2024 Display Driver Chip Outlook: Prices and Volumes Bottoming Out, with 28/40nm Capacity Utilization Approaching Full Load

Key takeaway

In 2024, both volume and prices in the display driver chip market are... Bullish Bottoming Phase , revenue growth is expected to increase by only a modest year-on-year rate 0.8%.

In 2024, the global supply and demand for display driver chip wafers will remain relatively balanced, but capacity utilization rates are expected to rebound. 80% That's all.

The overall decline in display driver chip prices has narrowed, though price competition for OLED driver chips continues to intensify.

In 2024, both volume and prices in the display driver chip market are entering a bottoming-out phase, with revenue expected to grow by just 0.8% year-on-year.

After roughly two years of downturn, the consumer electronics market is gradually emerging from its slump and is expected to enter a mild recovery phase starting in 2024. However, constrained by the broader macroeconomic environment, growth momentum remains limited. As downstream demand begins to stabilize and rebound, display driver ICs (DDIC) are also anticipated to bottom out and start recovering. According to Sigmaintell Consulting, global DDIC revenue in 2024 is projected to reach approximately $11.13 billion, representing a slight year-on-year increase of about 0.8%.

Looking at it by application:

TV App: In the second half of 2024, driven by major sporting events such as the Olympics, Euro Cup, and Copa América, demand for TV applications is expected to grow. As a result, TV DDIC shipments in 2024 are projected to reach approximately 2.25 billion units, representing a year-on-year increase of about 4.0%. However, the gradual rise in adoption of Dual-gate solutions is likely to temper the growth in TV DDIC demand. Additionally, due to cost considerations, the penetration rate of OLED technology in TV applications is anticipated to expand more slowly. Under these circumstances, global demand for TV DDICs in 2024 is forecasted to remain flat or even decline slightly. That said, as higher refresh-rate technologies like 120Hz and 144Hz gain traction, the ongoing upgrade of TV DDIC technology will help push up average selling prices. Consequently, global TV DDIC revenue in 2024 is expected to climb by around 4.0% compared to the previous year.

IT Applications: In 2024, demand for display and laptop applications is entering a recovery phase, with DDIC shipments expected to grow by 4.8% and 4.0% year-on-year, respectively. Looking ahead, the long-term growth prospects for display applications remain relatively steady. Notably, the esports segment will drive modest increases in both shipment volumes and average selling prices, thanks to rising demand for high-resolution, high-refresh-rate monitors. Meanwhile, laptop applications are poised for accelerated growth starting from 2026-2027, as AI-powered PCs gradually stimulate replacement demand among consumers.

Tablet app: In 2022-2023, tablet demand weakened due to broader macroeconomic challenges, leading to two consecutive years of declining DDIC shipments. However, in 2024, while smartphone applications for LTPS panels experienced reduced demand—prompting panel suppliers to shift LTPS technology toward mid-size applications—Apple’s iPad Pro began adopting OLED technology. Driven by these factors, tablet DDIC shipments are expected to stabilize and rebound, with a year-on-year increase of approximately 5.5%.

Smartphone app: Overall smartphone shipments are expected to reach approximately 1.49 billion units in 2024, representing a year-on-year increase of about 2.5%. Among these, demand for OLED applications continues to grow, with mobile phone OLED DDIC shipments projected to rise by roughly 20.6% compared to the previous year. Meanwhile, demand for LCD applications is declining, with shipments anticipated to drop by around 14.2% year-on-year.

In 2024, the global supply and demand for display driver chip wafers will remain relatively balanced, but capacity utilization is expected to rebound to above 80%.

In 2024, the overall supply-demand dynamics in the DDIC industry are expected to continue improving, with demand across various applications gradually recovering at a moderate pace. Sigmaintell Consulting forecasts that global DDIC shipments will reach approximately 7.74 billion units in 2024, representing a year-on-year increase of about 4.9%. However, given the subdued consumer market demand over the past two years, DDIC manufacturers—both upstream and downstream—are anticipated to remain relatively cautious in their expansion and capacity investment strategies for 2024.

