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Omdia: Rising wafer foundry and material costs are pushing up display driver chip prices

2026-07-16 05:18:56

Abstract generation in progress

Mars Finance reported that Omdia’s latest report points out that as foundry outsourcing capacity tightens and upstream semiconductor manufacturing costs continue to rise, the price of display driver chips (DDIC, Display Driver IC) is increasing. The agency expects that market demand in the second half of 2026 will be weaker than in the first half, but continued cost pressure will still support DDIC prices to rise further. The agency also expects that in the second half of 2026, some foundry outsourcing prices may continue to increase. Foundry outsourcing is the largest cost component in DDIC, accounting for 60%–70% of total costs, of which wafer costs are about 40%. This means that any increase in foundry outsourcing prices will directly affect DDIC manufacturers’ cost structure. (Cailian Press)

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