Although the prospects of the mobile phone industry are still unclear, some IC design companies have noticed the strong demand for display driver chips (DDI) for OLED panels, and Samsung Electronics continues to outsource a certain percentage of OLED DDI production to Taiwanese companies.
According to Digitimes, the IC design company lowered its shipment forecast for ICs used in mobile devices in the first half of 2022, as mobile phone sales channels continue to give bleak forecasts. They were once “cautiously optimistic” about full-year shipments but have become more conservative, the sources said.
While handset sales are expected to decline, the percentage of handsets using OLED panels will rise in 2022. The market predicts that OLED DDI will be in short supply this year. Some observers said that the OLED DDI production line has not been greatly expanded, so the tight supply is normal.
Demand for OLED DDIs is almost unlikely to decline as customers are stockpiling products, some suppliers said. The companies said strong customer demand for OLED DDIs maybe because they anticipated supply shortages for these products.
According to sources, Taiwanese IC design companies are striving for a larger share of the OLED DDI market. Novatek has the most confidence in its OLED DDI supply. Not only is it supported by UMC’s production capacity, but it also continues to seek cooperation with SMIC, and smartphone applications are its main focus. Other manufacturers such as Qijing Optoelectronics are also increasing their OLED DDI production capacity.
It is reported that Samsung Electronics continues to outsource a certain percentage of OLED DDI production to Taiwanese companies. In addition to Novatek, other IC design companies in Taiwan have also received cooperation invitations from Samsung, the source said.
In addition to mobile phones, more and more consumer products, such as wearables and tablets, are using OLED panels. The IC design company is also exploring the high-end market for OLED TDDI, the source said.