DDIC Industry Set for ‘Transformative Shift’ in 2024

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

Demand, driven by TVs, gaming monitors, and notebooks, is expected to increase while prices are anticipated to fall.

Chinese foundries with competitive pricing strategies are predicted to emerge as key players, taking advantage of government-backed domestic policies aimed at aggressively expanding production capabilities.

These foundries have been operating at full utilization since 2H23, thanks to peak season demand, and they continue to expand capacity.

In contrast, Taiwanese 8-inch foundries are facing a tougher market. Their need to sustain profitability has led to less competitive pricing and a consequent drop in utilization 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.