In the display chip family, TCON (TIming Controller, timing control chip) as the bridge between the system SoC and display driver, is one of the core chips required for the normal operation of the display, this article takes you together to understand the development status of TCON in China’s mainland.
TCON is a translator
The main members of the display chip family include the Driver IC, the Power IC, and the Timing Control IC. Among them, TCON assumes the role of “translator” and its main function is to convert the image signal input from the system into a signal that Driver IC can recognize, and to establish the control signals for Source Driver and Gate Driver, which are responsible for pixel driving. It plays a pivotal role in the orderly operation of the display and improvement of the picture quality.
The TCON is the key link to ensure the normal operation of the display, which directly affects the shipment of the display. 2021 global chip shortage, there was a shortage of TCON, resulting in an oversupply of screens.
“Working diagram of “display chip family
Source: ESWIN MarkeTIng Insight
There are three main application solutions for display chips: TCON and Driver discrete, TED and TDDI.
For notebook computers, monitors, TVs and other products that require large displays, TCON and Driver discrete is the main choice, considering factors such as Driver IC driving capability and cost. Some TV screens are designed with TCON less, i.e., the functions of TCON are integrated into the SoC, but high-end TVs still use the discrete TCON solution in order to ensure picture quality.
medium-sized display products such as tablet PCs, which mainly integrate TCON and Diver, i.e. TED.
Small-sized display products, such as cell phones, mainly use TCON and Driver, Touch and other more functional integration of TDDI form.
*TED：TCON Embeded Driver IC。
*TDDI：Touch and Display Driver IC Integrated。
TCON market is like a roller coaster
Affected by the epidemic house economy, the explosive growth of terminal demand in 2021, driving an increase in TCON demand, with an annual growth rate of up to 11% and market demand of nearly 720 million units.
The sudden increase in 2021 also overdrew the terminal market demand in 2022 to a certain extent, coupled with the increasing maturity of the technology, the proportion of TVs using TCON less solutions increased, TCON demand in 2022 there was a significant decline.
Looking ahead, with the economic recovery, TCON demand will see a return to growth, the annual market demand to maintain more than 600 million units, the market size can exceed $ 1.1 billion.
TCON market demand (million pieces)
Data source: ESWIN MarkeTIng Insight
TCON development has a long way to go
Globally, TCON suppliers mainly from Taiwan, China (accounting for more than 70%), South Korea in the second place, although the Chinese mainland followed in third place, but accounted for less than 10%.
Taiwan, China since 2000, the implementation of the “two trillion double star” industrial development plan, its display industry, the rapid development of display chip development, TCON products have formed a certain technical barrier, especially in the process of higher, more difficult high-end TCON products.
TCON Supply Pattern
Data source: ESWIN MarkeTIng Insight
On the mainland of China, driven by the huge display terminal product market, various segments of the display industry chain have started to develop rapidly. From chip design companies to fabs and packaging and testing plants, the various links of the mainland TCON industry chain are making up the shortcomings and gradually improving.
Chip design companies: began to increase the research and development of TCON products to help domestic display manufacturers to solve the TCON chip problem.
Foundry: TCON process between 22 to 55nm, raw materials to 12-inch silicon wafers. In recent years, with the expansion of mainland fabs, 12-inch capacity will be gradually released. Mainland 12-inch wafer foundry capacity below 90nm has been increased from 293,000 wafers / month to 402,000 wafers / month in 2021, which also provides the basis for TCON manufacturing in the mainland.
Packaging and testing plants: In the environment of policy support and rapid industrial development, domestic manufacturers have the ability and capacity for TCON packaging and testing.
In this regard, Yiswell Computing Marketing Manager said, “After experiencing chip shortages, mainland display manufacturers are paying more and more attention to chip supply chain security, and mainland chip design companies, will also seize the opportunity to use the east wind to gradually solve the problem of TCON shortage in China.”
