NexChip, Samsung Lead Display Driver IC Foundry Biz
NexChip and Samsung have emerged as the leaders in the display driver IC (DDIC) foundry business in terms of market share.
By Mark LaPedus
NexChip and Samsung Foundry have emerged as the leaders in the display driver IC (DDIC) foundry business in terms of market share for the third quarter of 2024, according to Omdia, a market research firm.
NexChip secured the largest market share in the foundry segment for the large-area display and LCD driver IC segments, while Samsung Foundry leads the AMOLED DDIC foundry market, according to Omdia.
DDICs are semiconductors, or chips, that control the switching functions inside a flat-panel display as well as other types of displays. Cars, computers, monitors, smartphones, TVs and other products incorporate displays, or screens, in one form or another.
An LCD TV. DDICs are semiconductors that control the switching functions inside an LCD. Source: Wikipedia
A significant percentage of the world’s DDICs are designed by fabless semiconductor companies. These companies have their DDICs manufactured by foundry vendors, such as GlobalFoundries, NexChip, Samsung, SMIC, TSMC, UMC and others.
The exception to the rule is Samsung, which designs DDICs for use in its own displays. Samsung’s foundry unit manufacturers its own DDICs, although the company also outsources some DDIC production to other foundries. In all cases, DDICs are manufactured using more mature processes, namely 90nm to 28nm high-voltage technologies. DDICs don’t require advanced processes.
Meanwhile, the displays themselves come in different sizes and technologies. Liquid-crystal displays (LCDs) are flat-panel display products, which are found in computers, smartphones and TVs. Active-matrix organic light-emitting diodes (AMOLEDs) are brighter display technologies used in smartphones and other products.
Nonetheless, the DDIC market is a big business. In 2022, demand for DDICs reached 7.95 billion units, a decrease of 10% over 2021, according to Omdia. The demand for DDICs was flat at 7.98 billion units in 2023, according to the firm.
From a market share perspective, the DDIC foundry segment is broken out into three areas: large-area DDIC; LCD driver IC; and AMOLED driver IC.
NexChip was the leader in the large-area DDIC foundry business with a 41.8% market share in the third quarter of 2024, according to Omdia. Located in China, NexChip is a joint venture between China’s Hefei Construction Investment Holding and Taiwan’s Powerchip (PSMC). Large-sized displays involve LCDs, OLEDs and other technologies. Applications for large-size displays include computers, monitors and TVs.
In the large-area DDIC foundry segment, Vanguard was in second place with a 16.5% share, followed by UMC (11.7%) and PSMC (9.0%), according to the Omdia. Vanguard, UMC and PSMC are based in Taiwan. DB HiTek (Korea), Samsung (Korea), SK Hynix (Korea), SMIC (China) and others also compete in this market.
Meanwhile, in the small- and medium-sized display market, NexChip held the largest share in the LCD driver IC foundry segment in 3Q24, according to the firm. These types of displays are used in cars, smartphones, tablets, wearables and other products. In this segment, NexChip was the leader with a 36.8% share, followed by SMIC (22.6%) and PSMC (21%). TSMC, UMC and others compete in this market.
Samsung Foundry, meanwhile, was the leader in the AMOLED driver IC foundry sector with a 30.8% share, followed by UMC (25.6%), SMIC (17.9%), and TSMC (17.1%). U.S.-based GlobalFoundries as well as others compete in this market.
Samsung Foundry manufactures AMOLED driver ICs for its sister operation, Samsung LSI. TSMC's share increased to 17.1%, thanks to LX Semicon’s production of screens for Apple’s iPhone 16 series, according to the research firm.
UMC’s share is projected to grow due to ongoing order adjustments from Samsung LSI. Both Samsung Foundry and UMC are supplying DDICs to Apple’s iPhone and other smartphone brands, according to the firm.
“The rapid growth and competition among Chinese, Taiwanese, and South Korean foundries indicate an ever-evolving display driver IC market. Omdia anticipates that key players will continue to play pivotal roles as the industry expands, with new innovations and partnerships redefining the industry,” said Queenie Jiang, senior analyst for Omdia’s display driver IC research.