Revenue from display driver IC (DDI) used in OLED panels is expected to reach US$6.123 billion this year, according to analyst firm Omdia.
But this will continue to drop starting next year to drop to US$4.46 billion in 2028.
The spread of Covid-19, which caused a shortage of the chips, more than doubled the revenue from DDI in 2021 compared to the previous year.
Revenue in 2021 was US$5.09 billion, 130% up from 2020. Average unit prices of the chips increased from US$2.8 to US$4.7 over the same time period.
However, according to Omdia, the shipment of the chips is expected to continue to increase from 1.29 billion units this year to 1.761 billion units by 2028.
The penetration rate of OLED panels in the smartphone market reached 40% last year and is used more and more in TVs and IT products as well, the analyst firm noted.
Average unit prices of the chips are also expected to return to the US$2 range, Omdia said.
Meanwhile, the revenue of DDI for LCD is expected to continue to decline over the same five-year period __ from US$8.238 billion this year to US$5.359 billion.