Samsung Electronics is likely to step up its outsourcing of OLED display driver ICs in 2022 and 2023, with Novatek Microelectronics and other Taiwan-based DDI suppliers being pinpointed as the largest beneficiary, according to market sources.
Novatek was previously contracted by Samsung to supply OLED DDIs, said the sources, adding that the South Korean vendor is looking to have more than one Taiwan-based OLED DDI supplier to satisfy its growing demand through next year.
OLED displays are being increasingly featured in handsets, tablets, wearable devices, notebooks and other consumer technology products, with Samsung gearing up for the OLED display market boom. Eyeing the potential for OLED DDI supply shortfalls, Samsung intends to rely on Taiwan-based OLED DDI suppliers for more chip availabilities, the sources indicated.
Taiwan-based DDI firms have been vying for more available 28nm fab capacities by striking long-term deals with their foundry partners over the past year, the sources said. Novatek and other Taiwan-based DDI companies are all eyeing a bigger presence in the OLED DDI segment and are also looking to participate in the automotive OLED display market. OLED DDI demand for automotive applications is poised to grow robustly, according to the sources.
The supply of OLED DDIs has become less tight as a result of disappointing handset sales thus far in 2022, but the demand outlook is promising in the long term, according to DIGITIMES Research.
