Samsung's Galaxy Z Fold8 has been popular, but the company has run into a third supply bottleneck on top of rising storage and RAM prices: display driver integrated circuits (DDIs). These specialized chips act as the interface between a phone's CPU and its display panel, controlling sub-pixels, rendering, color and brightness for each pixel.
According to a recent ZDNet Korea report, Samsung currently relies on a sole supplier for its DDI chips, United Microelectronics Corporation (UMC). Last month, Samsung fell behind on meeting demand for the Fold8 and asked UMC for additional DDI chips. UMC refused, as it was already running at maximum production capacity. Samsung was forced to cut its September production plans for the Z Fold8, which affected its revenue figures.
To reduce its dependence on a single source, Samsung is now actively looking to add Global Foundries (GF) to its DDI supplier list. The company has shown particular interest in GF's 22nm and 28nm production facilities.
The chips may also find their way into entry-level Galaxy A-series phones by the end of 2027, according to the report. The move would give Samsung more supply flexibility as demand for its premium foldables and budget devices continues to grow.
Source: GSMArena · Summarized by HeadlinesBriefing