Samsung is moving to avoid future shortages of display driver ICs (DDIs) after a DDI shortfall for the Galaxy Z Fold 8 forced the company to cut September production plans by 10% and shift that volume to October, a change that affected sales and revenue.
UMC had been the sole supplier of DDIs for the Galaxy Z Fold 8. When demand exceeded Samsung’s expectations, the company urgently asked UMC to produce additional display chips; UMC refused because its 22nm production lines were already running at full capacity and adding the order would have delayed production for other clients.
DDIs: Samsung considers GlobalFoundries as an alternative
To prevent similar manufacturing bottlenecks, Samsung is actively reviewing a strategy to source DDIs from GlobalFoundries in addition to UMC. The company is reportedly examining GlobalFoundries’ 22nm and 28nm production facilities in Germany and Singapore. If Samsung proceeds with the plan, DDIs made by GlobalFoundries will likely be used in entry-level and mid-range Galaxy A series phones by the end of 2027.
The review takes place against a broader industry backdrop: rising prices for memory chips and processors have pushed Samsung and other brands to increase phone prices, which coincided with a 20% year-over-year drop in global smartphone sales during Q3 2026.
