Market for touch screen panels looks set for big growth

With the advent of hand-held wireless devices that combine multiple functions, the market for small to medium-sized touch screen panels is set to grow.

One Taiwan-based manufacturer, PanJit International's (強茂公司) touch screen solutions division, PanJit TSD (熒茂科技), is ready to take full advantage of the growth potential in booming demand for a new generation of mobile phones and GPS devices.

PanJit International is a semiconductor manufacturer whose touch screen manufacturing division has been showing signs that it is ready to become one of the established companies in the sector.

PanJit TSD expected to see 80 percent growth in revenues last year, with after tax profits at NT$119 million (US$3.68 million), and an earning per share of NT$2.98, an analyst, who requested anonymity, said yesterday.

The strong outlook for this sector leads to estimated net profits this year of NT$218 million, an 83 percent growth year on year, and estimated earnings per share at NT$5.48, the analyst said.

Although touch screen panels have been around for some time, often in self-help kiosks and ticketing machines, it is the introduction of Apple's iPhone with small to medium-sized touch screen panels that breaks them into the consumers' electronic market.

"The demand for touch screen GPS devices looks strong for this year, but we expect even stronger growth in the mobile phones market," said Hank Lin (林昆縉), administrative department manager at PanJit TSD.

The premium mobile phones market, led by the likes of Apple and HTC (宏達電), requires capacitive touch screen panels, which are more expensive than resistive touch screen panels. However, companies that mass produce medium price range mobiles such as Nokia and Sony Ericsson may be ready to introduce new models, if touch screen supplies and inventory is not an issue, Lin said.

"We are acutely aware of the cycle of the mobile phone business, that is why we are ready to branch out into the capacitive touch screens market, where the profit margin is higher. We expect our products to be on the market by the second quarter of this year," he said.

Large-sized panels have a more uniform standard, whereas small to medium-sized panels vary widely in specifications, giving smaller, more flexible manufacturers an advantage, analysts said.