Monday, January 17, 2022

Smartphone makers to be haunted by DDI supply shortage in 2022

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The majority of OEMs have handled the existing global semiconductor shortfall with relative ease, but the mobile sector may face another supply crisis next year. This year’s issue was caused by a shortage of power management integrated circuits.

For the most part, the issue was addressed. However, according to market observers quoted by DigiTimes, OLED smartphone makers may encounter additional manufacturing challenges in 2022 owing to a shortage of OLED display driver integrated circuits (DDI).

Samsung is by far the largest maker of OLED panels for mobile devices in the world. Also heavily employs AMOLED technology in its smartphones and tablets, and it offers the technology to other OEMs, including Apple. With that in mind, a DDI supply bottleneck might be the most damaging to Samsung.

According to market analysts, the supply chain would be able to produce roughly 650 million DDI devices next year. At the same time, they anticipate OEMs producing a total of 710 million OLED smartphones, implying that the DDI supply could be 60 million units short.

OLED manufacturers are currently attempting to raise their DDI production capacity ahead of schedule (via WinFuture), but it will all depend on how high demand is. Given the current market environment, it’s tough to say. If demand rises, OLED display producers such as Samsung may find themselves in jeopardy.

If demand falls, there may be enough DDIs to go around, even though this would result in fewer global smartphone shipments. All things considered, it appears that the global smartphone market will struggle to increase in 2022.

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Avatar of Nivedita Bangari
Nivedita Bangari
I am a software engineer by profession and technology is my love, learning and playing with new technologies is my passion.

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