According to the semiconductor supply chain, display driver IC makers have significantly scaled back foundry production, but inventories remain high.

Sources pointed out that display driver IC makers have cut wafer production in the fourth quarter of 2022 and 2023 as display panel makers began to cut production amid slowing market demand, but inventories remained at fairly high levels. Therefore, they plan to reduce the inventory through a price reduction strategy.

"Demand for OLED display driver ICs has been disappointing due to poor Android smartphone sales, and suppliers have seen customers delay order processing rather than cancel it," the source said.