications will probably grow more than 10% Y/Y over
`the next three years and be a stable growth factor supporting the touch panel market.
` Smart watch: If Apple releases the iWatch in Q4’14 and it is popular then this application
`could experience dramatic growth in 2015.
` Uncertain Future
` Notebook and all-in-one PC: Both lack convincing scenarios to change user behavior. Also,
`they need to compete with smartphones and tablet PCs for a share of limited consumer
`budgets. The >10" detachable 2-in-1 form factor may help, but there are ASP concerns.
`
`Application (000s)
`All-in-one PC
`ATM Machine
`Automobile Monitor
`Casino Game
`Desktop Monitor
`Digital Still Camera
`Education/Training
`EPD eReader
`Factory Equipment
`Medical Equipment
`Mobile Phone
`Notebook PC
`PDA
`Point of Interest Display
`Portable Game Console
`Portable Media Player
`Portable Navigation Device
`Printer/Office Equipment
`Retail and POS/ECR
`Smart Watch
`Tablet PC
`Ticketing/Self Check-in
`Video Camera
`Others
`Grand Total
`
`2012
`2,076
`698
`22,955
`425
`444
`8,989
`819
`7,110
`13,529
`1,784
`949,817
`4,555
`12
`631
`28,954
`33,758
`24,445
`13,932
`3,038
`102
`157,479
`336
`3,502
`13,973
`1,293,362
`
`2013
`2,270
`706
`27,665
`383
`361
`5,252
`933
`8,179
`14,625
`1,768
`1,083,602
`21,027
`22
`1,154
`25,098
`12,929
`20,600
`14,928
`4,254
`1,025
`250,402
`286
`400
`15,401
`1,513,270
`
`2014
`2,503
`722
`33,017
`410
`378
`5,810
`1,006
`8,340
`15,454
`1,854
`1,236,966
`25,677
`46
`850
`22,482
`13,148
`20,280
`13,566
`3,278
`3,264
`313,592
`304
`580
`14,407
`1,737,935
`
`2015
`2,768
`738
`37,983
`431
`388
`6,124
`1,087
`8,481
`16,229
`1,945
`1,412,796
`30,252
`61
`866
`20,957
`13,292
`19,973
`12,651
`3,423
`8,885
`362,371
`293
`795
`12,552
`1,975,342
`
`2016
`3,100
`754
`47,641
`441
`399
`6,255
`1,153
`8,559
`16,942
`2,008
`1,600,809
`33,901
`78
`864
`19,790
`13,414
`19,590
`12,041
`3,572
`10,500
`404,624
`284
`1,001
`12,683
`2,220,403
`
`2017
`3,513
`768
`56,793
`444
`403
`6,381
`1,211
`8,570
`17,545
`2,057
`1,740,784
`36,555
`96
`838
`18,999
`13,556
`19,163
`11,566
`3,700
`12,366
`434,796
`276
`1,201
`12,818
`2,404,398
`
`2018
`3,877
`778
`63,592
`436
`407
`6,508
`1,272
`8,447
`17,940
`2,102
`1,841,097
`38,211
`107
`810
`18,429
`13,568
`18,964
`11,126
`3,796
`14,091
`447,882
`264
`1,346
`12,960
`2,528,011
`
`2013 Y/Y
`9%
`1%
`21%
`-10%
`-19%
`-42%
`14%
`15%
`8%
`-1%
`14%
`362%
`83%
`83%
`-13%
`-62%
`-16%
`7%
`40%
`905%
`59%
`-15%
`-89%
`10%
`17%
`
`2014 Y/Y
`10%
`2%
`19%
`7%
`5%
`11%
`8%
`2%
`6%
`5%
`14%
`22%
`108%
`-26%
`-10%
`2%
`-2%
`-9%
`-23%
`218%
`25%
`6%
`45%
`-6%
`15%
`
`2015 Y/Y
`11%
`2%
`15%
`5%
`3%
`5%
`8%
`2%
`5%
`5%
`14%
`18%
`33%
`2%
`-7%
`1%
`-2%
`-7%
`4%
`172%
`16%
`-3%
`37%
`-13%
`14%
`
`2016 Y/Y
`12%
`2%
`25%
`2%
`3%
`2%
`6%
`1%
`4%
`3%
`13%
`12%
`29%
`0%
`-6%
`1%
`-2%
`-5%
`4%
`18%
`12%
`-3%
`26%
`1%
`12%
`
`2017 Y/Y
`13%
`2%
`19%
`1%
`1%
`2%
`5%
`0%
`4%
`2%
`9%
`8%
`23%
`-3%
`-4%
`1%
`-2%
`-4%
`4%
`18%
`7%
`-3%
`20%
`1%
`8%
`
`2018 Y/Y
`10%
`1%
`12%
`-2%
`1%
`2%
`5%
`-1%
`2%
`2%
`6%
`5%
`12%
`-3%
`-3%
`0%
`-1%
`-4%
`3%
`14%
`3%
`-4%
`12%
`1%
`5%
`
`Quarterly Touch Panel Market Analysis
`Copyright © 2014 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
`
`

