2024 will see a ‘transformative shift’ in the display driver IC (DDIC), says TrendForce.

Demand – pushed by TVs, gaming monitors, and notebooks – is set to increase but  prices are expected to fall.

Chinese foundries with competitive pricing strategies are expected to emerge as key players capitalising on government-backed domestic policies aimed at aggressively expanding production capabilities. 

IMG_2826-150x150.jpegSince 2H23, these foundries have been operating at full utilisation –  thanks to peak season demand – and they continue to expand capacity. 

In contrast, Taiwanese 8-inch foundries are facing a tougher market, with their need to sustain profitability leading to less competitive pricing and a consequent drop in utilisation rates to 50%.

An expected surge in end-user demand in Q2 is predicted to prompt panel makers to ramp up procurement, challenging the supply-demand  balance.

The Taiwan producers face a multifaceted battle, not just in terms of pricing and technology, but also in terms of their future strategic positioning and market share.