-
- News
- Books
Featured Books
- smt007 Magazine
Latest Issues
Current IssueComing to Terms With AI
In this issue, we examine the profound effect artificial intelligence and machine learning are having on manufacturing and business processes. We follow technology, innovation, and money as automation becomes the new key indicator of growth in our industry.
Box Build
One trend is to add box build and final assembly to your product offering. In this issue, we explore the opportunities and risks of adding system assembly to your service portfolio.
IPC APEX EXPO 2024 Pre-show
This month’s issue devotes its pages to a comprehensive preview of the IPC APEX EXPO 2024 event. Whether your role is technical or business, if you're new-to-the-industry or seasoned veteran, you'll find value throughout this program.
- Articles
- Columns
Search Console
- Links
- Events
||| MENU - smt007 Magazine
Intense Competition in DDIC Supply Market Expected in 2024, with Continued Pressure on Prices
December 25, 2023 | TrendForceEstimated reading time: 2 minutes
TrendForce’s latest investigations forecast an exciting yet challenging year for the DDIC market in 2024. With prices in 2023 mostly stabilizing or showing a slight decline, the upcoming year is poised for a transformative shift. The market is bracing for a significant upward swing in demand—particularly for large-scale applications like TVs, gaming monitors, and commercial notebooks—which is set to drive a notable increase in panel shipments and consequently, a spike in DDIC demand. Despite this promising outlook, however, DDIC prices are expected to continue their downward trend due to ongoing market pressures.
Reflecting on the 2023 DDIC market, TrendForce observed that even as TV panel prices rebounded, panel makers felt short-lived relief and continued pressure to reduce costs from upstream component suppliers. This situation has compelled DDIC suppliers to strategically enhance their product designs for cost-effectiveness and forge stronger partnerships with more economical foundries.
The current scenario sees Chinese foundries emerging as key players and capitalizing on government-backed domestic policies aimed at aggressively expanding production capabilities. Their competitive pricing strategies have subsequently made them a magnet for DDIC suppliers. Since 2H23, these foundries have been operating at full capacity—thanks to peak season demand—and they continue to ambitiously expand their production capacity. In contrast, Taiwanese 8-inch foundries are facing a tougher market, with their need to sustain profitability leading to less competitive pricing and a consequent drop in utilization rates to 50%.
As 1Q24 ushers in the traditional market lull, major panel makers are expected to stick to their capacity control tactics. This conservative approach aims to temper overproduction and prevent potential panel price declines. The period will also likely see a downturn in the procurement of front-end components. However, the real test will come in the second quarter, as a surge in end-user demand is predicted to prompt panel makers to ramp up procurement, potentially challenging the supply-demand equilibrium in the industry.
A pivotal factor to watch is the increased concentration of panel production in Chinese factories, coupled with China’s accelerated drive toward domestic component production. This shift is putting Taiwanese suppliers, who have long dominated the DDIC market, under significant strain. They now face a multifaceted battle, not just in terms of pricing and technology, but also in terms of their future strategic positioning and market share. In response, Taiwanese suppliers are recognizing the critical importance of doubling down on technological innovation and R&D investments. Their goal? To keep pace with demand for ever-evolving high-end display technology, cement a distinctive brand image, and secure an unshakeable position in the market.
Suggested Items
SPEA Expands in Southeast Asia with New Subsidiary in Thailand
05/17/2024 | SPEASPEA, a global leader in automatic test equipment for the manufacturing of semiconductor, microelectronic and electronic devices, today announced the opening of its new subsidiary in Thailand. This expansion marks a significant step forward in SPEA's commitment to serving the growing Southeast Asian microchip and electronics market with leading-edge manufacturing machinery and equipment.
PCB Market Size to Grow by $29.06B from 2024-2028
05/17/2024 | PRNewswireThe global printed circuit board (PCB) market size is estimated to grow by USD 29.06 bn from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 6.6% during the forecast period.
AT&S 2024/25 on Growth Course Again
05/17/2024 | AT&SAT&S operated in a challenging market environment in the financial year 2023/24. After a strong second quarter, demand was relatively weak again in some market segments in the second half of the financial year.
Shipments of OLED Monitors Hit 200,000 Units in 1Q24, Annual Forecast to Reach 1.34 Million
05/17/2024 | TrendForceTrendForce’s latest report reveals a robust start to 2024 for OLED monitors, with shipments reaching approximately 200,000 units in the first quarter—marking a YoY growth of 121%.
Magnachip Celebrates the Grand Opening of Magnachip Technology Company in China
05/16/2024 | MagnachipMagnachip Semiconductor Corporation celebrated the opening ceremony of Magnachip Technology Company, Ltd. (MTC) yesterday at its headquarters located in Hefei, China. MTC is a subsidiary of Magnachip, established on December 20, 2023, to expand the Company’s display driver IC and power IC businesses in China.