A touch controller IC is a circuit that converts input data (a finger or an object that comes into contact with the screen's surface) into a quantifiable signal that controller software algorithms compute and analyze to determine the location of the touch on the screen. These systems are integrated into resistive touch screens and capacitive touch screens.
Market Drivers and Demand
According to OMR Research, the global touch controller IC market is projected to grow at a CAGR of 15.3% during the forecast period (2023–2029). The adoption of the touch controller IC market is anticipated to be boosted by the rising sales of premium and luxury vehicles coupled with technologically cutting-edge solutions such as navigation systems and entertainment systems. For instance, according to the 2021 report of Kia, an automotive manufacturer, the global production units of the company were 3.7 million, of which the company sold 3.1 million units globally. Besides, Hyundai Motors’ global sales in 2021 were 3.89 million units. Both Kia and Hyundai have touchscreen controllers in their automobiles. Hence this number depicts the positive growth of touchscreen vehicles in the near future as well, which will drive the touch controller IC market. In addition, the growth of two wheeler electric vehicles with touchscreens is also becoming a key driving factor for the market.
The market is also expected to develop as a result of increasing demand for smartphones, smart screen monitors, and tablets. The major contributors in the market are Asian countries, such as India, Japan, China, and others. These countries hold the highest number of smartphone manufacturing capacities across the globe. According to India’s Press Information Bureau, India is the second largest mobile phone producer in the globe, and in 2018–2019, the mobile phone production was 290,000,000 units worth $20 billion (INR 1.70 lakh crore). Moreover, as per the same source, the three new schemes by the Indian government, including the Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing, the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), and the Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme, will further boost mobile phone production in the country. According to the government, the schemes will increase mobile phone and component output to over $120.9 billion (INR 1,000,000 crore) by 2025.
Additionally, advancements in technology and screen sensitivity are projected to fuel the worldwide touch controller IC market throughout the forecast period. For instance, in November 2021, Microchip Technology Inc. announced a new maXTouch touchscreen controller. Microchip’s new maXTouch touchscreen controller offers two communication interfaces operating simultaneously, which allow a bridgeless connection to the back channel of the LVDS video link for touch information and a connection to a local microcontroller (MCU). The maXTouch KoD series consists of two variations (KD and MK) of two separate LQFP packaged chips- the 97 touch channel ATMXT2113TD-A and the 112 touch channel ATMXT2912TD-A. The KD chip types enable manufacturers to develop their own knobs using a reference given by Microchip in collaboration with BNL Bearings, whereas the MK chip variants use Panasonic's capacitive rotating Magic Knob element.
Recent Developments
The key companies in the touch controller IC market include Analog Devices Inc., Microchip Technology Inc., eGalax eMPIA Technology Inc., Sitronix Technology Corp., Cirque Corp., Elo Touch Solutions Inc., Apex Material Technology Corp., FocalTech Systems Co. Ltd., MELFAS Inc., Samsung Electronics Co. Ltd., Semtech Corp., ROHM Co. Ltd., Silicon Laboratories Inc., and others. Through different acquisitions, partnerships, new product releases, technical breakthroughs in products, and investments, these firms contribute to the market's growth. Some of the most recent market developments include-
• In January 2023, Synaptics Incorporated, a hardware and software developer for human interfaces, unveiled the SmartBridge SB7900 local dimming IC, which would allow bigger, higher-contrast, higher-resolution vehicle LCDs while reducing overall power and cost. The AEC-Q100 Grade 2-qualified solution, in conjunction with Synaptics' range of touch and display driver integrated (TDDI) ICs, offers OEMs a proven, efficient, cost-effective, automotive-grade solution. The SB7900 SmartBridge offers enhanced image quality, higher system implementation adaptability, and reduced device footprint, energy consumption, and variability for displays up to 30 inches and resolutions up to 6K. The SB7900 SmartBridge accomplishes this by incorporating the capability to drive numerous TDDI controllers with local dimming of the backlight array.
• In July 2022, STMicroelectronics N.V., a semiconductor technology developer, released the new FingerTip FTG2-SLP touchscreen controller that offers both synchronous and asynchronous display operations, enabling OEMs to retain smooth user interactions when the refresh rate varies dynamically. This new controller is particularly suited for smartphones with flexible AMOLED displays, which embed the touch-sensitive panel right on the OLED emitter layer for an exceptionally thin profile.