More than 20 million on-cell TFT LCD touch panels shipped globally in the first half of 2014, after only 4.7 million were shipped in all of 2013, as the technology has been adopted in the expanding entry-level and mid-range smartphone market. By 2018, shipments of on-cell TFT LCD panels are expected to reach 129 million, according to DisplaySearch.

Embedded touch panels of all types, including in-cell and on-cell TFT LCDs, as well as on-cell AMOLED panels, accounted for 20% of all mobile handset displays in 2012, 29% in 2013, and an expected 32% in 2014. "Overall the total embedded touch panel display market is expected to grow. However, individual manufacturer shipment shares still depend on Apple and Samsung Electronics, since they are the biggest customers for in-cell TFT LCDs and on-cell AMOLED panels," said Calvin Hsieh, research director at DisplaySearch.

As the smartphone market matures, consumers have grown to expect more features and functions at lower prices, pushing Motorola, Huawei Device, and other brands to adjust their product strategies. "These brands are now cultivating the supply chain for additional touch-embedded panel sources as they adopt on-cell TFT LCD solutions to focus on entry-level and mid-range smartphone segments," Hsieh noted.

On-cell TFT LCDs with single-layer patterning are now being used to increase share in the entry-level and mid-range smartphone segments. Single-layer patterning has been adopted in the GF1 sensor structure (i.e., only one ITO film), and it is also now used for on-cell TFT LCD panels. "Innolux, Chunghwa Picture Tubes (CPT), HannStar Display, Tianma Optolectronics, and other panel makers that shipped on-cell TFT LCD panels in first-half 2014 used single-layer patterning in order to save on photomask fees and to raise yield rates," Hsieh said.

"The initial success of on-cell TFT LCD brings great hope to panel makers that are looking to compete with touch module makers," according to Hsieh. "On-cell TFT LCD certainly helps embedded types increase their share of shipments. However, add-on types still possess sufficient supplier sources, affordable prices, and flexibility."