Apple is already working with Chimei Innolux on the display technology to be used on the next-generation iPhone, reports The China Times.

Currently, the Cupertino-based company is applying in-cell screen technology on the iPhone 5. But this technology, which combines the display and the touch sensor into a single part, has led to certain interference problems.

Now, on account of these touch sensitivity issues, Apple is rumored to switch to touch panel technologies other than in-cell technology for the so-called iPhone 5S.

Specifically, Apple is said to have already tapped Innolux, which is the largest LCD maker in Taiwan.

According to rumors in the industry, displays that feature the touch-on-display technology developed by the Taiwanese company have been sent to Cupertino for testing.

Innolux’s touch-on-display technology boasts both thinness and toughness in addition to better touch sensitivity than most other touch panel designs.

Should Apple’s testing of this technology yield favorable results, Innolux is likely to become a key part in the iDevice maker’s supply chain.

These speculations corroborate a report last week claiming that Innolux has been contacted by Apple with regard to its IGZO panels. These panels are said to be mounted on this year’s iPhone, iPad, and iPad mini product refresh lineup.

Source: China Times