`

`Overall Technology Forecast
`
` Projected Capacitive
` IT/CE applications: The technology already accounts for over 70% due to the smartphone
`and tablet PC. If embedded types (capacitive in-cell and on-cell) are included, it reaches
`94.2%, with resistive at only 5.6% in 2013.
` Commercial applications: Due to sufficient supply sources, projected capacitive started to
`cannibalize share from other technologies, especially resistive. It was at 8.9% in 2012, but
`up to 15.4% in 2013. Automobile monitor will the next critical market.
` Embedded types: All existing types adopt projected capacitive but with different sensor
`structures or patterns. All embedded types come from panel makers. Since 2013, some
`panel makers have adopted single-layer patterns to increase the yield rate and approach the
`smartphone market, but they do not necessarily offer module bonding.
` Other Technologies
` Resistive: Despite a decline, it will soon have nearly 70% of commercial applications,
`especially factory, printer, and automobile monitors.
` Optical imaging: Due to a limited 20" IT/CE application market and the challenge from
`projected capacitive, its focus will be on 30" and above commercial applications.
`
`Technology (000s)
`Acoustic
`Combo
`Digitizer
`In-cell
`Infrared
`On-cell
`Optical Imaging
`Projected Capacitive
`Resistive
`Surface Capacitive
`Waveguide
`Others
`Grand Total
`
`2012
`774
`732
`1,956
`77,853
`1,665
`116,644
`1,585
`827,319
`264,405
`430
`
`1,293,362
`
`2013
`384
`164
`1,837
`144,460
`505
`182,792
`1,635
`1,034,178
`146,694
`171
`
`450
`1,513,270
`
`2014
`398
`266
`1,369
`165,455
`909
`228,839
`1,388
`1,205,342
`133,495
`132
`32
`311
`1,737,935
`
`2015
`404
`313
`1,535
`175,032
`983
`271,627
`1,451
`1,404,240
`119,267
`119
`192
`178
`1,975,342
`
`2016
`415
`339
`1,616
`180,368
`1,018
`310,627
`1,349
`1,620,383
`103,820
`95
`235
`137
`2,220,403
`
`2017
`420
`338
`1,590
`183,683
`1,039
`345,305
`1,431
`1,776,431
`93,722
`85
`255
`100
`2,404,398
`
`2018
`423
`326
`1,534
`186,351
`1,049
`372,841
`1,509
`1,877,020
`86,544
`63
`282
`71
`2,528,011
`
`2013 Y/Y
`-50%
`-78%
`-6%
`86%
`-70%
`57%
`3%
`25%
`-45%
`-60%
`
`2014 Y/Y
`4%
`62%
`-25%
`15%
`80%
`25%
`-15%
`17%
`-9%
`-23%
`
`17%
`
`15%
`
`2015 Y/Y
`2%
`18%
`12%
`6%
`8%
`19%
`5%
`17%
`-11%
`-10%
`508%
`-43%
`14%
`
`2016 Y/Y
`3%
`8%
`5%
`3%
`4%
`14%
`-7%
`15%
`-13%
`-20%
`23%
`-23%
`12%
`
`2017 Y/Y
`1%
`0%
`-2%
`2%
`2%
`11%
`6%
`10%
`-10%
`-10%
`8%
`-27%
`8%
`
`2018 Y/Y
`1%
`-4%
`-4%
`1%
`1%
`8%
`6%
`6%
`-8%
`-26%
`11%
`-29%
`5%
`
`Quarterly Touch Panel Market Analysis
`Copyright © 2014 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
`
`

