According to one regional research organization, in 2022, mainland China’s share of the global large-size TFT-LCD panel shipment market will increase to about 54%. One outcome is going to be the increase in TFT-LCD production capacity will of related display driver integrated circuits (DDICs). Chinese manufacturers will see their hand strengthened against traditional market players from Taiwan, South Korea, and Japan.
| Company | Country | Industry | Specialization |
|---|---|---|---|
| Samsung Electronics | South Korea | Electronics, Semiconductors | Display driver ICs, OLED panels, memory, smartphones, appliances |
| Novatek Microelectronics | Taiwan | Semiconductors | Display driver ICs, multimedia SoCs, touch controller ICs |
| Himax Technologies | Taiwan | Semiconductors | Display driver ICs, timing controllers, touch panel controllers |
| LX Semi | South Korea | Semiconductors | Display driver ICs, power management ICs, image signal processors |
| Sitronix Technology | Taiwan | Semiconductors | Display driver ICs, touch controller ICs, MCU |
| Tongruiwei (Torey) | China | Semiconductors | Display driver ICs |
| Chipone Technology | China | Semiconductors | Display driver ICs, touch controller ICs |
| Raydium Semiconductor | Taiwan | Semiconductors | Display driver ICs for LCD and OLED panels |
| Eswin Computing | China | Semiconductors | Display driver ICs, touch controller ICs |
| Fitipower Integrated Tech. | Taiwan | Semiconductors | Display driver ICs, power management ICs, other integrated circuits |
A Brain for a Display
DDIC is one of the main control components of the display panel, driving the display panel through electrical signals and transmission of video data. In some applications, engineers prefer to use driver-only TFT LCDs. This approach requires product engineers to build a TFT controller circuit and program control software code into their microprocessor or microcontroller. As a result, the timing, greyscale generation, and voltage drive functions are controlled directly through the application.
Design constraints and cost factors drive the need for driver-only TFT LCDs. Many mobile devices have tight mechanical constraints, so designers cannot accommodate a full-sized TFT LCD module with embedded drive electronics. Instead, they move the drive electronics onto their application and utilize their microcontroller or microprocessor to code embedded software that mimics the TFT control drive electronic functions. This enables them to create a thin, tight package to fit their needs.
Another reason for using driver-only TFTs is cost. By placing the TFT drive electronics onto their application, product designers can save money by creating a custom board layout that integrates the drive electronics and other components in a more cost-effective manner. This also allows them to leverage existing microcontroller or microprocessor resources to handle the display control functions, reducing the need for additional components and lowering the overall cost of the product.
TFT drive electronics activate the TFT array substrate, creating an electromagnetic field that affects the liquid crystal. The liquid crystal twists in response to the field, allowing light to pass through a glass sandwich. The light is modulated by color filters to produce the desired color. TFTs are faster than traditional designs due to their semiconductor-fabricated transistors, which enable localized activations across individual pixel transistors.
However, for desktops and larger format displays, usually, you have dedicated controllers, sometimes quote powerful ones. The typical elements of a controller are: the control block that plays a crucial role in controlling instruction and clock signals for the TFT glass’s row and column drivers. It also generates the correct signal cycles to drive the TFT properly; the greyscale block that generates target reference voltages across a voltage divider circuit to control the brightness and clarity of each color pixel. The control logic block then uses the voltage levels generated by the greyscale generator block and sends them to individual transistor pixels to control the brightness and clarity of the color output.
There’s also a voltage driver generator that creates the necessary TFT drive voltages for the row/column drivers to drive the TFT LCD. This block ensures color output stability to prevent flickering and inconsistent color, as well as liquid crystal stability to avoid display damage due to localized net voltage build-up.
The choice of DDIC packaging technology, such as Chip on Glass (COG), Chip on Film (COF), or Chip on Plastic (COP), directly impacts the thickness of the display panel and the overall device design. COF and COP technologies, in particular, enable the creation of thinner and more flexible panels compared to traditional COG packaging. By integrating the driver circuit into a flexible film or directly onto a flexible plastic substrate, these technologies contribute to reducing bezel size and the overall thickness of the display panel. This allows product designers to create devices with slimmer profiles, larger screen-to-body ratios, and, in some cases, foldable or curved displays.
The Market for LCD Driver ICs
According to Cinno Research, global desktop display panel shipments will drop by 8% YoY in 2022, and global desktop display LCD driver chip market shipments will decrease by approximately 11% YoY. However, as the domestic epidemic is released, inventory depletion and market demand restoration are expected. The decline in global demand for desktop display panels will narrow to 2% in 2023.
In 2022, the top three DDIC manufacturers in mainland China were Novatek, Himax, and Torey. Cinno says, mainland Chinese manufacturers share of desktop display LCD driver chips increased to 31.5% in 2022, because major manufacturers have focused on high-end displays such as high refresh rate, high contrast, and high-resolution models that improve gaming and office experiences. By 2025, desktop display panels with QHD and above resolutions may constitute more than 20% of the market share.
The share of mainland Chinese manufacturers of desktop display LCD driver chips has increased to 31.5% in 2022. The top three manufacturers in mainland China are Novatek, Himax, and Tongruiwei (also known as Torey). Torey has been particularly successful to go from almost nowhere to a third of the Chinese market in the last couple of years.
The rate of change of market data, post-pandemic rethinking of global supply chains, and the general political atmosphere, suggest that Chinese manufacturers will reduce their reliance on DDICs from foreign vendors in the the very new future. The question is, how will this fact shape supply chains globally? Theoretically, with protectionist moves in the US, Japan, South Korea, and across Europe, you might see duplication of effort as countries bolster local manufacturing for elements that are just better acquired from an offshore supplier. We may be seeing less of a reconfiguration of global supply chains as duplication and redundancy in supply chains.
