Panel quotations are avalanche. When panel makers such as AUO and Innolux are under pressure, driver IC makers may become another major victim. According to industry sources, panel makers are unwilling to accept price increases for components such as driver ICs in order to ensure profits. However, the quotations of upstream foundries have been rising recently, and the cost of driver IC makers has risen sharply, but they are facing quotations. The cost cannot be passed on, but the pressure of profit erosion caused by rising costs can only be absorbed. Driver IC manufacturers such as Novatek (3034), Tianyu, and Duntai simultaneously raised alarms.
Affected by the short supply of mature wafer foundry process production capacity, driver ICs are simultaneously lacking, but even if the driver ICs are out of stock, the quotations are under pressure to rise. Leading manufacturer Novatek said frankly when participating in foreign investment forums recently that it was up for the fourth quarter. The price view is more cautious. "The quotation is not moving" is also gradually spreading in the industry chain. Wu Feijian, chairman of the leading IC packaging and testing company, Qibang, revealed that after four consecutive seasons of price increases, there is no price increase plan for the fourth quarter.
The clues can also be seen from the financial estimates and recent profitability of major driver IC factories. For example, Novatek estimates that this quarter's revenue is expected to reach 37.8 billion to 38.8 billion yuan, a quarterly increase of more than 10% and a new high, but the single-quarter gross profit margin is estimated to fall between 48% and 51%, which is calculated based on the median of 49.5%. , Which is lower than the historical peak of 50.33% in the second quarter, highlighting the difficulty of completely passing on the cost.
In addition, Duntai's July revenue surpassed nearly 2.02 billion yuan, a record high, with a monthly increase of nearly 6%, but the company’s monthly profit from the statement did not increase but decreased from June to 498 million yuan, a monthly decrease. More than 40%, "revenue increased, profits fell sharply", revealing that although the driver IC factory shipments continue to increase, but the unit price cannot maintain high-end conditions.
As for Tianyu, although its performance in August reached a record high in June, reaching 2.246 billion yuan, foreign investors are worried about easing pressure on future quotations. As of last Friday (3rd), it has sold for five consecutive times, with a total of more than 2,700. Tianyu's share price is also From the high of 348 yuan in early July, it recovered all the way, and closed at 231.5 yuan last Friday, a swing loss of more than 33%.
According to industry sources, chip price increases are a science, after all, the economy cannot always be high-end. "If you increase prices when the economy is good, you must be psychologically prepared for the economy to reverse and be bargained."
As the panel market reversed from a high point to a downward trend, the industry, which was originally "community difficult", is unwritten and tacit. Even if the driver IC is still lacking, it will become difficult to increase the price again.
In particular, driver IC used to be a “weak item”, and the price only fell but did not rise. Previously, panel makers were willing to accept driver IC price increases because they made a lot of money and rushed to make shipments timeliness. Nowadays, the economy reverses, and panel makers will naturally demand supply. Traders "frozen up" and even lowered prices.
