TPK Holding, a Taiwan-based maker of touch panels, plans to have Chunghwa Picture Tubes (CPT) produce ITO touch sensors on an OEM basis, according to industry sources.

In response, both TPK and CPT declined to comment.

TPK has increased in-house production of ITO touch sensors for use in 4-inch and smaller touch panels as a percentage of total demand from 54% in the fourth quarter of 2010 to 57% currently, and medium- to large-sized touch panels from 14% to 42%. For TPK, the outsourced production by CPT will help increase supply of ITO sensors.

CPT has used 6G capacity to produce touch panel sizes up to 10-inch and shipped 11.216 million panels during the first quarter of 2011, accounting for 10.8% of total panel shipments.