Display Driver IC Supply Chain Development (pre-order)
The increase in remote work opportunities amid COVID-19 bolstered the demand for notebook PCs in 2021 and the market enjoyed over 20% year-on-year shipment growth. This also boosted the demand for DDICs (Display Driver ICs) and led to an acute shortage of DDICs. The component shortage dampened the industry, both downstream and upstream. Since the first half of 2022, the consumer electronics market has been affected by several unfavorable factors such as the lockdowns in China due to the ongoing pandemic, the Russia-Ukraine War, and some in the global economy such as rising inflation. As a result, global demand for consumer electronics has reduced, leading to a plunge in panel prices. While DDIC suppliers are adjusting their inventory levels, foundries are also facing increasing pressure from customers who have begun to revise their orders downwards. This report provides an overview of the development of DDICs and stakeholders in the industry, and examines the capacity of foundries to look at the further development of the DDIC supply chain.
1. DEVELOPMENT OF THE DDIC MARKET
1.1 Growth in Panel Shipments Drives Demand for DDICs in 2021
1.1.1 Strong PC Market Demand from Remote Working/Learning Leads to DDIC Shortage
1.1.2 DDIC Players Benefited from the Unleashed Panel Production Capacity in China
1.2 The Global Economy Facing Demand Slowdown in the Consumer Market
1.2.1 Demand for DDICs Reduced as the PC/NB Market Demand Decreased
1.2.2 TDDI Pricing Remains a Concern due to Lackluster Smartphone Demand
2. DEVELOPMENT OF LEADING DDIC SUPPLIERS
2.1 Six Global DDIC Suppliers are among Taiwan's Top-10 IC Designers Ranking
2.2 Keeping Gross Profit Margins is Not Easy for Global DDIC Suppliers
3. CAPACITY PLANNING OF LEADING FOUNDRIES FOR DDICS
3.1 8' and 12' Fab Process Nodes for DDIC Applications
3.2 UMC, TSMC, and VIS are Major Taiwanese DDIC Suppliers and Account for 50% of the Global Capacity
3.3 Samsung to Collaborate with Taiwanese Foundries Following LCD Business Shutdown
3.4 SK Hynix Acquires Key Foundry for Korean and Chinese Markets
3.5 Nexchip Semiconductor 12' Wafers Account for Over 40% of the Global Capacity
3.6 SMIC Continues to Expand 40nm IC Production Capacity
4. LONG TERM DEMAND FOR DDICS
4.1 OLED's Share in the Smartphone Market Continuing on the Rise
4.2 Multi-display In-Vehicle Infotainment Systems to Bolster TDDI Shipments
5. MIC PERSPECTIVE
Appendix
List of Companies
1.1 Growth in Panel Shipments Drives Demand for DDICs in 2021
1.1.1 Strong PC Market Demand from Remote Working/Learning Leads to DDIC Shortage
1.1.2 DDIC Players Benefited from the Unleashed Panel Production Capacity in China
1.2 The Global Economy Facing Demand Slowdown in the Consumer Market
1.2.1 Demand for DDICs Reduced as the PC/NB Market Demand Decreased
1.2.2 TDDI Pricing Remains a Concern due to Lackluster Smartphone Demand
2. DEVELOPMENT OF LEADING DDIC SUPPLIERS
2.1 Six Global DDIC Suppliers are among Taiwan's Top-10 IC Designers Ranking
2.2 Keeping Gross Profit Margins is Not Easy for Global DDIC Suppliers
3. CAPACITY PLANNING OF LEADING FOUNDRIES FOR DDICS
3.1 8' and 12' Fab Process Nodes for DDIC Applications
3.2 UMC, TSMC, and VIS are Major Taiwanese DDIC Suppliers and Account for 50% of the Global Capacity
3.3 Samsung to Collaborate with Taiwanese Foundries Following LCD Business Shutdown
3.4 SK Hynix Acquires Key Foundry for Korean and Chinese Markets
3.5 Nexchip Semiconductor 12' Wafers Account for Over 40% of the Global Capacity
3.6 SMIC Continues to Expand 40nm IC Production Capacity
4. LONG TERM DEMAND FOR DDICS
4.1 OLED's Share in the Smartphone Market Continuing on the Rise
4.2 Multi-display In-Vehicle Infotainment Systems to Bolster TDDI Shipments
5. MIC PERSPECTIVE
Appendix
List of Companies
LIST OF TABLES
Table 1 Taiwan's Top-10 IC Designers Ranking in 2021
Table 1 Taiwan's Top-10 IC Designers Ranking in 2021
LIST OF FIGURES
Figure 1 Days Inventory Outstanding of Leading Taiwanese DDIC Suppliers, 1Q 2020 – 1Q 2022
Figure 2 The Top-Five Customers of Nexchip Semiconductor and Their Contribution, 2019-2021
Figure 1 Days Inventory Outstanding of Leading Taiwanese DDIC Suppliers, 1Q 2020 – 1Q 2022
Figure 2 The Top-Five Customers of Nexchip Semiconductor and Their Contribution, 2019-2021