`

`Mobile Phone Sensor Structures
`
` Embedded Types
` On-cell: On-cell AMOLED will depend on Samsung’s smartphone growth. On-cell TFT LCD
`could have quite positive growth in 2014 due to more cost-effective quotations and sufficient
`panel sources.
` Add-On Types
` G1F: Looks to be a temporary solution to save ITO film cost and thickness, and the
`performance can be closer to GFF. Its manufacturing is not necessarily competitive.
` GF1: Suitable cost reduction solution for entry and mid-range models. Routing of traces and
`sensitivity for larger sizes are critical issues to solve.
` OGS: Will be adopted for high-end models for thickness and optical performance
` GF2: Depends on Apple’s in-cell yield rate. If Apple fails to drive the >5" iPhone model then
`GF2 could be the most likely backup solution. If not then GF2 will have less share.
` PFF/PF: Korean makers prefer a plastic cover lens to improve the finishing yield rate.
`
`Shipment (000s) Sensor Structure
`Digitizer
`-
`In-cell
`-
`On-cell
`-
`Projected
`G1F
`Capacitive
`GF Metal Mesh
`GF Nanowires
`GF Triangle
`GF1
`GF2
`GFF
`GG DITO
`GG or SITO
`OGS/G2
`PFF
`PF
`FF
`FG
`FP
`
`Resistive
`
`Grand Total
`Y/Y Growth
`
`2012
`120
`71,235
`114,359
`883
`8
`
`13,208
`34,944
`12,100
`291,374
`100,446
`111,737
`52,351
`
`134,012
`
`13,040
`949,817
`
`2013
`365
`135,910
`180,177
`32,545
`
`225
`37,808
`86,397
`
`2014
`402
`156,477
`225,724
`35,431
`970
`1,600
`34,265
`109,858
`12,360
`355,851
`4,272
`64,106
`155,680
`8,812
`36,560
`31,866
`
`306,167
`33,362
`82,071
`112,969
`16,947
`19,570
`35,830
`150
`3,109
`2,732
`2,161
`1,083,602
`1,236,966
`1,412,796
`1,600,809
`14%
`14%
`14%
`13%
`Quarterly Touch Panel Market Analysis
`Copyright © 2014 DisplaySearch. Authorized Users may not provide this report, or any part, to non-Authorized Users (internal or external) as stated in the Terms & Conditions.
`
