According to Japanese media reports, Sumitomo Chemical plans to build a touch sensor factory for small and medium-sized OLED panels in Chengdu, Sichuan Province, China. It is expected to be launched during April-September 2019, with an estimated investment of 2 billion to 3 billion yen, and the plant will be a base for the production of modular products that will assemble touch sensors, polarizing films and flexible boards into modules. The products are shipped to customers.
Sumitomo Chemical currently mainly sells touch sensors produced in Korea directly to customers, or commissions external companies to manufacture modular products. However, Sumitomo Chemical has decided to develop its own modular products.
According to the earnings report released by Sumitomo Chemical, due to the decline in the price of touch sensor panels and polarizing films, the revenue of the electronic chemistry department (including touch panels, polarizers, etc.) in the last quarter (April-June 2018) was lower than the same period last year. It fell 2% to 89.3 billion yen, and its profit margin increased by 30% to 4.3 billion yen due to the increase in polarized film shipments.