Prices of touchscreen controller ICs are expected to drop 20-30% in 2014, down from current levels of US$1.2-1.5 per unit for high-end smartphones and below US$1 for entry-level models, according to industry sources.

Touchscreen controller IC prices remained rather steady in the first half of 2013 with MStar Semiconductor, FocalTech and Goodix Technology roughly sharing the market, the sources noted.

But prices have begun trending downward in the second half of 2013 due to increasing competition from newcomers as well as capacity ramps by the top-three players, the sources revealed.

Additionally, efforts by MStar to enhance its presence in the high-end segment, which was dominated by FocalTech previously, have further intensified price competition, added the sources.

Prices of Windows 8-enabled touchscreen controller ICs are also expected to drop below US$4 in 2014 from the current level of US$5, due to the entry of a number of newcomers including Novatek Microelectronics, ILi Technlogy (Ilitek), Synaptics, in addition to current suppliers Elan Microelectronics and Egalax-empia Technology (EETI), estimated the sources.