As the OLED technology becomes more mature and the cost is gradually reduced, the scale of OLED driver chips in the global DDIC market will continue to increase. In the long run, the substitution of AMOLED panel for ltps-lcd in the global smartphone market and the improvement of OLED panel penetration in the TV market all provide development power for OLED DDIC.
At present, smart phones are the largest terminal application market of OLED DDIC in the world. According to cinno research, the smart phone market accounted for about 85% of the global OLED DDIC terminal applications in 2021.
AMOLED replacing ltps-lcd is the long-term development trend of smart phones in the world, which continues to promote the better development of OLED DDIC. According to cinno research data, AMOLED panel penetration in the global smartphone market increased by about 7.5 percentage points year-on-year in 2021. In the future, driven by Apple’s demand for new computers, the penetration rate of AMOLED smartphone panel is expected to continue to increase.
Therefore, cinno research makes the following three judgments on the future development trend of the global OLED DDIC Market:
Trend 1: the panel capacity is continuously transferred to China, and there is considerable domestic space for OLED DDIC
The penetration of OLED panels in the global OLED market is also increasing. Meanwhile, global OLED capacity is gradually shifting to Chinese mainland. According to CINNO Research data, Chinese mainland OLED capacity in 2022 accounted for about 46% of global capacity. Although Chinese local manufacturers still have room for improvement in OLED DDIC technology, there is considerable room for OLED DDIC localization.
Trend 2: the participation of Chinese manufacturers in the upstream wafer supply chain of OLED DDIC has gradually increased
With the completion of the high-pressure process development of SMIC Semiconductor Manufacturing International Corporation(688981) , hlmc and Shanghai Huali, the capacity supply relationship of OLED DDIC wafers may be alleviated. Cinno research predicts that in 2022, the proportion of Chinese manufacturers in the supply of OLED DDIC wafers for smart phones is expected to increase by about 7 percentage points year-on-year, and their participation in the global OLED DDIC supply chain will be further improved.
Trend 3: the proportion of 28nm in the demand for OLED DDIC wafers is expected to continue to increase
DDIC in the world is gradually moving towards higher wafer manufacturing process. Among them, Samsung actively promoted the upgrade of smartphone OLED DDIC wafer process from 40nm to 28nm. In the future, the proportion of 28nm in the demand for OLED DDIC wafers of smart phones is expected to continue to increase.
At the same time, with the improvement of OLED technology and the decrease of cost in the future, the penetration rate of OLED in other application fields will continue to rise in the long run, such as TV, laptop and tablet, which will also provide long-term development power for OLED DDIC.
Cinno research predicts that the proportion of OLED driver chips in the total global DDIC shipments in 2023 is expected to increase to 16%.