`2015
`434
`165,785
`267,293
`35,472
`4,802
`8,856
`29,726
`140,869
`18,787
`415,013
`
`52,300
`194,899
`5,287
`46,121
`24,990
`
`2016
`447
`170,844
`305,912
`36,393
`16,835
`28,435
`25,332
`178,220
`23,672
`462,865
`
`44,172
`230,333
`3,701
`55,217
`18,430
`
`2017
`451
`174,063
`340,299
`34,001
`33,835
`62,124
`17,220
`197,818
`27,459
`489,790
`
`2018
`451
`176,731
`367,523
`30,362
`49,736
`92,336
`10,348
`210,746
`29,656
`503,147
`
`37,252
`249,574
`
`31,976
`260,672
`
`62,300
`14,597
`
`66,837
`10,576
`
`1,740,784
`9%
`
`1,841,097
`6%
`
`2014
`10%
`15%
`25%
`9%
`
`2018
`2017
`2016
`2015
`2013
`2018
`2017
`2016
`2015
`2014
`2013
`2012
`0%
`1%
`3%
`8%
`0.0% 204%
`0.0%
`0.0%
`0.0%
`0.0%
`0.0%
`0.0%
`2%
`2%
`3%
`6%
`9.6%
`91%
`7.5% 12.5% 12.7% 11.7% 10.7% 10.0%
`8%
`11%
`14%
`18%
`12.0% 16.6% 18.2% 18.9% 19.1% 19.5% 20.0%
`58%
`-7% -11%
`3%
`0%
`0.1%
`3.0%
`2.9%
`2.5%
`2.3%
`2.0%
`1.6% 3586%
`395% 251% 101%
`47%
`0.0%
`0.0%
`0.1%
`0.3%
`1.1%
`1.9%
`2.7% -100%
`611% 454% 221% 118%
`49%
`0.0%
`0.0%
`0.1%
`0.6%
`1.8%
`3.6%
`5.0%
`-9% -13% -15% -32% -40%
`1.4%
`3.5%
`2.8%
`2.1%
`1.6%
`1.0%
`0.6% 186%
`27%
`28%
`27%
`11%
`7%
`3.7%
`8.0%
`8.9% 10.0% 11.1% 11.4% 11.4% 147%
`52%
`26%
`16%
`8%
`1.3%
`0.0%
`1.0%
`1.3%
`1.5%
`1.6%
`1.6% -100%
`17%
`12%
`6%
`3%
`16%
`30.7% 28.3% 28.8% 29.4% 28.9% 28.1% 27.3%
`5%
`10.6%
`3.1%
`0.3%
`0.0%
`0.0%
`0.0%
`0.0% -67% -87% -100%
`11.8%
`7.6%
`5.2%
`3.7%
`2.8%
`2.1%
`1.7% -27% -22% -18% -16% -16% -14%
`5.5% 10.4% 12.6% 13.8% 14.4% 14.3% 14.2% 116%
`38%
`25%
`18%
`8%
`4%
`0.0%
`1.6%
`0.7%
`0.4%
`0.2%
`0.0%
`0.0%
`-48% -40% -30% -100%
`7%
`0.0%
`1.8%
`3.0%
`3.3%
`3.4%
`3.6%
`3.6%
`87%
`26%
`20%
`13%
`14.1%
`3.3%
`2.6%
`1.8%
`1.2%
`0.8%
`0.6% -73% -11% -22% -26% -21% -28%
`0.0%
`0.0%
`0.0%
`0.0%
`0.0%
`0.0%
`0.0%
`-100%
`1.4%
`0.3%
`0.2%
`0.2%
`0.0%
`0.0%
`0.0% -76% -12% -21% -100%
`100% 100% 100% 100% 100% 100% 100%
`
`12
`
`

