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LCD Driver IC In The First Quarter May Follow The Panel to Improve IC Pricing 5 to 10%

Categories: Industry DynamicStars: 3Stars Visit: - Release time: 2018-01-17 10:01:00
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 LCD Driver IC In The First Quarter May Follow The Panel to Improve IC Pricing 5 to 10%


    With the rising demand for Internet of Things (IoT), automotive electronics and smart home, the demand for chips such as power management ICs and microcontrollers (MCUs) has risen and the number of chipsets driven to LCD driver ICs of 8-inch wafer foundries has been lifted. According to the latest observation of WitsView, a photoelectric research company of the state science and technology branch, the first quarter of the LCD driver IC factory may increase the IC quotation by 5-10% to the panel factory to reflect the rising cost due to the improvement of 8-inch wafer foundry costs by the foundry. pressure.

    As the prices of 8-inch semiconductor silicon wafers in the first quarter have risen and the key equipment of the 8-inch fab has been out of stock and the supply of used equipment has fallen short of demand, the foundries have been unable to aggressively expand the foundry capacity of 8-inch wafers in the short term. However, with the continuous increase in the demand of the MCU, power management IC (PMIC) and fingerprint identification IC, the 8-inch foundry production capacity is tight. As a result, foundries have informed customers that they will step up the 5% to 10% price of 8-inch foundry in the first quarter.

    WitsView said that due to the shortage of upstream silicon wafer short period of time is still no solution, the second half of 2017, foundries have adjusted the 8-inch wafer fab product mix, hoping to maximize profits, Round foundry prices, but also to reduce the price of LCD driver IC low volume.

    In recent years due to the price competition of the panel makers, LCD driver IC prices fell sharply, has become synonymous with low margin products in the foundry's heart, when the profit of better power management IC or the rise of MCU demand, it just gave the wafer Foundry a great opportunity to adjust, as estimated in the first quarter of 2018, wafer foundry LCD driver IC's cast will be reduced by about 20%.

    The affected LCD driver IC is mainly used in IT panels, such as HD TN / FHD TN and other low-end products. With the gradual withdrawal of the Korean industry from the low-end IT panel market, the current suppliers are currently mainly panel makers in Greater China, group startups and BOE. Even if the first quarter is the traditional off-season IT industry, brand stocking would have been relatively conservative, but the tight supply of LCD driver IC is still likely to affect the supply of the panel, the main reason is that now LCD driver IC delivery generally extended to 10 weeks or more.

    WitsView said that while there is currently no panel out-of-stock due to insufficient supply of LCD driver ICs, it is foreseeable that product scheduling flexibility within panel makers will be smaller, whether it is the need to place an urgent order or advance delivery Period, will be limited by the supply status of LCD driver IC.

    WitsView pointed out that in order to increase production capacity LCD driver IC industry is considering to switch to other process or film, or accelerate the verification of foundries in the mainland in order to obtain additional available capacity, but also continue to explore panel makers for LCD driver IC One quarter price increases the acceptance. In this regard, WitsView that panel makers may have the opportunity to agree the relevant price proposals to ensure that LCD driver IC supply.
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