In the fourth quarter of last year, IDT shipped and revenue continued to grow, but the ASP of the traditional touch and driver ICs declined and the gross margin was not as good as expected.
Looking forward to the first quarter, Dunhuang traditional off-season, and the weak demand for mobile phones in mainland China since the fourth quarter of last year has not improved, increasing customer demand for IDC, the decline in demand for traditional touch and driver IC, but also the impact of ASP And gross profit margin.
For 2018 year-end, InTouch's a-Si (non-silicon) HD In-Cell panels have been shipping more rapidly due to their more competitive prices. In-Cell panels of a-Si and LTPS About half of IDC shipments are expected, a-Si In-Cell panel is expected to gradually replace the traditional plug-in touch, and overall IDC shipments are also expected to continue to grow, estimated revenue in 2018 will reach 40% of the proportion of An important source of growth for operations.
In addition, Dunham's optical fingerprint recognition using IR invisible light technology, suitable for use in full-screen mobile phones, and common in AMOLED and LCD panels, the future growth potential after mass production will have imagination.
However, despite the significant increase in sales of IDC in the second half of the year, with the growth of the volume and the entry of new suppliers into the market, ASP is expected to decline rapidly and the gross profit margin will be more difficult to maintain.