`

`Tablet PC Sensor Structures
`
` Glass-Based
` GG: Depending on product positioning, makers adopt an etching/printing process to save on
`production costs or use SITO patterning to shrink the bezel width. The major disadvantage
`of GG is the weight and thickness (sensor glass at 0.4 mm). As for GG DITO, some share
`will come from Apple’s iPad. Apple chose to use GF2 on its iPads in 2013.
` OGS: The major makers are TPK and Wintek. TPK has both sheet and piece type (TOL).
`Wintek focuses on sheet type. There is a rumor that Apple will consider using TOL on the
`2015 iPad. Also, the Kindle Fire and Google Nexus are two other major products using this
`structure.
` Film-Based
` GFF: We expect GFF to remain the mainstream. GFF has a more complicated structure and a
`higher BOM cost (two ITO films and one OCA inserted), but it offers better sensitivity and
`performance. Its cost reduction trend is inferior specifications.
` GF1: Still questionable due to poorer performance on 7" and above. However, due to heavy
`cost pressures, brands will probably adopt it despite a worse user experience. If GF1 is
`accepted, single-layer on-cell could grow.
` New materials: Depends on TPK and O-film’s actions.
`
`Shipment (000s) Sensor Structure
`Combo
`-
`Digitizer
`-
`On-cell
`-
`Projected
`G1F
`Capacitive
`GF Metal Mesh
`GF Nanowires
`GF1
`GF2
`GFF
`GG DITO
`GG or SITO
`OGS/G2
`FF
`FG
`
`Resistive
`
`Grand Total
`Y/Y Growth
`
`2012
`511
`908
`565
`2,043
`
`2013
`42
`1,028
`15
`5,509
`
`7,439
`44,421
`59,140
`28,148
`14,182
`
`122
`157,479
`
`3,200
`51,814
`115,262
`30,007
`8,552
`33,273
`1,200
`500
`250,402
`313,592
`362,371
`404,624
`59%
`25%
`16%
`12%
`Quarterly Touch Panel Market Analysis
`Copyright © 2014 DisplaySearch. Authorized Users may not provide this report, or any part, to non-Authorized Users (internal or external) as stated in the Terms & Conditions.
`
`2014
`122
`473
`15
`7,088
`1,330
`1,225
`9,920
`87,935
`154,937
`6,283
`6,603
`37,661
`
`2015
`153
`571
`29
`8,734
`5,826
`5,119
`11,904
`100,929
`176,958
`3,697
`6,161
`42,290
`
`2016
`181
`654
`43
`10,052
`10,005
`7,992
`13,332
`111,022
`196,114
`3,636
`5,884
`45,709
`
`2017
`203
`709
`55
`11,007
`12,960
`9,677
`14,666
`119,904
`209,356
`3,487
`5,359
`47,414
`
`2018
`222
`751
`61
`11,847
`14,804
`11,049
`15,546
`122,872
`214,417
`3,203
`4,886
`48,224
`
`434,796
`7%
`
`447,882
`3%
`
`2015
`2014
`2013
`2018
`2017
`2016
`2015
`2014
`2013
`2012
`25%
`0.0% -92% 192%
`0.0%
`0.0%
`0.0%
`0.0%
`0.0%
`0.3%
`21%
`0.2%
`13% -54%
`0.2%
`0.2%
`0.2%
`0.2%
`0.4%
`0.6%
`90%
`0.0% -97%
`0%
`0.0%
`0.0%
`0.0%
`0.0%
`0.0%
`0.4%
`23%
`2.6% 170%
`29%
`2.5%
`2.5%
`2.4%
`2.3%
`2.2%
`1.3%
`338%
`3.3%
`3.0%
`2.5%
`1.6%
`0.4%
`0.0%
`0.0%
`318%
`2.5%
`2.2%
`2.0%
`1.4%
`0.4%
`0.0%
`0.0%
`20%
`210%
`3.5%
`3.4%
`3.3%
`3.3%
`3.2%
`1.3%
`0.0%
`15%
`70%
`4.7% 20.7% 28.0% 27.9% 27.4% 27.6% 27.4% 597%
`14%
`34%
`28.2% 46.0% 49.4% 48.8% 48.5% 48.2% 47.9% 159%
`37.6% 12.0%
`2.0%
`1.0%
`0.9%
`0.8%
`0.7% -49% -79% -41%
`17.9%
`3.4%
`2.1%
`1.7%
`1.5%
`1.2%
`1.1% -70% -23%
`-7%
`9.0% 13.3% 12.0% 11.7% 11.3% 10.9% 10.8% 135%
`13%
`12%
`0.0%
`0.5%
`0.0%
`0.0%
`0.0%
`0.0%
`0.0%
`-100%
`0.1%
`0.2%
`0.0%
`0.0%
`0.0%
`0.0%
`0.0% 310% -100%
`100% 100% 100% 100% 100% 100% 100%
`
`2016
`19%
`14%
`52%
`15%
`72%
`56%
`12%
`10%
`11%
`-2%
`-4%
`8%
`
`2017
`12%
`8%
`26%
`10%
`30%
`21%
`10%
`8%
`7%
`-4%
`-9%
`4%
`
`2018
`9%
`6%
`12%
`8%
`14%
`14%
`6%
`2%
`2%
`-8%
`-9%
`2%
`
`13
`
`

