Huawei and Xiaomi invested a big capital at this OLED driver chip maker

Huawei Hubble has recently invested huge capital in Ou Rhende Microelectronics Technology, which is an OLED driver chip maker. After the investment, the company’s registered capital increased from 37.65 million to around 57.06 million, which is an increase of approx 51.56%. Alongside Huawei, Xiaomi also invested in the firm.

Established in 2019, the Ou Rhende is an OLED driver chip manufacturing company. The legal representative of the company is Zhang Jinfang with 50.91 percent of shareholdings. While Huawei Hubble is the second-largest shareholder with nearly 16.49% of shares.

This piece of information was a surprise for the whole semiconductor market. First, Huawei has begun the trial production of its own OLED driver ICs and then this investment. It shows that the company wants to develop the OLED driver chip in its home country.

It is also being said that these investments could be a threat to the South Korean and Taiwanese chip manufacturing companies, which currently capture most of the semiconductor market.

Huawei’s competitors and current market conditions of OLED driver chip industry

Looking at the current market share of the semiconductor companies in terms of OLED driver chips, Samsung grabs the market with nearly 50.40% of the market share. And the three other Korean companies account for approximately 38%.

This data suggests that the four Korean companies occupy nearly 90% of the OLED chip market. Whereas the Taiwanese chipmaker has the rest 10.2% market.

In this situation, Huawei will have to be very precise with its strategy to share its spot among these leading companies. Further, the company itself has HiSilicon to develop its own chip.

As per the recent report, Huawei’s HiSilicon is preparing to mass-produce the OLED chips in China in the first half of 2022. The company will manufacture chips based on the 40nm process and aims for a production capacity of 200,000 to 300,000 units per month. Read more

(Via – IT Home)