Panel Components
As we have noted previously, there has been a shortage of driver and timing ICs for display panels. This has limited panel shipments slightly but has built on itself with panel producers accumulating inventory levels that are above normal as a safety net for further potential driver/TCON shortages. While this has proved to be a good solution for much of the year, the current slowdown in demand for notebooks and TVs would be a point where panel producer demand would slow, especially as foundry costs for such products continue to rise in 4Q, however monitor demand is still robust that panel producers have continued to place driver orders, which is expected to push driver prices up a bit again in 4Q. With relatively high driver inventory levels at LCD panel producers going into 2022, we expect demand to slow a bit further and LCD driver prices to stabilize or weaken.
At the smartphone level the situation is a bit different, with LCD smartphone demand waning and small panel producers working out of inventory. Small panel OLED producers face similar demand challenges, however OLED drivers are limited to a smaller production base, which is expected to keep OLED driver demand strong and prices high for the remainder of the year. While OLED smartphone expansion will continue next year, unless there is a resurgence in smartphone demand, we expect flat OLED driver pricing in 1Q ’22 and weaker LCD driver pricing during the same period.
At the smartphone level the situation is a bit different, with LCD smartphone demand waning and small panel producers working out of inventory. Small panel OLED producers face similar demand challenges, however OLED drivers are limited to a smaller production base, which is expected to keep OLED driver demand strong and prices high for the remainder of the year. While OLED smartphone expansion will continue next year, unless there is a resurgence in smartphone demand, we expect flat OLED driver pricing in 1Q ’22 and weaker LCD driver pricing during the same period.
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