[News] Faced with Cost Pressure, Taiwanese DDI Suppliers Consider Opting for Chinese Foundries

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According to a report from Ijiwei, a China-based media, industry insiders have revealed that Taiwanese display driver IC (DDI) suppliers are considering shifting their chip manufacturing to China due to cost considerations, as the prices offered by chip foundries there are significantly lower than those in Taiwan.

Almost all DDI suppliers are feeling substantial pressure to reduce the prices of display driver chips in the latter half of 2023. Industry sources state that while the touch and display driver integration (TDDI) chips for smartphone screens have nearly reached cost parity, the prolonged slump in the smartphone market has led display panel customers to shift the pressure upstream along the supply chain.

The downward pricing pressure on display driver chips isn’t confined to the smartphone sector alone. Medium and large panel customers in segments like TVs and automotive displays are also requesting more substantial discounts from DDI manufacturers. However, the pressure from these sectors is somewhat less pronounced than that from the smartphone sector.

(Photo credit: Transsion)