OLED panels will be used in 39.8% of smartphones this year and 45% in 2022, according to market research firm TrendForce.
This is thanks to wider adoption of the panels by major smartphone brands such as Apple and Samsung, the firm said.
But OLED display driver IC supply is currently unable to meet demand. The chips are relatively larger than other chips so fewer of them can be made per wafer. They are made using 40- to 28-nanometer processes.
Only foundries TSMC, Samsung Electronics, UMC and GlobalFoundries can manufacture OLED display driver IC.
TSMC, Samsung and UMC are the only ones who have secured sufficient wafers to manufacture them, TrendForce said.
Other foundries are developing the necessary process technology but is yet to finalize when they will manufacture them.
TrendForce also noted that different panel makers require different specification for their display driver ICs. The firm said companies without their own foundry subsidiaries or don’t long-standing partnerships in the area needs to secure sufficient production capacity.