`

`Notebook PC Sensor Structures
`
` OGS-Based
` Most balanced: If touch-enabled notebook PC demand rises quickly then after considering
`performance, the Windows 8 requirements, capacity, and the ASP trend, the best option is
`still OGS. The major OGS base for notebook PC applications is in Taiwan. Makers include
`TPK (Cando), Wintek, and AUO.
` Cost trend: Sensor patterning is the major focus for driving cost reductions. The most
`popular sizes are Gen 4.5 (730 × 920 mm) or Gen 5 (1100 × 1300 mm). The cost depends
`on the economic cutting rate. Comparing to a simple glass sensor, OGS requires an
`additional black matrix, logo printing, and cover glass finishing, which increases its cost.
` SSG: AUO shipped nearly 70K/month of its eTP in Q1’14. Its customers included Toshiba,
`Acer, and Lenovo. Regular OGS ASPs fell significantly, and the brands’ strategy may be to
`adopt OGS instead of SSG on mainstream models and non-touch designs on entry models.
` New Materials
` O-film: Promoted GFF with one layer of ITO film and one layer of metal mesh in 2013. The
`line width will be 1.8 µm in 2014 (from 2.5 µm in 2013), and its metal mesh can be used on
`all sizes, eventually replacing its existing ITO film supply chain.
` TPK: Nanowires will be ready at the end of Q2’14, mostly for mainstream smartphones.
`While the supply chain matures, the company will apply them to notebook PCs.
`
`Shipment (000s) Sensor Structure
`Combo
`-
`Digitizer
`-
`Projected
`GF Metal Mesh
`Capacitive
`GF Nanowires
`GFF
`GG or SITO
`OGS/G2
`SSG
`FF
`FG
`
`Resistive
`
`Grand Total
`Y/Y Growth
`
`2012
`216
`90
`
`576
`22
`3,543
`
`108
`
`2013
`122
`309
`1,870
`233
`1,742
`210
`14,447
`2,040
`
`2014
`144
`371
`2,757
`558
`1,957
`
`2015
`160
`415
`6,348
`3,722
`2,042
`
`17,974
`1,918
`
`15,934
`1,630
`
`2016
`157
`407
`8,818
`7,182
`1,653
`
`2017
`135
`326
`10,640
`8,681
`1,248
`
`2018
`104
`228
`11,794
`9,879
`835
`
`15,683
`
`15,526
`
`15,371
`
`4,555
`
`36,555
`8%
`
`38,211
`5%
`
`54
`21,027
`25,677
`30,252
`33,901
`362%
`22%
`18%
`12%
`Quarterly Touch Panel Market Analysis
`Copyright © 2014 DisplaySearch. Authorized Users may not provide this report, or any part, to non-Authorized Users (internal or external) as stated in the Terms & Conditions.
`
`2018
`2017
`2016
`2015
`2014
`2013
`2018
`2017
`2016
`2015
`2014
`2013
`2012
`-2% -14% -23%
`11%
`18%
`0.3% -44%
`0.4%
`0.5%
`0.5%
`0.6%
`0.6%
`4.7%
`-2% -20% -30%
`12%
`20%
`0.6% 243%
`0.9%
`1.2%
`1.4%
`1.4%
`1.5%
`2.0%
`39%
`21%
`11%
`47% 130%
`8.9% 10.7% 21.0% 26.0% 29.1% 30.9%
`0.0%
`93%
`21%
`14%
`139% 568%
`1.1%
`2.2% 12.3% 21.2% 23.7% 25.9%
`0.0%
`12%
`4% -19% -24% -33%
`8.3%
`7.6%
`6.8%
`4.9%
`3.4%
`2.2% 202%
`12.6%
`1.0%
`0.0%
`0.0%
`0.0%
`0.0%
`0.0% 855% -100%
`0.5%
`-2%
`77.8% 68.7% 70.0% 52.7% 46.3% 42.5% 40.2% 308%
`24% -11%
`0.0%
`9.7%
`7.5%
`5.4%
`0.0%
`0.0%
`0.0%
`-6% -15% -100%
`2.4%
`0.0%
`0.0%
`0.0%
`0.0%
`0.0%
`0.0% -100%
`0.0%
`0.3%
`0.0%
`0.0%
`0.0%
`0.0%
`0.0%
`100% 100% 100% 100% 100% 100% 100%
`
`-100%
`
`-1%
`
`-1%
`
`14
`
`

