March 31, 2026 /SemiMedia/ — TrendForce said rising wafer, packaging and material costs are putting pressure on display driver IC (DDIC) suppliers, with some companies starting talks with panel makers about possible price increases.

Wafer fabrication makes up about 60% to 70% of DDIC costs, while packaging and testing account for roughly 20%. Prices for foundry services have moved higher due to increases in energy, labor and materials. At the same time, tight supply of 8-inch capacity, widely used for high-voltage processes, has added further pressure.

On the 12-inch side, some foundries have reduced high-voltage output, pushing more orders to Nexchip, a key supplier for DDIC production. This has kept utilization high and supported price increases for mature nodes.

Back-end processes are also seeing cost increases. DDIC production involves bumping, packaging and testing, and recent constraints in packaging capacity, along with higher material and labor costs, have led to higher service quotes. COF and COG segments are facing stronger cost pressure. In addition, higher gold prices since 2024 have pushed up bumping material costs. Some suppliers are exploring alternatives, but the impact remains limited in the near term.

TrendForce said if cost increases continue, DDIC suppliers are more likely to adjust pricing. The scale of any increase will depend on product mix, applications and customer structure. Changes in DDIC pricing could gradually pass through to panel makers and end products such as TVs, monitors, laptops and smartphones.