According to TrendForce, WitsView's latest observations show that the driver IC demand for displays has been falling due to the reduction in panel production. The annual growth rate of total usage this year is estimated to be minus 3.2%, which is the first negative growth in recent years.
According to professional estimates, there is limited room for growth in 2020, and the annual growth rate of total usage is estimated to be only 1.3%.
Li Zhihao, a vice researcher at TrendForce, said that after the 10.5-generation line in mainland China continued to increase in volume, the pressure on oversupply of the panel continued to rise, reaching a peak this year. The Sino-US trade dispute led to industrial shocks and weak demand for terminal equipment, which led to an increase in panel stocks.
When the panel price falls below the cash cost, the panel producers will choose to reduce the losses by reducing production, and the demand for driving ICs will naturally be affected. At present, it is estimated that the total consumption of driving ICs in 2019 is only 7.76 billion.
Although the addition of new capacity in 2020 may drive the increase in panel demand, large-size panels continue to move toward high resolution, but as the demand for narrow-frame products increases, Gate on Array technology will be more widely used in new models. On the top, the amount of Gate IC is clearly converged. After a long period of time, it also offset the growth of the driver IC. The increased demand for automotive panels and wearable devices will be one of the few drivers that are expected to drive demand for driver ICs.