The Mobile Internet Gold Rush Causing Touch Screen Shortage

By now, everyone in the industry knows mobile internet is a good mine. As more and more iPhone and iPhone like devices spread around the world, it is creating an impact on different parts of the supply chain.

First of all are the touch screen manufacturers. These companies, located mainly in the Guangdong province in China, are finding it hard to meet the ever increasing demand for their products. A security house in China estimated the supply of small and medium size of touch screen can only meet 55% of the demand in 2011. Shipment of Lenovo’s LaPhone (Android phone) was once affected because Lenovo could not find enough touch screen suppliers.

But, this is not going to be a long-term problem. Many suppliers are expanding their facilities. Shenzhen based LaiBao Hi-tech, supplier for iPhone, has announced it planned to invest RMB251 million build a new manufacturing plant for large size touch screen (probably for iPad).