OLED Panel Driver Chips: Demand and 28nm Upgrades

According to a report from Electronic Times, there has been a significant rise in demand for OLED panel driver chips (DDI) in recent years. These chips have become crucial products for various manufacturers, even amidst a weak market. Unlike many other chip types, their sales have not seen a notable decrease. Industry insiders reveal that OLED driver chip manufacturers are now upgrading from the 40nm process to the more advanced 28nm process, responding to customer requirements.

Apple has specifically requested display driver chip manufacturers to adopt the 28nm process for producing OLED DDI chips. This demand can be easily met due to the ongoing expansion of 28nm production capacity in major wafer foundries. Starting in 2023, the proportion of 28nm OLED driver chips is expected to increase, surpassing the output of the 40nm process by 2024.

Although most panel driver chip manufacturers still primarily employ the cost-saving 40nm process, a few industry leaders, including Samsung, LX Semicon, and Silicon Works, have already adopted the 28nm process. The reason behind this shift is the significant shortage of mature process capacity over the past two years, coupled with the rapidly growing demand for OLED panel drivers. Samsung LSI and UMC are the main producers of these 28nm chips in foundries.

Research firm Omdia suggests that nearly all wafer foundries are focusing on expanding their capacity at the 28nm node. UMC also plans to reduce the capacity of panel driver chips manufactured using the 40-90nm process. On the demand side, major smartphone brands in the panel supply chain are eager to utilize higher-specification chips. With the combined efforts of supply and demand, Omdia predicts that the current ratio of 28nm to 40nm OLED DDI chips, which stands at approximately 4:6, will gradually shift to 6:4 within the next two years. Additionally, the demand for these chips is expected to maintain a double-digit growth rate annually, driven not only by the smartphone sector but also by the increasing popularity of wearable devices.