In addition to its touch panel module plant in Nanjing, China, HannStar Display has recently started to set up production lines for glass thinning process and color lenses, and is scheduled to start mass production in the second half of 2011.

HannStar expects touch panel revenues to account for about 20% of its total revenues in 2011.

HannStar's Nanjing plant started operation in the fourth quarter of 2010 and is currently in trail production. Monthly capacity of the Nanjing plant is about 1.4 million touch modules, and it can produce 7- to 11-inch medium-size. and 3.5-inch and larger handset touch panel modules.

However, it is understood that HannStar's Nanjing plant has already begun mass production. Initial production was not large due to seasonality, but the company expects utilization rates to improve at the end of the first quarter of 2011 as orders return after the Lunar New Year holiday.

In addition to backend touch panel module production, HannStar is also planning to setup capacity for about 50,000 color filters in-house for on-cell touch sensor production.