Companies involved in the touch panel business have sprung up like mushrooms-as described by analysts at the survey company, in China, the number of companies manufacturing touch panels has rapidly increased. Chinese mobile phone manufacturers have increased the variety and sales of smartphones including low-priced models below 1,000 yuan, so the demand for touch panels equipped with smartphones has also expanded rapidly.
Based on this, NPD DisplaySearch of the United States judged that "China's supply of touch panels increased significantly in 2012, and it is expected that it will continue to grow substantially after 2013."
In addition to LCD panel companies, a large number of touch panel companies have gathered in the surrounding areas of Shenzhen
In China, when it comes to "panels," you may hear LCD investment more often than touch panels.
The "Twelfth Five-Year Plan", which began in China in 2011, positioned flat panel displays (FPD) as a key project in the strategic industry. Under this circumstance, with the support of the Chinese government, Chinese panel manufacturers and TV manufacturers have successively constructed liquid crystal panel production lines using large glass substrates such as the 8th generation. LCD companies are mainly concentrated in Beijing, Shanghai, Shenzhen, Chengdu and Hefei.
Among them, in addition to LCD panel-related companies in Shenzhen, many touch panel-related companies have also gathered (Figure 1). One of the reasons is that the manufacturing industry in Shenzhen is more developed than other regions in China, and it brings together a large number of companies that have the potential to enter the field of touch panels. Shenzhen was classified as a special economic zone in 1980, attracting a large number of foreign companies to settle in. Therefore, in China's cities, Shenzhen's manufacturing industry started early and developed rapidly. Subsequently, the development wave of the manufacturing industry expanded to surrounding areas such as Guangzhou and Shenzhen.
Figure 1: The area around Shenzhen is China ’s largest touch panel production base
Shenzhen and its surrounding areas, Guangdong Province and Hong Kong, are China ’s largest production bases for LCD panels and touch panels.
Another factor is that the area around Shenzhen is a large distribution center for portable terminals, and there is a huge demand for touch panels in the local area. For example, the world ’s largest electronics manufacturing service (EMS) company—Taiwan Hon Hai Precision Industry (commonly known as: Foxconn) has built a large factory in Shenzhen, and Apple ’s smartphone “iPhone†from the first generation has "IPhone 4" is made by Hon Hai family. In addition, the headquarters of Huawei Technologies, a representative communications equipment manufacturer in China, is also located in Shenzhen.
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