According to a TrendForce consulting report, under the condition of supply and demand imbalance and high inventory, it is expected that the price drop of driver IC will expand to 8%-10% in the third quarter, and it is not ruled out that all the way down to the end of the year.
TrendForce further stated that Chinese panel driver IC suppliers are more willing to cooperate with the requirements of panel manufacturers in order to consolidate the supply momentum, and the price reduction can reach 10%-15%.
The report pointed out that as demand is difficult to improve in a short period of time, the price of panel driver ICs cannot be ruled out to continue to fall, and it is very likely that it will return to the starting point of 2019 earlier than expected.
In addition, TrendForce believes that for fabs, panel driver ICs are less profitable than other applications, but they are one of the most efficient products for fabs to fill capacity. After the driver IC will face a sharp price drop in the third quarter and reduce the production plan, it is necessary to observe whether the foundry price will be the same as that in the second quarter, or moderately reduce the price to maintain a high utilization rate.
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