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DDI makers to see 3Q22 shipments boosted by car, specialty applications

Jay Liu, Taipei; Willis Ke, DIGITIMES 0

Credit: DIGITIMES

Display driver IC (DDI) demand for handsets and other consumer devices has been sluggish and market prospects remain uncertain for the third quarter, prompting DDI makers to switch their supply focus to automotive and niche-market applications, according to industry sources.

In line with their reduced shipment projections for the year, brand handset vendors continue their significant inventory adjustments in the second quarter, heaping downward pressure on handset TDDI prices and shipment volumes, the sources said. Their demand for OLED DDI chips will at most stay flat at the first-quarter levels and is unlikely to pick up until the traditional brisk shipment season starts in the third quarter, the sources continued.

Chip vendors started moving to adjust downward their handset TDDI quotes in the first quarter, and the prices may fall further in the second quarter, the sources remarked. Even leading supplier Novatek Microelectronics has said it can only strive to improve product portfolios to bolster its revenue and profit results as some chip offerings are caught in price competition.

In terms of large-size DDIs, demand for notebook and display monitor applications will remain weak in the second quarter, except for some high-end commercial and gaming models. But TV makers are taking in slightly more DDI shipments in the quarter, especially for high-end models, to offset their relatively low shipment pull-in momentum in the preceding quarters, the sources said.

Novatek and other local peers including Himax Technologies, Raydium Semiconductor, Sitron Technology and FocalTech Systems are all maintaining strong shipments of automotive DDIs or TDDIs, which will significantly bolster their 2022 business performances, the sources stressed.

Other niche-type peripheral applications such as T-Con, high-speed transmission and resolution booster chips will also bring certain growth momentum for chip vendors, as demand for diverse high-end IT and TV applications continues to rise, the sources added.

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