© Trendforce Analysis | November 05, 2019
2019 shipment of flat-panel display driver IC show negative growth
Reduced panel shipment is causing the demand for flat-panel display driver IC to undergo a corresponding decline, says the WitsView research division of TrendForce.
The 2019 YoY growth for total adoption is projected to be -3.2%, which marks the first instance of negative growth in recent years. The space for shipment growth in 2020 is likely also limited. Julian Lee, assistant research manager at TrendForce, indicates that the oversupply of panels has reached a climax this year as Gen 10.5 plants begin mass production. In addition, the U.S.-China trade war destabilises the industry and exacerbates the oversupply problem by inducing a weak demand for consumer electronics. As panel prices drop below cash costs, panel makers respond by massively scaling back panel production and thus impacting the demand of driver IC. The latest figures suggest that total shipment of driver IC in 2019 sits at approximately 7.76 billion units. As GOA technology penetration rises, potential for driver IC growth in 2020 becomes limited The injection of new production capacities in 2020, the implication for more panel shipments, and the trend towards higher resolution for large-sized display applications are offset by several factors leading to a stunted driver IC growth. These factors include the ever-increasing popularity of narrow bezels, Gate-on-Array (GOA) integration into large-sized displays, and the corresponding decrease in Gate IC adoption. Possible factors that stimulate driver IC demand consist of growths in shipment of automotive display panels and wearable devices. TrendForce projects the 2020 growth rate of total driver IC shipment to be a mere 1.3%.
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