Projective capacity touch panel maker UniDisplay, an affiliate of United Microelectronics Corporation (UMC) and Unimicron Technology, on May 11 unveiled its new factory in northern Taiwan.

The factory's monthly capacity will be expanded from 1.2 million 3.5-inch equivalent panels currently to two million by the end of 2010, UniDisplay said, adding the company's monthly capacity can reach 10 million units when necessary.

UniDisplay originally planned to start capacity expansion in 2009, but the project was halted amid the global economic downturn. UniDisplay restarted its capacity expansion plan in the second half of 2009, the company said, adding that UniDisplay's touch panels have been validated by several clients.

UniDisplay said it currently can produce 2.8- to 12.1-inch touch panels, mainly for smartphones and iPad-like products, and small-size touch panels for smartphones account for a higher proportion of its revenues.

Its production plant in Taiwan is mainly for touch sensor production, while backend module production is handled by its Shenzhen plant in China, the company said.