ChainCatcher reports that Samsung's first passport-style foldable phone, the Galaxy Z Fold8, is facing supply constraints on its display driver IC (DDI). Demand for the Z Fold8 has exceeded expectations, and Samsung has increased orders for components. The DDI, designed by Samsung System LSI and manufactured by Taiwan's UMC on a 22nm process, is the main bottleneck. UMC's 22nm line is already at full capacity, making earlier scheduling difficult. Industry sources say Samsung requested super rush service, but UMC refused. Samsung plans to repurpose DDI volumes that were reserved for next year's development, prioritizing them for this year's production. A typical production run takes about four months from wafer start to finished chip; the chips are then bonded to Samsung Display OLED panels and assembled into handsets. Samsung has also increased orders for hinges and ultra-thin glass (UTG). Meanwhile, demand for the Galaxy Z Flip8 is in line with expectations but on the low side. Apple is also planning to release a passport-style foldable product in the second half of this year.
Samsung's first passport-style foldable phone this year, the Galaxy Z Fold8, is facing tight supply of its display driver IC (DDI), ChainCatcher reports.
Demand beats expectations, DDI becomes bottleneck
Z Fold8 demand has exceeded the company's initial forecast, prompting Samsung to raise component orders. The pinch point is the DDI: designed by Samsung's System LSI division and manufactured by Taiwan's UMC on a 22nm process. That process line is already running at capacity, leaving no room to move production earlier.
Rush order rejected, next year's allocation pulled forward
Industry sources said UMC's 22nm line is also producing other chips. Samsung asked for super rush service, but was turned down.
Samsung now plans to shift DDI volumes originally reserved for next year's development into this year's mass production. A typical production run takes about four months from wafer start to finished chip, after which the driver ICs are bonded with Samsung Display OLED panels and assembled into final devices.
Hinges and UTG orders increase too
Samsung is also placing larger orders for hinges and ultra-thin glass (UTG).
The Galaxy Z Flip8, by contrast, is tracking in line with expectations on the soft side. Apple also plans to launch a passport-style foldable product in the second half of this year.
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