In 2014, Chipone introduced two source drivers and two gate drivers respectively targeted for high-resolution, large-size LCD screen. With different combinations of four devices it meets requirements all High Definition (HD) and 4K × 2K TVs in the market. After the launch of the product, we cooperate closely with BOE to verify them in the 32-inch HD and higher definition products. After six months continuing efforts, during which manufacturers perform comprehensive certification in electrical performance, picture quality, reliability and other aspects, all parameters achieved good level, and officially announced it is ready for mass production.
The news is exciting for Chipone and Chinese LCD drivers market! It created a new history, breakthrough the situation that almost 100% of global HD LCD TV chips are replying on Taiwanese, Korean and Japanese manufacturers. Chipone LCD driver’s mass production status in the BOE 32-inch TV screen means this absolute monopoly situation is beginning to change, the "0" to "1" breakthrough has been achieved.
With the rapid rise of China's panel makers, in large extent the “only a few panels” environment has been largely reversed, however the "lack of core chips" situation still continues and is difficult. China's IC self-sufficiency rate is 10% only, flat display driver chip self-sufficiency rate is 5% only, while the HD and 4K × 2K LCD Driver self-sufficiency rate is 0. The "lack of core chips" problem seriously threatened the mainland flat panel display industry. In recent years, a number of flat-panel display technology IC design companies have been emerged in China, however due to technology and market limitation none of them was able to go to mass production successfully. Under this circumstance, without hesitation Chipone started the research and development and promotion effort to the display driver products, company experienced lots of difficulties and setbacks. Chipone has always uphold a solid, rigorous, high standards of working attitude, extreme efforts and persistence, as well as the correct judgement of the market and control, achieved today's breakthrough result.
The "0" breakthrough on 32-inch TV screen LCD Driver localization rate is only the beginning of a difficult journey for Chipone. That market is almost monopolized by Taiwanese, Korean and Japanese manufacturers. Competition is intense, product prices fell year by year, and gross margin has dropped to the industry's lowest level. At present, the first-tier manufacturers’ gross margin is only about 25%. There are a lot of pressure to the second and third tier and new manufacturers. Although Chipone’s LCD Driver starts supplying to the domestic first tier panel manufacturers supplier, it will face a huge challenge in the future. In order to take the initiative in the market competition, the gross margin of the product line is expected to remain low for a long time.Everything is difficult at the start, since we have achieved the "0" breakthrough, we have confidence to become the industry leader and contribute to China's flat panel display industry.
Chipone has accumulated a lot of technical and experience, in the high drive voltage, high operating frequency, large number of channels aspects through long-term solid R & D work. The source and gate driver chips that we provided can support from 32 "HD to 98" 4K × 2K TV. Product reliability has been affirmed by customers, performance in power dissipation, ESD and other aspects are better than the existing mass production products.In the future, the company will gradually carry out cooperation with panel manufacturers like China Star, Tianma, IVO and others, and grow together with China's flat panel display industry to a new level.