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CTOnews.com, December 10 (Xinhua)-- as demand continues to be weak in the second half of 2022, demand for display driver chips (DDIC) in 2022 will fall 12% from the same period in 2021 to 7.8 billion, according to an Omdia research report. However, Omdia expects demand for DDIC to recover and achieve 3 per cent year-on-year growth in 2023, thanks to growth in OLED and in-vehicle applications.

Forecast of DDIC demand in 2022: year-on-year decline of 12%

After two years of rapid growth, the DDIC market faces a sharp decline in 2022. According to Omdia's latest forecast in the "display driver Chip Market tracking report", the total demand for DDIC is expected to fall 12% year-on-year to 7.8 billion in 2022. Demand has fallen in all major application areas this year, including laptops, desktop displays, tablets, LCD TVs and smartphones. Demand for large-size DDIC, which accounts for 70 per cent of total DDIC demand, will fall 12 per cent year-on-year, of which LCD TV demand will fall 12 per cent. For small and medium-sized DDIC, the demand for smartphones is expected to decline by 17%, and the overall demand for small and medium-sized DDIC will drop by 12% year on year.

DDIC manufacturers recently released their investor relations report for the third quarter of 2022. Affected by the sharp decline in consumer demand, almost all IC design companies showed a double-digit decline in revenue in the third quarter of 2022, and gross profit margin fell sharply by more than 4 percentage points. Due to weak demand and long-term agreement (LTA) constraints, DDIC vendor inventory peaked in the third quarter of 2022. DDIC manufacturers did not begin to reduce foundry production until the second quarter of 2022, but new wafers put into production in the first quarter of 2022 and the second quarter of 2022 will all be produced in the third quarter of 2022 and the fourth quarter of 2022.

Figure 1:DDIC Annual demand Forecast 2023 DDIC demand Forecast: year-on-year growth of 3%

Due to weak demand for AMOLED smartphones and smartwatches, which account for more than 70 per cent of total AMOLED DDIC demand, Omdia predicts that demand for AMOLED DDIC will also fall in 2022. However, in 2023, thanks to increased demand for DDIC in areas such as OLED TVs, OLED smartphones and OLED smartwatches, and the increasing penetration of OLED DDIC in emerging applications such as game display panels, laptops, tablets, and automotive products, AMOLED DDIC demand is expected to grow by 14% year-on-year in 2023.

CTOnews.com has learned that in the LCD panel sector, although unit shipments of LCD TV panels will continue to decline in 2023, larger size and higher resolution LCD panels will drive 8 per cent growth in LCD TV DDIC demand in 2023. Total demand for DDIC for LCD panels is expected to grow by 1 per cent in 2023.

Vehicle-mounted DDIC will also drive the growth of DDIC demand in 2023, with dashboard display panels and central control display panels accounting for 80 per cent of the total demand. Demand for on-board DDIC is expected to grow by 4 per cent year-on-year in 2023.

Omdia predicts that total DDIC demand will grow by 3% year-on-year to 8 billion in 2023.

Figure 2: annual demand forecast for display driver chips (by application)

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