Display driven IC demand decline

According to the latest observation of WitsView, driven IC demand of flat panel displays has declined due to the decrease of panel shipment. The annual growth rate of total consumption in 2019 is estimated to be negative 3.2%, which is the first time in recent years. It is estimated that the growth space in 2020 will be limited.

Li Zhihao, deputy manager of Jibang consulting research, said that after China's 10.5-generation line was released in succession, the pressure of panel oversupply reached a peak this year. In addition, the industrial shock caused by the Sino US trade dispute and the weak demand for terminal devices also increased panel inventory. However, when the panel price falls below the cash cost, the panel factory will respond by greatly reducing production, and the demand for driving IC will be affected. At present, the total consumption of driving IC in 2019 is estimated to be only 7.76 billion