DB HiTek will begin supplying its self-developed OLED display driver IC (DDI) to Samsung Display, TheElec has leanred.
The 130nm DDI for OLED mobile displays was developed by the South Korean foundry.
DB HiTek has been supplying the display chips it has developed on its own since 2008.
It is aiming to create its own brand for 8-inch foundry as it is more profitable than pure foundry.
Using its own brand, it can oversee chip design up to production in turn key, making the unit price of this service higher than just doing foundry.
OLED DDI are also more pricier than liquid crystal display DDI.
The deal is expected to increase DB HiTek’s profits as Samsung Display is the world’s largest shipper of mobile OLED panels.
According to DB HiTek, the price per 130nm wafer has increased from between US$315 to US$1,033 last year to between US$376 to US$5,553 in the first half of the year.
The price of the most expensive wafers has increased by 437% over the time period, the South Korean foundry said.
This is thanks to its own brand of OLED DDI, it added.
In the second quarter of the year, DB HiTek recorded 272.7 billion won in sales and 81.4 billion won in operating income, its highest ever.
DB HiTek’s customers include LX Semicon, MediaTek and Texas Instruments.