Samsung's Galaxy Z Fold8 has been popular, but the company has run into a third supply bottleneck beyond 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 on the screen.
According to a recent ZDNet Korea report, Samsung has relied on a sole supplier for its DDI chips, United Microelectronics Corporation (UMC). Last month, Samsung fell behind on meeting demand for the Fold8 and requested additional DDI chips, but UMC declined because it was already operating at maximum production capacity. As a result, Samsung cut its September production plans for the Z Fold8, which affected its revenue figures.
The company is now actively seeking to widen its DDI supplier list to include Global Foundries (GF). Samsung is particularly interested in GF's 22nm and 28nm production facilities. The report speculates that these chips could be used in entry-level Galaxy A-series phones by the end of 2027.
The move signals Samsung's effort to reduce its dependence on a single chip source and avoid further production disruptions as demand for its foldable and mid-range devices continues to grow.
Source: GSMArena · Summarized by HeadlinesBriefing