This study describes a new module that uses micro electrochemical machining, and a new design of a convex-shaped tool, in a precision reclamation process to remove defective Indium-tin-oxide (ITO) nanostructures from the optical PET diaphragm surfaces of a digital-paper display. This process takes very little time to remove the ITO layers easily and cleanly and is highly efficient both technically and economically. A small end radius of the cathode or a thin cathode of the bulge-form tool takes less time for the same amount (20 nm) of ITO removal. A large diameter of the cathode of the bulge-form tool combined with a small gap between the cathode and the workpiece corresponds to a higher removal rate of ITO. A high rotational speed of the bulge-form tool can also improve dregs discharge and allows a higher feed rate of the optical PET diaphragm. This higher feed rate combined with enough voltage results in a shorter machining time.