AUO's Affiliate CANDO Likely to Tap Supply Chain of Apple's iPhone 5

Taipei, Sept. 30, 2010 (CENS)--With its cutting-edge in-cell multi touch technology, the Taiwan-based CANDO Corp., affiliated with AU Optronics Corp. and engaged in manufacturing touch panels, has been seen most likely to join the supply chain of Apple Inc.'s upcoming iPhone 5, according to industry sources.

As its in-cell multi touch technology has been well recognized by Apple, CANDO has successfully landed the client's contract orders for in-cell touch panels for use in iPad and iPad 2G, and is allegedly to supply such components for iPhone 5 now, threatening Apple's existing touch panel suppliers, including TPK Touch Solutions Inc., Wintek Corp. and Chimei Innolux Corp.

But whether CANDO can be chosen as the exclusive supplier of iPhone 5's touch panels will hinge on whether it can solve some technical problems seen in its in-cell models by the end of this year, the informed sources indicate. Otherwise, the aforementioned suppliers will remain atop Apple's candidate list.

Presently, CANDO's 3.5G and 4.5G color-filter manufacturing plants have been switched to production of touch sensors since this September, as part of the firm's efforts to snap up more contract orders from Apple. If squeezing rivals out of Apple's touch panel supplier list, CANDO will surely enjoy strong sales growths after the two plants' production switch to touch panels.

On the other hand, CANDO's Taiwanese counterpart Wintek has reportedly been crossed out from Apple's iPhone 5 touch panel list, though the news has yet to be confirmed. This will make it more possible for CANDO to be selected by Apple as a supplier of touch panels, according to industry insiders.