`

`All-in-One PC Sensor Structures
`
` Sensor Structures Considerations
` Industrial design: Projected capacitive touch is expensive, so brands are saving by adopting
`optical imaging and infrared. However, both require sensors to be embedded (CIS cameras
`and LEDs) beneath the bezel and 0.4-0.5 mm thickness, so they cannot support an edge-to-
`edge cover glass design.
` ASP concern: The cost of 23" G1G (5-point touch) was $150 in Q1’13. It is currently $75-80,
`but the cost of the module results in a $150-200 product ASP gap. It is difficult to convince
`consumers to pay a premium for Windows 8 and touch.
` Materials management: The all-in-one PC market is only 18M, and touch penetration is less
`than 15%. Brands will try to concentrate models of the same size so that they share the
`same sensor parts for better materials management. This is also why OGS has been adopted
`less.
` Critical Sensor Structures
` GG (G1G): This was the most critical structure in 2013 due to TPK (MasTouch) and Lenovo.
`To save on costs, etching/printing will replace photolithography. It is quite suitable for all-in-
`one PCs.
` Metal mesh and nanowires: Both will be options if makers can be strategic and offer brands
`lower quotations. New materials on film are helpful with materials management, weight, and
`thickness. They also allow the cover glass to be free of touch sensors.
`
`Shipment (000s) Sensor Structure
`In-cell
`-
`Infrared
`-
`Optical Imaging
`-
`Projected
`GF Metal Mesh
`Capacitive
`GF Nanowires
`GFF
`GG or SITO
`SSG
`FG
`-
`
`Resistive
`Waveguide
`Grand Total
`Y/Y Growth
`
`2,076
`
`236
`3,513
`13%
`
`248
`3,877
`10%
`
`2012
`3
`
`893
`12
`16
`110
`621
`
`421
`
`2013
`
`2014
`
`2015
`
`2016
`
`2017
`
`2018
`
`381
`230
`1,443
`527
`
`388
`
`392
`
`396
`
`1,814
`672
`
`2,083
`801
`
`2,331
`901
`
`80
`675
`15
`110
`183
`1,154
`
`53
`
`387
`324
`829
`287
`74
`392
`180
`
`2014
`
`2015
`
`2016
`
`30
`188
`225
`2,270
`2,503
`2,768
`3,100
`9%
`10%
`11%
`12%
`Quarterly Touch Panel Market Analysis
`Copyright © 2014 DisplaySearch. Authorized Users may not provide this report, or any part, to non-Authorized Users (internal or external) as stated in the Terms & Conditions.
`
`2013
`2018
`2017
`2016
`2015
`2014
`2013
`2012
`0.0% -100%
`0.0%
`0.0%
`0.0%
`0.0%
`0.0%
`0.1%
`2%
`-1%
`383%
`3.5% 15.4% 13.8% 12.5% 11.2% 10.2%
`0.0%
`43.0% 29.7% 12.9%
`8.3%
`0.0%
`0.0%
`0.0% -24% -52% -29% -100%
`0.6%
`0.7% 33.1% 52.1% 58.5% 59.3% 60.1%
`25% 5423%
`74%
`26%
`0.8%
`4.8% 11.5% 19.0% 21.7% 22.8% 23.3% 605% 161%
`83%
`28%
`5.3%
`8.1%
`3.0%
`0.0%
`0.0%
`0.0%
`0.0%
`66% -60% -100%
`29.9% 50.8% 15.7%
`0.0%
`0.0%
`0.0%
`0.0%
`86% -66% -100%
`0.0%
`0.0%
`7.2%
`0.0%
`0.0%
`0.0%
`0.0%
`-100%
`20.3%
`2.3%
`0.0%
`0.0%
`0.0%
`0.0%
`0.0% -87% -100%
`0.0%
`0.0%
`1.2%
`6.8%
`7.3%
`6.7%
`6.4%
`100% 100% 100% 100% 100% 100% 100%
`
`525%
`
`20%
`
`2017
`
`2018
`
`1%
`
`1%
`
`15%
`19%
`
`12%
`13%
`
`5%
`
`5%
`
`15
`
`

`

`2.0
`Methodology and Definition
`
`Copyright © 2014 DisplaySearch. Authorized Users may not provide this report, or any part, to non-Authorized Users (internal or external) as stated in the Terms & Conditions.
`
`

