Institutions: The rise in wafer foundry and material costs drives up the price of display driver chips.

On July 16, the latest report from Omdia pointed out that as wafer foundry capacity tightens and upstream semiconductor manufacturing costs continue to rise, the prices of display driver chips are increasing. The organization predicts that market demand will be weaker in the second half of 2026, but the continued cost pressures will still support further price increases for DDIC. The organization also forecasts that wafer foundry prices may continue to rise in the second half of 2026. Wafer foundry is the highest proportion of the cost of display driver chips, accounting for 60%-70% of the total cost, with silicon wafer costs accounting for about 40%. This means that any increase in wafer foundry prices will directly affect the cost structure of DDIC manufacturers.