The market for large-size display driver ICs (DDI) will remain oversupplied in 2023, showing no signs of improvement, according to industry sources.
End-market demand may be insufficient to digest excess inventories all along the large-size DDI supply chain next year, said the sources. Replenishment demand for TVs, notebooks, monitors and other terminal devices will likely be a disappointment.
The large-size DDI market's oversupply is unlikely to ease in 2023, the sources indicated. Large-size DDI prices are also expected to fall severely next year, as China-based suppliers initiate aggressive price cuts eyeing a bigger market share.
TV shipments are poised to stay flat on year in 2023, the sources said. As for notebooks, flat shipment growth will be the best-case scenario next year.
Digitimes Research has forecast that notebook shipments worldwide will drop 4.2% on year to 183 million units in 2023, while TrendForce predicts a larger 7.7% decline.
Meanwhile, gaming monitor demand will be the only growth driver of the overall monitor shipments in 2023, the sources noted. Many other IT product categories will likely register shipment decreases next year, as the ongoing inventory adjustments proceed slowly.
The overall large-size DDI shipments may fail to return to 2021 levels in 2023 and just approach year-ago levels, according to the sources.
On the supply side, more China-based players are engaged in the large-size DDI segment which is already oversupplied, the sources said. Supply-side growth is unlikely to slow down substantially next year.
China-based fabless firms including Chipone Technology and Will Semiconductor (WillSemi), and foundries such as Nexchip Semiconductor have all stepped up their deployment in the DDI segment aggressively, the sources indicated. Nexchip is a 12-inch foundry JV between Taiwan's Power Semiconductor Manufacturing (PSMC) and the Hefei city government of China's Anhui province.
Article translated by Jessie Shen
