Automotive TDDI shipments are expected to surge by 54% in 2023

The latest TrendForce research report on automotive panels forecasts a significant increase in demand for automotive panels. The automotive market is regaining momentum as the global pandemic continues to recover. It is estimated that automotive panel shipments will surpass 200 million units in 2023 and are expected to reach 205 million units, growing at a CAGR of 5.1%. The report further highlights that with the increasing adoption of automotive panels, the growth of automotive panel drivers IC has become the focus of attention. In particular, the application of touch and display driver integration (TDDI) in new designs has gradually increased, and its market share has continued to grow.

The advantage of TDDI in automotive is the integration of touch and drive functions, reducing the use of IC and optimizing overall costs. This simplifies supply chain management for automotive manufacturers and Tier 1 suppliers. In addition, TDDI-equipped panels feature an in-cell touch (in-cell) design that provides better optical performance compared to traditional add-on touch modules.

TrendForce believes Himax is currently the leading IC design company in the automotive TDDI market. The company entered the field earlier and has a mature experience that has gained a high level of trust from stringent Tier 1 suppliers and automotive OEM customers. Synaptics and Duntech Technology are also considered major players due to their early entry into the automotive TDDI market and their presence in the TDDI supply chains of Japanese and Chinese automakers, respectively.

Other IC design firms have begun, albeit late, to launch new products in collaboration with panel manufacturers such as LX -Semicon, Raydium and Novatek. If the validation process goes well, these companies could see significant growth in the coming years.

TrendForce predicts that the size of automotive panels will gradually increase, which is conducive to the growth of TDDI in the automotive sector. In addition, IC design houses are looking for IC cost savings, so it is expected that these panel manufacturers will move to large touch and display driver integration (LTDI) as panel sizes exceed 30 inches. At this point, most IC manufacturers are still in the early stages of development.

TrendForce emphasized that the demand for automotive trim has grown rapidly in recent years, prompting various IC design companies to develop and sell their products. However, unlike the consumer electronics market, products for the automotive industry must not only be cost-effective, but also provide a high level of reliability and safety. Traditional automotive manufacturers in Europe, America and Japan in particular have relatively high barriers to entry in their supply chains. Processes and products must comply with automotive specifications such as AEC-Q100 and ISO 26262, and validation time is often 2 to 3 years. Panel manufacturers must also provide a supply guarantee of at least five years, a requirement that is very different from how the consumer products market operates. As a result, it is difficult to replace established suppliers.