With Apple introducing its iPhone 3G, IC distributors are expecting more handset makers in China, including white-box handset makers, to begin including touch panels in their handsets, and the distributors are gearing up their product lineups to target such demand.

The chairman of IC distributor WT Microelectronics Wen-Tsung Cheng mentioned that in order to satisfy demand in China for advanced functionality in white-box handsets, WT has begun carrying touch screen modules based on TPO Display panels, with WT marketing the entire module to the handset makers.

Professional Computer Technology (PCT), another Taiwan IC distributor, also sees the potential for small- to medium-size LCD touch panels. The president of PCT Tim Fu said the company is negotiating the distribution rights with a small touch panel manufacturer. These small- to medium-size panels will be combined with resistive touchscreen IC and then targeted to applications including handsets, digital photo frames, and low-cost computers with panel sized smaller than 10 inches. If a distribution deal can be worked out, Fu expects the panels to begin contributing to PCT's sales in the fourth quarter of 2008.