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Asustek transfering ZenFone touch panel orders return to Taiwan

  • Author:Abby
  • Release on:2015-04-20

In order to secure stable shipments and maintain profitability, Asustek Computer will shift touch panel orders from O-Film to makers in Taiwan including JTouch, TPK and Young Fast Electronics for its ZenFone 2 smartphone, according to industry sources.

Asustek has seen losses from its handset business and has increased cost control efforts going into 2015, which the sources said can be improved by shifting orders to Taiwan makers.

O-Film has reportedly struggled to meet certain quality standards for some of its products set by Asustek. The touch panel maker was one of the main providers of touch panels for the ZenFone followed by JTouch but is expected to be taken off Asustek's suppliers list in 2015.

JTouch is also expected to see increased orders of touch panels for Asustek tablets, which was reflected in the company's March 2015 performance and is should continue into the second quarter of the year.

Asustek aims to ship 25 million handsets in 2015, with eight million expected to go to China, the sources added.