Wonik D2I, the subsidiary of fab equipment powerhouse Wonik, is expected to go through the final quality test for its OLED panel display driver IC (DDI) conducted by Samsung Display in November, TheElec has learned.
Wonik’s business areas included fab, display, and battery equipment and materials and successfully clinching the supply deal wit the South Korean display panel maker will mark its first entry into chip design.
If its DDI passes Samsung Display’s final quality test, it will be used in OLED panels that the display maker supplies to Chinese smartphone makers.
Wonik D2I, formerly D2I which was acquired by Wonik Holdings in 2022, had gone through two design revision after discussions with Samsung Display prior to the final test, which it is expecting it will pass.
Samsung Display, the world’s largest manufacturer of OLED panels for smartphones, is planning to reduce OLED DDI supply from Magnachip, which creates a vacuum that Wonik D2I can fill.
The South Korean display panel maker’s relationship with Magnachip soured when the latter attempted to sell its business to a Chinese fund. Currently the pair effectively no longer have any business deals, sources said.
So far, this vacuum has been being filled up by Samsung System LSI, which supplies 3 trillion won worth of OLED DDI to its affiliate Samsung Display.
Wonik D2I is expected to secure between 300 billion won to 400 billion won in annual revenue if its enters this supply chain, causing Samsung System LSI’s revenue to drop. Samsung’s logic arm has been paying close attention to Wonik D2I and Samsung Display’s potential deal because of this, the sources also said.
Wonik D2I CEO Hong Soong-won also received his PhD from South Korea’s science university KAIST like Samsung Display CEO Choi Joo Sun. This has motivated Wonik D2I to aim to get approval for a supply within the year while Choi is CEO, the sources said.
Wonik Holdings acquired all of D2I’s shares for 10.7 billion won in Augusut 2022.