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FocalTech raises TDDI and LCD driver IC prices 10%

FocalTech Systems has raised quotes for its TDDI chips and LCD driver ICs by 10%, and is mulling another double-digit price increase in the first half of 2021, according to industry sources. The price adjustments are to reflect the fabless chipmaker's rising costs amid tight foundry capacity.

Fellow Taiwan-based fabless companies, particularly those engaged in MOSFETs and other low-margin chip businesses, will follow suit raising their quotes later in the fourth quarter, the sources said.

MOSFET chip providers already made plans to raise quotes in the third quarter, but have yet to implement them, the sources noted. Nevertheless, the Taiwan-based suppliers are about to adjust their prices to reflect tight supply and rising manufacturing costs, the sources believe.

Besides FocalTech, other Taiwan-based LCD driver IC suppliers are also looking to raise their quotes, the sources continued.

Novatek Microelectronics and FocalTech have both suggested that tight capacity at their foundry partners and backend service providers may constrain their sales growth in the fourth quarter, which has raised concerns about their smaller peers' capability of obtaining support from foundries and backend houses, according to the sources.