Demand for driver ICs used in TV and PC displays fell short of expectations as major television makers have signaled a reduction in panel purchases this quarter amid the COVID-19 pandemic, TrendForce Corp (集邦科技) said in a report on Monday.
Although there have been rush orders for computer panels over the past few weeks because of an increase in remote working, the trend does not offer clear clues as to the outlook for display driver ICs (DDIs) used in PCs and TVs, the Taipei-based researcher said.
“As a result, our previous projection of a tightening supply of large DDIs this year has so far not materialized,” it said.
TrendForce said that it expects supply constraints to reappear in the second half of this year if the pandemic is effectively contained and demand for DDIs used by major device makers recovers.
Global demand for the DDIs used in PCs, monitors and TVs is expected to reach 1.5 billion units per year in support of mainstream mini low-voltage differential signaling (LVDS) technology, TrendForce said, estimating that monthly production would total about 60,000 wafers.
The world’s major DDI manufacturers — United Microelectronics Corp (聯電), Taiwan Semiconductor Manufacturing Co (台積電) and Vanguard Semiconductor International Co (世界先進) — are phasing out mini LVDS technology in favor of higher-margin point-to-point technology, so there could be a shortage of DDIs.
Powerchip Semiconductor Manufacturing Corp (PSMC, 力積電) and China’s Nextchip Co Ltd (晶合集成) are likely to increase production of mini LVDS DDIs, but the increase would not be significant enough to satisfy demand, TrendForce said.
PSMC’s and Nextchip’s 8-inch fabs are approaching full utilization, so supply constraints are likely to reappear in the second half of the year for DDIs used in PCs and TVs, it said.
If supply constraints re-emerge, the strong demand for components used in forehead thermometers — such as power management ICs, mid to low-end complementary metal-oxide semiconductor sensors and micro-controller units — would increase pressure on chipmakers, the researcher said.
Taiwan manufactures 50 percent of the DDIs on the global market, making it the world’s largest producer, followed by South Korea with 34 percent.
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