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LCD driver IC design houses will hike quotes to reflect continually increased costs for wafer foundry services but have been faced with reluctance from clients, LCD panel makers, because panel prices have kept falling since the end of the second quarter of 2021, according to industry sources.
These LCD driver IC design houses are mainly Novatek Microelectronics, Himax Technologies, Fitpower Integrated Technology, FocalTech Systems, Sitronix Technology, and Raydium Semiconductor, the sources said.
Taiwan Semiconductor Manufacturing has decided to hike quotes for foundry services for the fourth quarter, and United Microelectronics, Powerchip Semiconductor Manufacturing, Vanguard International Semiconductor, and China-based fellow makers Semiconductor Manufacturing International and Hua Hong Semiconductor plan to follow suit, the sources noted.
While LCD driver IC design houses are confident of succeeding in hiking quotes, they will face difficulties arising from clients' resistance, the sources analyzed.