Automotive Panel Driver IC Growth in Focus
TDDI, IC usage ↓·Cost optimization

As automotive panel usage increases, the adoption and utilization of TDDI architecture is expected to increase significantly.

TrendForce reported in a report last month that the application of TDDI (Touch and Display Driver Integration) to new designs is gradually increasing, and its market share is continuously increasing.

TrendForce forecasts that automotive panel shipments will exceed 200 million units in 2023, reaching approximately 205 million units, up 5.1% year-on-year, and forecasts TDDI shipments in 2023 to reach 38 million units, up 54% from 24 million units in 2022.

The report highlights the growth of automotive panel driver ICs as the use of automotive panels increases, and the growth of TDDIs that can reduce IC usage and optimize overall costs by integrating touch and drive functions.

This simplifies supply chain management for automakers and Tier 1 suppliers, and panels equipped with TDDI feature an in-cell design that delivers superior optical performance compared to conventional add-on touch modules.

Most new car models currently under development will adopt the TDDI architecture, further increasing its usability. It is expected.

TrendForce identifies Himax as a notable IC design house in the automotive TDDI market, and evaluates that the company has gained a high level of trust from Tier 1 suppliers and automakers based on its early entry and field experience.

Synaptics and FocalTech are also recognized as key players as they entered the automotive TDDI market early and secured a place in the TDDI supply chain of Japanese and Chinese automakers, respectively.

Although it was a late entrant, it has started to launch new products in partnership with panel manufacturers including LX-Semicon, Raydium and Novatek.

If the verification process goes smoothly, these companies are expected to achieve significant growth in the future.

TrendForce predicted that the growing size of automotive panels will help fuel the growth of automotive TDDI.

Additionally, IC design houses are looking to cut costs, and panel manufacturers are expected to shift to large-scale touch and display driver integration (LTDI) as panel sizes exceed 30 inches.

TrendForce also expressed concerns about entry barriers as various IC design houses are entering the product development and market entry, but high levels of reliability and safety are required.

Traditional automakers, especially in Europe, the United States and Japan, have high barriers to entry into their supply chains.

TrendForce said that it must comply with automotive specifications such as AEC-Q100 and ISO26262, and the verification time often reaches two to three years, which means that significant resources will likely have to be invested when entering the supply chain.