Pessimistic outlook for display driver integrated circuit market

The market is rebounding from steep losses during the last two years, but the long-term outlook for the industry remains pessimistic in the face of continued technological developments, warns display market research firm iSuppli, now part of IHS Inc. Overcoming two successive years of decline, DDIC revenue is projected to hit $6.5 billion in 2010, up 14 percent from the 2009 low of $5.7 billion. Shipments will grow at a corresponding rate, expected to reach 9.8 billion units by the time the year finishes up almost 18 percent from 8.2 billion units last year. Altogether, the numbers this year mark a strong upturn for DDIC following a terrible 2009, when industry revenue contracted by nearly 15 percent from the year earlier, according to iSuppli. Nonetheless, this year's recovery likely will represent the high point for some time to come, especially as revenue is anticipated to decline continuously during the next four years. By 2014, DDIC revenue will stand at $4.7 billion nearly a third off the 2010 level, equating to a five-year compound annual growth rate (CAGR) of negative 3.8 percent, iSuppli said.