On July 16, Omdia released its latest report, revealing that the prices of display driver integrated circuits (DDICs) are on a continuous upward trajectory. This surge is primarily attributed to the strained capacity of wafer foundries and the escalating costs in upstream semiconductor manufacturing processes. Despite projections indicating a weaker market demand in the latter half of 2026 as compared to the first six months, the prevailing cost pressures are anticipated to sustain, if not accelerate, the price hikes for DDICs.

The report further highlights that certain wafer foundry prices are poised to continue their ascent in the second half of 2026. Notably, wafer foundry expenses constitute the largest share of display driver IC costs, accounting for a substantial 60% to 70%. Within this, silicon wafer costs alone make up roughly 40%. Consequently, any fluctuations in wafer foundry pricing will have a direct and significant impact on the cost frameworks of DDIC manufacturers.