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Taiwan driver IC backend houses gaining from Samsung exit from LCD

Taiwan's driver IC backend firms have seen small-volume rush orders as a result of Samsung Electronics' gradual exit from the LCD panel market, according to industry sources said.

Samsung's purchases of more LCD panels from Innolux and AU Optronics (AUO) and their Chinese peers will benefit in the long term Taiwanese driver IC designers including Novatek Microelectronics and Himax Technologies as well as backend houses such as Chipbond Technology and ChipMos Technologies, the sources said.

Novatek and Himax have entered the supply chain of Korean TV vendors, but initial orders have been small due to specific specs required by the vendors, the sources said.

Taiwan's driver IC design and backend houses are expected to see significant increases in shipments to Korean LCD TV vendors in 2021, but capacity support from 8-inch wafer fabs will be a major factor affecting their actual sales, the sources said.

The OLED driver IC packaging sector is expected to delay its takeoff, but backend demand for small- and large-size DDI, TDDI, OLED DDI and FTDDI chips for 5G handsets and 8K TVs will gain growth momentum in the near future, the sources indicated.