Samsung is shifting its lower price tablet touch panel orders away from Chinese makers, as they will be running at full production capacity, said the industry sources. The South Koreans want to increase their sales of low priced tablets in 2014, as the smartphone sales are fluctuating.

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They have been using Chinese sources for low priced solutions for a while now, but the competition has become too tough. Now orders have been shifted to Korea and companies like Iljin Display or Smart Mobile Application Company, plus Taiwanese makers like EELY. Most of the low price touch panel makers in China like O-Film are held by big customers from China and Taiwan, with 20 or 30%.

O-Film gets orders from major international brands, but they are limited, because of the production capacity of the company. Right now O-Film is adjusting its product and customer strategy in order to better meet the market demand. Chinese panel makers don’t exactly have to fear losing Samsung, because they have a ton of other orders, including those from local white box makers.