The South Korea press is reporting that LX Semicon Co., a fabless semiconductor company, intends to partner with Samsung Foundry to manufacture display driver integrated circuit (DDIC) chips. Samsung’s contract chipmaking division, is expected to produce more next-generation chips for LX to deepen their collaboration. DDICs, designed by LX Semicon control the switching and display method for LCD and OLED panels. Their demand is on the rise due to the increasing needs for higher panel display resolution and faster data transmission speed.
Up until now, LX Semicon has commissioned its chip manufacturing to foundries such as Taiwan Semiconductor Manufacturing Co. (TSMC) and SK Hynix Inc.’s foundry unit SK Hynix System IC. The company, which supplies to LG Display, BOE, and TCL CSOT, has not previously done business with Samsung Foundry, partly because it was a part of the LG Group. After LG Group split its non-core units in 2021, LX Semicon has been striving to broaden its business partnerships and portfolio, which now include display semiconductors and automotive chips.
Earlier this year, LX Semicon and Samsung Display agreed to jointly develop next-generation OLED panel DDICs for smartphones. This growing collaboration with Samsung Group affiliates is expected to bolster the local chip manufacturing ecosystem and the supply chain, while reducing LX’s reliance on LG Display and adding another significant fabless chip design firm to Samsung Electronics’ client roster.
Samsung Electronics, the world’s largest memory chipmaker, trails behind TSMC in the contract chipmaking business, but is rapidly advancing its chip process technology to try and take the lead.
