For LX Semicon, Samsung Foundry might produce display driver chips

As per some recent pieces of information from South Korea, Samsung could gain a contract from LX Semicon regarding the manufacturing of display driver integrated circuits (DDICs). It is reported that such a step would reinforce the domestic chip fabrication network. LX Semicon is basically a South Korean company. It is well-known for designing semiconductors for displays.

When it comes to DDIC, it is originally a unit that controls the main functions of LCD and OLED panels. A DDIC controls switching and displaying. Such semiconductors are designed by LX Semicon whereas the main devices are built by SK Hynix System IC and Taiwan Semiconductor Manufacturing Co. (TSMC). Finally, LX Semicon provides DDICs to other companies including BOE, CSOT, and LG. It is utilized in LCD and OLED panels that are used for TVs, monitors, and smartphones.

LX Semicon was a part of the LG Group in the past

LX Semicon was formerly known as Silicon Works. It functioned as a division of LG Group at one time. It didn’t entail any business with Samsung Electronics, a direct competitor of LG. LX Semicon was incorporated into LX Holdings Group in 2021 as part of LG Group’s move of separating many of the company’s non-core divisions. LX Semicon has since been looking towards fresh chances to increase its footprint.

LX Semicon and Samsung Display teamed up earlier this year to create DDICs for upcoming OLED smartphone panels. It will now procure these DDICs from one of Samsung’s subsidiaries (Samsung Foundry) in addition to providing DDICs to one of Samsung’s subsidiaries (Samsung Display). One of the largest semiconductor companies, LX Semicon spends more than KRW 1 trillion (about $764 million) yearly.

The agreement could help Samsung Foundry’s financial situation

A cycle where South Korean companies design, manufacture, and use a product will be created through LX Semicon’s relationship with Samsung Display and Samsung Foundry. It will improve the nation’s chip fabrication ecology, as was already mentioned. The operations of LX Semicon will also assist Samsung Foundry in establishing a presence in a sector that is experiencing its hardest time.

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