Foresee LED driver IC supply from upstream wafer foundry

         Recently, on the "Expert say annual meeting Mini/Micro LED display advanced application conference PRIX Aurora Award ceremony" CHIPONE LED Business Division General manager Geng Juncheng shared LED display driver IC technology development trend, on the basis of this sharing, the author here mainly discuss the LED display products prospect and marketing ideas in the niche application market according to recent LED display industry development characteristics.

How about the production capacity of LED display driver IC?
It is reported that the entire LED display drive IC consumes an average of 37,000 wafers each month, accounting for 0.62% of global total 8-inch OEM wafer capacity. Compared with other industries, the demand is not big. LED display driver IC mainly in 110nm-180nm processing, mainly with 8 inch wafer. And the global drive IC 8-inch / 12-inch capacity situation: 8-inch wafer capacity declined slightly, 12-inch wafer show continuous growth.  
 

         According to the "shortage" of LED display driver IC in the first half year of 2021, we analyze the possible reasons for the shortage of IC and the subsequent market trend of the driver IC:  

1. In the long run, the wafer capacity of LED display industry is insufficient.  
  1）The whole semiconductor industry is barely expanding its 8-inch wafer capacity.  
  2）LED display driver IC in the total amount of OEM wafer accounted for a very low proportion, facing strong industry competition.  
  3）OEM Wafer prices is rising continuously, affecting manufacturers willingness for further investment.
  
2. The abnormal price increasing of driver IC in LED industry 2021 was not caused by the demand, the main factors affecting the abnormal rise in price including IC manufacturers cut supply and led to the structural shortages.  

IC manufacturers took the initiative to lift prices in short time, caused panic psychology, buying when the prices are going up instead of going down.
  
3. The supply and the cost of driver IC will show the law of periodic variation, and there is still the risk of out of stock.
  
Driving IC capacity distribution change from pyramid to olive type, the major development trend is:  
1. LED display pixel pitch is getting smaller and smaller, the number of driver IC required per unit area is getting larger and larger, the cost of driver IC in the price composition of the display unit increases.
  
2. The narrowing of LED display pixel pitch has created new application areas. In view of that, YEALUX proposed the concept of standard LED display products, and correspondingly developed outdoor LED advertising poster screen, indoor LED advertising digital poster screen, LED digital signage display screens for commercial areas and related line of products. YEALUX will continue to deep ploughing in field of outdoor digital advertising and retail digitalization.
 
3. Serious homogeneity of Low-end LED display products have serious homogeneity problem which requires targeted development of driver IC in LED display industry.
 

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