Omdia says wafer foundry capacity tightness and rising upstream semiconductor manufacturing costs are driving up display driver IC (DDIC) prices. The firm expects market demand in H2 2026 to be weaker than H1, but sustained cost pressure will continue to support further DDIC price increases; some foundry prices may still rise in H2 2026. Foundry services account for 60–70% of DDIC production cost, with wafer cost about 40%, implying foundry price moves will directly affect DDIC makers’ cost stru

Omdia says wafer foundry capacity tightness and rising upstream semiconductor manufacturing costs are driving up display driver IC (DDIC) prices. The firm expects market demand in H2 2026 to be weaker than H1, but sustained cost pressure will continue to support further DDIC price increases; some foundry prices may still rise in H2 2026. Foundry services account for 60–70% of DDIC production cost, with wafer cost about 40%, implying foundry price moves will directly affect DDIC makers’ cost structures and pricing/margin dynamics.