Nowadays, devices with capacitive touch sensors are more and more popular in our daily life. So far, engineers have mostly designed such sensors on a trial-and-error basis. This thesis introduces an efficient and systematic methodology for design, analysis, and optimization of capacitive Touch Sensor Panels (TSPs). It incorporates hybrid quasi-static/circuit simulations and applications of localization algorithms. An approach for optimizing electrode patterns of TSPs is also proposed. Pattern Search (PS) algorithm is applied to search for a TSP electrode pattern that provides high touch response and high localization accuracy. The optimized TSP has been validated by robust measurements using a Field Programmable Gate Array (FPGA) controller...