For the iPhone 5, Apple is using in-cell touch screen technology which combines the display and touch sensor into one part; however, this has reportedly led to some interference problems.
The China Times claims that Apple has already tapped Innolux, the largest LCD maker in Taiwan, for their touch-on-display technology.
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.
Notably, Innolux has been licensed to produce displays using Sharp's IGZO technology which has also been a rumored feature of the next iPhone.
Read More [via AppAdvice]