Outlook looks bleak for display driver ICs

Although the global display driver IC (DDIC) market is projected to reach $6.5 million in 2010, up 14 percent from the 2009 low of $5.7 billion, the long-term outlook looks bleak in the face of continued technological advances, reported iSuppli, now part of IHS Inc.,El Segundo,Calif.

After two successive years of decline, DDIC shipments will reach 9.8 billion units by the end of 2010, up almost 18 percent from 8.2 billion units last year, according to iSuppli

Despite this year’s comeback, the market is expected to decline over the next several years. iSuppli predicts that DDIC revenue will fall to $4.7 billion by 2014, down nearly one-third from the 2010 level.

Although there is growth in the LCD panel market, DDIC unit shipments will be offset by the evolution of more cost-effective and power-efficient technologies in panels, said iSuppli. These changes include the integration of more complex semiconductor functionality onto the LCD panel substrate.