`

`Projected Capacitive Touch Key Parts
`
` Sensor: Projected capacitive sensors can be in many patterns such as diamond or stripe
`shape. Sensor electrodes (so-called "patterns") can be on the substrate (glass, plastic, or
`even the cover glass) or embedded into the display module (in-cell or on-cell touch).
` Controller and FPC: FPC and sensors are bonded together with ACF. FPC converges traces for
`the controller. Controllers have ADC and MCU functions. The chips can be bonded onto the
`FPC or host system mainboard, which is called the COB (chip on board).
` Cover glass: Almost all projected capacitive touch screens have a cover glass design. Strictly
`speaking, except in the case of OGS, it is not a functional part of the touch module. The cover
`glass material can be glass (soda lime or aluminosilicate), plastic, or sapphire.
`
`sensor pattern (electrodes)
`
`SITO bridge with insulation beneath
`
`Y: Rx, sense
`
`air bonding
`
`cover glass and
`GF2 sensor
`
`Source: ifixit.com
`
`X: Tx, drive
`
`iPad mini w/Retina Display
`
`FPC
`
`controller IC
`
`Touch Sensor with the Display
`
`Touch Controller IC
`
`Host System
`
`Cover Glass
`
`Sensor on the Substrate(s)
`
`Display
`
`Driver IC
`
`T-CON
`
`FPC
`
`ADC
`
`ADC
`
`MCU
`
`Memory
`
`Software
`Application
`
`OS / API
`Driver
`
`Application
`Processor
`
`Display
`& Graphic
`
`Note: sensor can be add-on type as a separate part or embedded into the display.
`
`Quarterly Touch Panel Market Analysis
`Copyright © 2014 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
`
`

`

`Projected Capacitive Sensor Structures
`
` Naming rule for projected capacitive sensor structures: The first (G) refers to the cover glass
`(plastic or sapphire) and the other letters refer to details of the structure. Sensor structures
`are very complicated and have many conventional names.
` DITO and SITO: Double-sided or single-sided ITO describe the location of the X-Y ITO
`electrodes on a single sensor substrate. SITO usually means there is a (metal) bridge cross to
`insulate the X-Y electrodes (using a photolithography line).
` OGS: The one-glass solution was called sensor on cover. Because there is only one side left
`for sensor patterning, OGS usually adopts a SITO pattern.
` GF1 has a single film layer with multi-touch. It is also known as the caterpillar pattern.
` G1F has the electrodes separately located on the cover glass and film.
` GF∆ has a triangular pattern unit to support gesture touch.
`
`Sensor
`Structure
`Also Known As
`
`(G)GG
`
`(G)G SITO
`
`GGG
`
`GG
`
`2
`Substrate #
`Substrate
`Material Glass/Glass
`Glass #1
`Y Electrode
`X Electrode
`Glass #2
`
`Remarks
`
`almost none
`
`1
`Glass
`Glass: top
`Glass: top
`SITO bridge
`for insulation
`
`OGS
`
`(G)1F
`
`OGS, G2
`
`G1F, GFM
`
`(G)G DITO
`GG,
`DITO Glass
`2
`1
`1
`Glass/Film
`Glass
`Glass
`Glass: bottom Glass: bottom
`Glass: top
`Glass: bottom Glass: bottom Film: top
`SITO bridge
`for insulation
`
`(G)FF
`
`GFF
`
`2
`Film/Film
`Film #1
`Film #2
`
`GF1
`
`(G)F DITO (G)F Single
`GF2,
`DITO film
`1
`Film
`Film: top
`Film: bottom
`
`1
`Film
`Film: top
`Film: top
`traces
`insulation
`
`(G)F
`Triangle
`GF∆
`
`1
`Film
`Film: top
`Film: top
`no bridge,
`no insulation
`
`Cover Glass
`Y Lines
`Glass
`Adhesive
`X Lines
`Glass
`
`Cover Glass
`X-Y Lines
`Glass
`
`Cover Glass
`Y Lines
`Glass
`X Lines
`
`Cover Glass
`X-Y Lines
`
`Note: SSG is similar to OGS but a simple sensor glass
`without cover glass finishing and shaping.
`
`Cover Glass
`Y Lines
`Adhesive
`X Lines
`Film
`
`Cover Glass
`Y Lines
`Film
`Adhesive
`X Lines
`Film
`
`Cover Glass
`Y Lines
`Film
`X Lines
`
`Cover Glass
`X-Y Lines
`Film
`
`Cover Glass
`Δ Pattern
`Film
`
`Quarterly Touch Panel Market Analysis
`Copyright © 2014 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
`
`

`

`Related Terminology: Touch Module
`
` Touch module: Consists of a touch sensor, controller, and FPC. Strictly speaking