TPK Holding will begin volume production of Touch-on-Lens touch panels in July 2012, with an initial monthly capacity of two million units for small-size and medium- to large-size, according to the company.

While panel makers are developing in-cell touch panels, TPK indicated that in-cell technology is expected to be limited to production of small-sized touch panels and Touch-on-Lens technology is competitive enough in terms of cost and yields. TPK plans to set aside a budget of US$200 million specifically for procurement of Touch-on-Lens production equipment.

TPK spent NT$14 billion (US$483 million) on capital during the first three quarters of 2011 and plans an additional capex of NT$4.0-5.0 billion for the fourth quarter, the company indicated. Capex for 2012 will be reduced to NT$10-12 billion, TPK said.

TPK posted consolidated revenues of NT$40.05 billion, gross margin of 17.3%, net profit of NT$3.63 billion and net EPS of NT$14.84 for third-quarter 2011. For January-September, TPK recorded consolidated revenues of NT$97.89 billion, gross margin of 18.3% and net EPS of NT$40.15. TPK expects its consolidated revenues for the fourth quarter to rise 0-5% on quarter but a drop in net operating profits.