TSD have had discussions with key peoples from key and main display and touch IC brands in the past weeks, we would like to make some 

summaries for our discussions, and also we as a professional display solution provider,  we would like to share an objective and professional 

industry judgment to help you avoid supply shortage and cost fluctuation risks in advance.

Driven by the AI industry, global 8/12-inch mature process wafer capacity is continuously occupied by high-margin AI chips. Display driver IC and touch IC have been placed at a lower production priority, resulting in a structural supply shortage that will last for 2 years.

Key Forecast (2026–2027)
Supply: Lead time will extend to 24-32 weeks for industrial/automotive/medical grade ICs, with quota supply for mainstream models(happening now,like ST7789V2 and ILI2511 etc).
Cost: IC prices have increased by 15–30% in 2026 already, and will maintain an upward trend in 2027 with no room for price reduction.
Risk: Material replacement is difficult for industrial & medical & Automotive long-life projects, which may directly cause production suspension and delivery delays.

• 
  TSD Professional Suggestions
  To protect project stability, we sincerely recommend you:
  1. Lock down 6–12 months demand in advance to secure IC capacity and fixed price (no matter projects with TSD or not with TSD).
  2. Complete alternative material verification early to avoid single-source supply risk.
  3. Establish safety stock for long-lead-time components.

We always put your project delivery and cost control first. TSD will fully support you on demand planning, solution locking and inventory 

preparation to minimize risks for your business. 

Please feel free to contact us for further in-depth technical and commercial discussions.