Compared to touch panel makers, TFT-LCD panel makers have advantages in terms of technology and resources as competition heats up in the touch panel industry, according to KY Lee, chairman of the BenQ Group. AU Optronics (AUO) has transformed its 4G line for touch panel production, including in-cell and binding technologies, according to Lee.

Lee indicated that AUO's 4G line can supply touch panels from 3- to 10-inch, and with increasing touch screen demand, panel makers can create better value out of the capacity from smaller production lines. Currently, several large-size panel makers are planning to produce touch panels and incorporating touch module assembly into their business, Lee added.

AUO now is developing and producing touch panels on various technologies including in-cell and binding, mainly for smartphones, Lee said, noting that tablet PCs will pick up in 2011, and boost demand of touch panels to 300-500 million units a year.