TDDI Shipment Volume Expected to Reach 38 Million Units
LX Semicon, DB HiTek Respond to Related Demand
Since last year, expectations are rising in the DDI (Display Driver IC) market, which had also faced a cold spell due to the display downturn. As the automotive display market grows and demand for TDDI (Touch Display Integrated Driver) increases, a foothold for recovery is being established. DDI manufacturers and design companies such as LX Semicon and DB HiTek appear to be busy responding to related demand.
DDI is a semiconductor chip that adjusts the numerous pixels composing a display to render various colors. It is an essential component for display manufacturers to produce and ship their products. TDDI integrates the touch sensor function into a general display driver chip, combining two necessary components into one to reduce volume.
Market research firm TrendForce predicted that shipments of TDDI used in automotive displays will approach 38 million units this year. This represents an increase of more than 54% compared to last year’s shipment volume of 24 million units. This growth is due to increased infotainment demand and a higher ratio of displays installed in vehicles. Shipments of automotive display panels are expected to reach 205 million units this year, a 5.1% increase from the previous year.
The DDI market, which had suffered price declines amid stagnation in the TV and smartphone markets, is now catching its breath. Over the past two years, the DDI market enjoyed an unprecedented boom as demand for TVs, mobile phones, and PCs increased due to COVID-19, but it sharply contracted starting last year as IT device shipments declined. TrendForce analyzed that due to decreased demand for TVs, PCs, and smartphones last year, DDI prices fell by 1-3% in the second quarter of this year compared to the previous quarter.
DDI companies, whose profitability had deteriorated, are seeking new opportunities.
LX Semicon, where DDI accounts for about 90% of total sales, produces and designs TDDI for automotive and mobile use. Recently, it is known to have started developing new products in cooperation with panel manufacturers. In fact, news emerged earlier this year that LX Semicon is jointly developing next-generation DDI with Samsung Display. Last year, it also showed potential for entering the automotive market by acquiring a 10.9% stake in Telechips, a domestic automotive semiconductor design company.
DB HiTek, a foundry specialized in 8-inch (200mm) wafers, has been designing some products such as DDI that adjust pixels for mobile and TV displays to express colors since 2007, producing them under its own brand. It is focusing on expanding supply of DDI for organic light-emitting diode (OLED) displays, which have higher unit prices than LCD DDIs.
However, despite growth in the TDDI market, there are also pessimistic views that it will take more time for DDI demand and prices to recover. This is because panel manufacturers, who had problems managing inventory last year, remain reluctant to stockpile products.
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