According to data from Sigmaintell Consulting, the global DDIC supply-to-demand ratio for 2024 was approximately 34.0%—calculated by comparing wafer capacity allocated for high-voltage processes at foundries (representing supply) with downstream DDIC demand-driven wafer capacity requirements (representing demand)—indicating an overall relatively relaxed supply situation. Additionally, it is projected that major global foundries will operate at about 80.2% utilization of their high-voltage process capacity in 2024, marking an 8.3-percentage-point increase year-on-year.

On the 28/40nm high-voltage process technology used for OLED DDICs, wafer foundries have been actively expanding production capacity. By 2024, the overall average monthly capacity for high-voltage processes is expected to reach approximately 331,000 12-inch wafers—up about 8.9% year-over-year. Specifically, the average monthly output for the 28/40nm high-voltage process is projected at around 91,000 12-inch wafers, marking a robust 20.7% increase compared to the previous year. Meanwhile, demand for OLED DDICs continues to surge, driven by growing applications in smartphones, laptops, and tablets. As a result, downstream demand is accelerating rapidly, with chip shipments forecasted to hit 1.3 billion units in 2024—representing an impressive year-on-year growth of roughly 25.4%. Looking ahead, the global supply-demand ratio for OLED DDICs in 2024 is anticipated to be around 28.1%, while the capacity utilization rate for the 28/40nm high-voltage process is expected to climb to approximately 88.2%. This level of utilization is notably higher compared to other process nodes, reflecting strong industry momentum and tight supply conditions.

The overall decline in display driver chip prices has narrowed, though price competition for OLED driver chips continues to intensify.

In the mobile phone LCD TDDI (Touch and Display Driver Integration) segment, HD TDDI prices have already dropped to around $0.85 due to cost-effective solutions introduced by several design manufacturers. This trend is expected to continue influencing pricing strategies across the industry through Q3 2024, with room for an additional price reduction of approximately $0.1. However, the overall market average price is anticipated to stabilize around $0.9. Meanwhile, FHD TDDI prices are projected to remain largely unchanged in Q3 2024, staying steady at about $1.4 on average. Overall, the decline in LCD TDDI prices has become less pronounced. As upstream wafer manufacturers show reduced willingness to cut prices, the potential for further cost reductions is diminishing. Consequently, LCD TDDI prices are expected to bottom out by the end of 2024.

In the area of mobile phone OLED driver ICs, growing downstream demand for OLED smartphones has failed to stabilize chip prices—instead, it has intensified competition among design manufacturers, leading to a price war. By Q3 2024, the average price of conventional Dual-RAM OLED DDICs is expected to drop to around $3.5, representing a quarterly decline of approximately 3%–5%. Meanwhile, RAMless OLED DDIC prices are set to fall even more sharply starting from Q3 2024. With numerous new RAMless projects entering the market in 2024, design firms are aggressively vying for project adoption opportunities, driving quotes down to below $2. Although these ultra-low quotes for new projects don’t yet represent mainstream pricing, they’ve already prompted major suppliers to adjust their Q3 pricing strategies. As a result, the average price of RAMless OLED DDICs is projected to decrease from $2.4 in Q2 2024 to $2.2 in Q3 2024—a quarterly drop of about 8%. According to Sigmaintell Consulting, price competition for OLED DDICs is likely to intensify further as smartphone manufacturers launch new models in the second half of the year. Consequently, the average price of Dual-RAM OLED DDICs in 2024 is expected to hover around $3.4, while RAMless OLED DDICs will see averages ranging from $2.1 to $2.0.

In the large- and medium-size driver IC segment, despite the existing upward price trends across various application panels, design manufacturers have limited bargaining power. As a result, DDIC prices are expected to remain stable in the third quarter of 2024, with little likelihood of a price increase throughout the year.

Source: Industry Expert Says Display