In 2020, as the epidemic has stimulated people’s demand for work, study, entertainment and other applications at home, the display industry has achieved rapid development, and the upstream chip of the supply chain is also booming. Affected by the global chip shortage, display driver chips are facing price increases. According to data, the total demand for display driver chips is expected to grow to 8.4 billion in 2021.
In the display driver chip market, Taiwanese design companies occupy a dominant position in the LCD field, accounting for nearly 80% of the market in 2020. Heria and ILITEK ranked first and second respectively.
Due to the sudden attack of the epidemic in 2019, all factories were halted urgently, resulting in a shortage of ILITEK’s chip inventory.
In addition, due to the global shortage of COVID-19 vaccines, only about 11% of Taiwan’s population has been vaccinated, which has caused difficulties for factories to resume work, and has exacerbated the problem of imbalance between supply and demand in the market. Chip prices will continue to rise in the future.