By Kate Yuan

(JW Insights) Aug 17 -- Taiwan-based Display driver IC (DDI) suppliers continue to be under pressure to reduce chip prices, and cost considerations may push them to turn to Chinese mainland pure-play foundries that can offer significantly lower manufacturing prices, DIGITIMES Asia reported on August 16.

Almost all DDI suppliers believe that there is significant pressure from clients to lower the prices of display driver chips in the second half of 2023. The persistently sluggish smartphone market has prompted display panel clients to shift the pressure to the upstream supply chain.

The price reduction pressure is not limited to the smartphone sector. Clients of medium to large panels such as televisions and automotive are also demanding greater discounts from DDI manufacturers.

Chinese mainland vendors have initiated several rounds of price cuts to expand their market share since 2022, said FocalTech. If the price pressure persists, FocalTech might consider turning to Chinese mainland chip foundries, said an industry insider, according to the DIGITIMES Asia report.