Despite strong demand for touch panels in 2010, Giantplus Technology, who has recently started mass production of touch panels, and Cando, who has transfered its 4.5G lines for touch panels and just started production in September will only start to see benefits in the fourth quarter, and are expected to turn profitable in the first quarter of 2011.

With the touch panel market just taking off and strong demand for glass-based capacitive touch panels, Giantplus and Cando still expect to see strong orders in the fourth quarter, despite the quarter being the traditional weak season.

Although Giantplus only started volume shipments of touch panels in October, orders from China's handset market and tablet PCs are better than expected. With the company expected to complete depreciation and amortization of its 3.5G line in 2011, Giantplus is expected to turn profitable in the first quarter.

Cando's overall performance in 2010 will be affected by its 4.5G plant as the transformation to touch panel production did not go as expected and the company made some major adjustments on the 4.5G lines in the third quarter and also delayed its listing on the mainboard of the Taiwan Stock Exchange (TSE). Cando's 4.5G lines recently completed the adjustments with utilization rates continuing to increase, and it expects utilization to reach 100% in the first quarter of 2011.

Monthly revenues of Cando are also improving and market sources expect Cando to break even in the fourth quarter of 2010, and may turn profitable with its 4.5G line reaching full capacity.