Samsung Galaxy Z Fold8 Faces DDI Supply Tightness Amid Stronger-Than-Expected Demand

Samsung Electronics' Galaxy Z Fold8 is facing a tight supply of display driver integrated circuits, or DDIs, after demand for the passport-style foldable phone came in above expectations. According to ChainCatcher, Samsung is increasing orders for components and plans to redirect DDI supply originally reserved for next year's development into this year's mass production. The DDI is designed by Samsung's System LSI division and manufactured by Taiwan foundry UMC using a 22-nanometer process. UMC's capacity for that process is already at its limit, making it difficult to accelerate the production schedule. Industry sources said UMC is also using the 22-nanometer line to produce other chips, and Samsung's request for super-rush service was rejected. A standard wafer-to-finished-product cycle takes about four months before the parts are assembled with Samsung Display OLED panels into phones. Samsung is also increasing orders for hinges and ultra-thin glass, or UTG. Demand for the Galaxy Z Flip8 is said to be below expectations, while Apple also plans to launch a passport-style foldable product in the second half of this year.