Taiwan touch panel makers are seeing orders increase from handset vendors such as Sony Mobile, Nokia, Google, Asustek Computer, Acer, Oppo, which will aid in increasing the makers' performances in the third quarter of 2014.

Order visibility is expected to remain strong throughout the third quarter and some makers are even unable to meet demand due to the surge from vendors who are looking to release new handsets in the second half of the year, according to industry sources.

However, the makers are reportedly unsure about their outlooks going into the fourth quarter of the year due to uncertainties from China vendors. Many China touch panel makers are continuing to expand production and offer pricing lower than Taiwan makers, which may negatively affect Taiwan makers in the future.

The increased competition from China makers has caused Taiwan makers to drop pricing for their products as well, bringing about less profits and decreased ASPs for touch modules for many makers in the market.

However, Taiwan makers are aiming to bump up production of alternative products such as metal mesh and silver nanowire technology that have flexible capabilities and can be used in wearable devices.