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Taiwan-based display driver IC (DDI) suppliers who have raised quotes by 10-15% to reflect tight supply and rising costs remain upbeat about 2021, as market conditions will still be favorable to the fabless chipmakers.
DDI suppliers including Novatek Microelectronics, Himax Technologies, Fitipower Integrated Technology, FocalTech Systems and Radium Semiconductor have seen clear order visibility through second-quarter 2021, but they have difficulty totally fulfilling shipments due to tight capacity supply at 8-inch wafer fabs and backend houses, according to industry sources.
Ever-rising foundry and backend costs have driven both large and medium-sized DDI vendors in Taiwan to raise quotes by an average of 10-15% by the end of 2020, the sources said, adding that whether the quotes will rise further in first-half 2021 will hinge on terminal market demand.
To fully fulfill orders from clients, DDI suppliers have also been seeking capacity support from 8-inch wafer fabs in Japan, Korea and Southeast Asia apart from local foundry houses. Fitipower has secured support from Sharp, while FocalTech has got extra foundry capacity at TSMC on 40nm and 55nm processes, and Sitronix Technology has won support from Powerchip Semiconductor Manufacturing, the sources said.