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Undersupply of OLED display driver ICs for use in smartphones still ongoing

Market research firm TrendForce reported on June 27 that the use of OLED panels in smartphones is likely to increase from 39.8 percent to 45 percent next year, with major brands such as Apple and Samsung Electronics increasing their use of OLED panels.

The firm pointed out that the supply of OLED display driver ICs (DDIs) is failing to catch up with the increasing demand and a further growth of the market may be hindered by this factor. At present, only TSMC, Samsung Electronics and UMC are capable of producing OLED DDIs.

The limited supply is because of the distinct characteristics of the product. OLED DDIs, which are produced mainly through 48 nm and 28 nm processes, are larger than other chips and the production volume per wafer cannot but be limited. In addition, different panel manufacturers require different specifications and OLED DDI suppliers have to meet the different specifications in supplying their products.

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