According to the report of China Business Industry Research Institute, the global AMOLED panel revenue will reach US $25.1 billion in 2019, which is expected to reach US $31.1 billion this year and US $33.4 billion in 2021.
At the same time, the demand for AMOLED driver chips has ushered in rapid growth. Some organizations predict that the global market scale of AMOLED panel driver chips will reach 6 billion yuan in 2020 and 8 billion yuan in 2021.
Chinese mainland manufacturers have been sniffing “business opportunities” and pouring into the track. However, there is still a big gap between manufacturers and foreign companies, even in China’s Taiwan region.
Rush to the track
Recently, the display chip supplier yunyinggu has completed a round D financing of nearly 300 million yuan. This round of financing will be used to improve product R & D investment, production and market layout, and further consolidate the company’s leading advantages in the field of AMOLED driver chips and silicon-based micro display chips.
Yunyinggu’s main products include AMOLED display driver chips and OLED micro display chips, both of which are in mass production this year. AMOLED driver chips are expected to reach 10 million by the end of 2020, accounting for more than 10% of China’s market share, ranking first among AMOLED driver chip companies in the mainland.
Behind the D round of financing of nearly 300 million yuan, Yun Ying Valley shows that Chinese mainland manufacturers have poured into the OLED display drive chip circuit.
As we all know, OLED screen has the advantages of ultra-thin shape, true color display, fast response, high contrast and full view for traditional LCD screen, so it quickly occupies the market. With the development of display technology from LCD to OLED, the driver chip technology also changes.
In addition to the cloud Valley, Chinese mainland OLED display drivers mainly include the set up of North China, Chung Ying Electronics (subsidiary Xin Ying), Gekko micro and new phase microelectronics from the traditional LCD display driver chip, including the microelectronics, Gidith and other OLED driven IC R & D since its inception.
Founded in 2008, Jichuang North focuses on the design of display chip, mainly providing complete display chip solutions for LED display, LCD panel, OLED and other new displays. After 12 years of development, it has formed a comprehensive technical layout and diversified product direction. In June this year, the project of Jichuang North headquarters and display driver chip design and advanced test base officially started.
Zhongying electronics has been involved in the research and development of panel driver chips since 2009. AMOLED driver chips were sampled in 2015 and mass production began in the third quarter of 2018. The company also set up a subsidiary, Xinying, in 2016. Xinying focuses on OLED display driver chip, and has mastered the core technology of AMOLED display driver chip design.
The main products of Geke micro display driver chip are LCD driver chip. However, the company is also following the development trend of display technology, actively developing touch display driver tddi chip, AMOLED driver chip and other products and relevant technical reserves.
New phase microelectronics, founded in March 2005, is mainly engaged in the R & D and design of new display driver chips. Its main products include TFT, LTPS, OLED driver chip, fingerprint identification chip, etc., and has independently completed the R & D of AMOLED full screen driver chip.
In 2018, Shenghe microelectronics won the TSMC standard and achieved the world’s first mass production of 40 nm OLED driver chip for wearable use. In the field of smart wearable and smart phones, shenghewei’s AMOLED driver chip has completed a comprehensive layout.
In September 2018, giddis and SMIC north jointly announced that the 40nm AMOLED smart phone panel driver chip has officially entered mass production. In addition, in April 2019, the domestic AMOLED screen driver chip designed by giddis and manufactured by SMIC international will be applied in b7-amoled display screen production line of Chengdu base.
In addition, the market reported in August this year that Yu Chengdong, CEO of Huawei’s consumer business, issued a notice on the establishment of a display drive product business department. Huawei also said it did set up the Department. According to the industry chain, as early as the end of 2019, Huawei was engaged in related projects, and Huawei Hisilicon’s first OLED driver chip was already being streamed.
take a heavy burden and embark on a long road
Chinese mainland Chinese mainland manufacturers are actively positioned, but the gap between manufacturers in China and Taiwan is still obvious. Before that, the Agency predicted that the proportion of mainland Chinese manufacturers in the global AMOLED panel drive chip market in 2020 was only 5%. Samsung LSI and magnachip almost monopolize the market, accounting for 75% of the total market.
In addition to the Korean manufacturers, the alliance manufacturers such as Lian Yong and Rui Ding benefited from the rise of China’s AMOLED panel manufacturers and the accumulation of LCD, occupying 20% of the world’s market share.
Isaiah research, another market research firm, predicts that Samsung SDI will take 35-45% of the market share this year, and magnachip will take 30-35%, followed by Lianyong, Ruiding and silicon works.
And in the smartphone market segment, we can see a significant gap. According to omdia, Samsung LSI and magnachip together account for 86% of the smartphone AMOLED driver chip market in 2019.
Samsung LSI and magnachip supply mainly to Samsung display and lgdisplay, which benefit from the performance advantages of the two panel manufacturers and their strong ability of vertical integration of supply chain, thus monopolizing the market.
Next are Taiwan based manufacturers Ruiding and Lianyong, among which Ruiding is the main supplier of Hehui optoelectronics and vicino, with a market share of 5% in 2019. In 2019, Lianyong mainly supplies to BOE and Huawei. In 2019, it shipped about 20 million AMOLED driver chips, accounting for 4% of the market.
Chinese mainland manufacturers have not a space for one person in the list.
Recently, Dr. Zhang JinFang, chairman of Jichuang north, pointed out at the 2020 world display industry conference that China’s localization rate in the field of display special chips, one of the key links in the display industry, is less than 5%, and its dependence on foreign countries is very high.
In addition to the obvious gap in market share, it can also be seen in the advanced process. Samsung LSI began mass production of 28nm AMOLED driver chips as early as 2018, and magnachip introduced 28nm technology last year. However, the wafer fabrication plant in Chinese mainland started to launch mass production of 40nmAMOLED drive chips last year.
This shows that Chinese mainland manufacturers have a long way to go to catch up with the Korean department or even Taiwan based manufacturers. In fact, it is precisely because of the big gap that there is more room for growth.
Previously, Dr. Zhang JinFang said: “at present, in the field of display chip, there have been world leading chip design manufacturers like Lianyong. This means that the display driver design company also has the opportunity to enter the top 10 of the global semiconductor industry, so the driver chip industry is a big track with great opportunities. The Chinese mainland panel industry is bound to develop a world-class display chip design company that transcends the chanting.
The success of Korean manufacturers lies in the integration mode of the whole industrial chain of “design manufacturing packaging panel terminal”. The rise of Taiwan manufacturers lies in the binding relationship with the upstream and downstream of the industrial chain.
Dr. Zhang JinFang also pointed out earlier that display chips, including display driver IC, power management IC and display SOC chip, are the most critical part to determine the display quality. Chinese mainland has not yet formed a relatively complete industrial ecology in the new display industry because of its late start.
Therefore, if the domestic display chip industry chain wants to grow rapidly, it needs to develop as a group, take the rapid development of panel industry as an opportunity, open up the domestic display chip industry chain, and promote the localization development of “design as the leader, manufacturing as the basis, equipment and materials as the support”.
In addition to the industry’s joint efforts to build domestic ecological chain, we also need to pay attention to the accumulation of technology and the introduction of talents.
Editor in charge: Tzh