In 2022, the global semiconductor industry will undergo a structural adjustment from the previous shortage of capacity to overcapacity. Some areas of the price drop can be described as a tragic-panel driver IC also at the same time by the impact of the panel price drop so that some manufacturers now prefer to default to lose money and no longer place orders for production.
According to the chip foundry force accumulation, by the global inflation, Russia-Ukraine war and TV, cell phones and other consumer electronics demand slowdown, panel driver IC and image sensor, niche memory and other chips will have a larger proportion of the correction, is expected to order decline of about 20%, now the pressure is very high.
Powerchip mentioned that the drive panel IC chip inventory pressure is very high, and there are already customers who prefer to pay default to reduce the inventory pressure, this time the semiconductor industry adjustment to be greater than in 2015, and 2018 decline.
In previous news, according to Omdia’s tracking report, the monthly capacity utilization rate of display panel makers is expected to drop to 70% and 69% of design capacity in June and July 2022, respectively, the lowest value in a decade.
At the end of June, research data from Tiburon Technology showed that LCD panels fell below the cash cost not long ago, including BOE, the three major brands have cut capacity to cope with the price decline, which was expected to converge the price decline, but recently came out of the news that Samsung suspended purchases, resulting in panel prices fell this month
