Touch Panel Sector．J.P.Morg

After prolonged oversupply and margin decline, we now expect over-supply in the touch panel industry to reverse on the back of the launch of Windows 8 along with low-cost tablet PCs.Our analysis suggests the demand from touch-on-PC and ever-growing tablet would outstrip realistic mid/large-size touch panel supply.This would likely create tight supply in 4Q12 onwards especially for One-Glass-Solution ("OGS") capacity.We believe TPK stands out in this trend.Other touch panel makers could also see spill-over effect in 2H12.