Large-size display driver IC (DDI) demand has been lackluster, according to sources at IC distributors, who are uncertain whether demand will pick up in the fourth quarter.
Despite the approach of the FIFA World Cup and the traditional holiday shopping season in the US and Europe, most companies in the distribution channels and supply chains are still downbeat about demand from the TV sector, said the sources.
Although Samsung Electronics is the top TV vendor globally, the Korean company has not yet stepped up its purchases of TV panels, DDI chips and other parts, the sources added.
Some IC distributors expect the ongoing inventory adjustments at Samsung will continue for about 1-2 quarters, which means that demand for TV-related DDI chips will unlikely rebound in the fourth quarter of 2022.
Since large-size TV-related DDI chips mainly use chip on film (COF) technology, Taiwan-based IC backend service providers, including Chipbond Technology, JMC Electronics and ChipMOS Technologies, are also conservative about the prospects for large-size DDIs.
Meanwhile, the backend service firms indicated that first-tier DDI vendors, including Novatek Microelectronics and Himax Technologies, are also downbeat about the outlook for large-size DDI applications in the TV and desktop computer sectors.
However, the sources noted that it remains to be seen whether Samsung will step up its purchases of large-size DDI chips in the fourth quarter as the Korean vendor continues developing new TV products.
According to data compiled by Omdia, global TV shipments declined by 6.6% on year to 92.604 million units in the first half of 2022, in which sales value slid 12.5% to US$47.5 billion.
Of the total global TV shipments in the first half, Samsung is expected to account for over 20% in unit shipments and over 31% in sale value, according to an industry estimate.
