Omdia: Global DDIC market set to decline 1% YoY in 2025 before stabilizing in 2026

LONDON, February 19, 2026: The global display driver IC (DDIC) market is expected to decline by 1% year-over-year (YoY) in 2025, before stabilizing in 2026, according to Omdia’s Display Driver IC Market Tracker – 4Q25 Database with 3Q25 Results. The outlook reflects structural shifts in TV display panel demand, and memory shortages that are weighing on IT and smartphone display demand.

In 2025, LCD TV display panel shipments increased by 1% YoY, supported by strong demand for smaller sizes (32- and 43-inch models). However, 4K+ panels showed limited growth, constraining DDIC demand in the TV segment. As a result, LCD TV DDIC demand fell 8% year-over-year (YoY), driven by increased adoption of dual-rate driving (DRD) and triple-rate driving (TRD) technologies, alongside weaker-than-expected 4K+ panel shipments.

Across other applications, DDIC demand for monitor, notebook, and automotive displays increased, while tablet and AMOLED smartphone DDICs underperformed. AMOLED smartphone DDIC shipments grew just 1% YoY, and LCD smartphone DDIC shipments also rose 1% YoY.

In 2026, LCD TV DDIC demand is expected to rebound by 4% YoY, supported by growth in 4K+ panel shipments. However, total global DDIC demand is projected to remain flat, as declines in IT applications offset the TV recovery. Memory shortages and related price increases are forecast to cap AMOLED growth at 0% YoY and slow the transition from LTPS LCD to AMOLED smartphones, resulting in a 2% YoY decline in total smartphone DDIC shipments. From 2027 onward, AMOLED smartphone DDIC growth is expected to average around 3% annually, while LCD smartphones declines are projected to moderate.

Figure 1: Display driver IC yearly demand forecast by application

Source: Omdia

On the supply side, capacity trends remain mixed across foundries. Taiwanese and South Korean foundries are reducing capacity allocation to large-area DDICs, which include TV, monitor, notebook PC, and 9-inch and above applications due to surging demand for power management ICs (PMICs). Meanwhile, Chinese foundries continue expanding large-area DDIC capacity. As a result, the total capacity for large-area DDIC grew 10% YoY in 2025.

“In 2026, total volume of supply (capacity) and demand for large-area DDICs are expected to remain broadly in line with 2025 levels, meaning the market is likely to remain in oversupply,” said Queenie Jiang, Senior Analyst at Omdia. “However, supply distribution will be uneven. Foundries with higher PMIC order volumes may face tighter DDIC capacity, potentially driving necessary price increases.”