In 2024, a ‘transformative shift’ in the display driver IC (DDIC) industry is anticipated, according to TrendForce. This shift will be driven by increasing demand for DDICs, particularly from the TV, gaming monitor, and notebook markets. Despite the rising demand, prices for DDICs are expected to decrease. This trend is attributed to the emergence of Chinese foundries with competitive pricing strategies, which are poised to become key players. These foundries are taking advantage of government-backed domestic policies aimed at aggressively expanding production capabilities.
Since the second half of 2023, Chinese foundries have been operating at maximum capacity due to peak season demand, and they are continuing to expand their production capacity. In contrast, Taiwanese 8-inch foundries are encountering a more challenging market landscape. Their prioritization of sustaining profitability has led to less competitive pricing and a consequent drop in utilization rates to 50%.
An anticipated surge in end-user demand in the second quarter of 2024 is expected to prompt panel makers to increase procurement, challenging the supply-demand balance. Taiwanese producers are facing a multifaceted battle, not only in terms of pricing and technology, but also in terms of their future strategic positioning and market share. This scenario underscores the complex dynamics at play in the DDIC industry as it undergoes significant changes.
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