As market demand for entry-level and mid-range smartphones has been growing much faster than that for high-end models, the proportion of handsets adopting less costly film-based touch panels is expected to significantly increase in 2014, according to Taiwan-based supply chain makers.

　　However, competition in the thin-film touch panel segment will also become keener in 2014, with China-based suppliers such as Laibao Hi-tech and O-Film Tech likely dominating price trends, the sources noted.

　　O-Film is integrating its production lines in order to offer its reference designs, coupled with its LCM services, for smartphone production, revealed the sources, adding that the reference designs are expected to be available in the period between the second and third quarters of 2014.

　　The availability of O-Film's film-based touch panel reference designs will have a strong impact on Taiwan's touch panel and flat panel makers, the sources asserted.

　　Slow sales of high-end smartphones will also affect OGS touch panel suppliers, including TPK Holding and Wintek, in 2014, added the sources.

　　Even so, more suppliers are expected to venture into the touch panel market in 2014, including China-based BOE Technology and Tianma Micro-electronics, and Taiwan-based Chunghwa Picture Tubes (CTP), HannStar Display and Giantplus Technology, indicated the sources.