LCD driver IC prices are expected to remain stable

Industry sources said LCD driver IC prices, especially for small and medium-sized panels, are likely to stabilize as downstream equipment assemblers and suppliers are reluctant to accept more price increases.

Electronic Times quoted the above-mentioned person as saying that the net profit of LCD driver chip suppliers has risen to nearly 50%, and it is becoming increasingly difficult to further pass on costs to downstream customers. Although its business is expected to continue to grow in the third quarter, its profit growth almost entirely comes from the increase in quotations due to limited support from foundry capacity.

Sources said that as foundry quotations rise, many driver chip suppliers are still seeking to pass on rising production costs to downstream customers. At the same time, downstream panel manufacturers are already complaining about the rising cost of driver ICs and are cautious about the price reduction trend in the terminal equipment market, which will put pressure on panel pricing.

Against this backdrop, the above-mentioned individuals expect that profit growth of some driver IC suppliers will slow down in the fourth quarter.