[News] Samsung Reportedly Eyes Galaxy S27/S28 DDI Dual Sourcing Beyond System LSI Amid Rising Memory Costs

Samsung Electronics’ System LSI division may no longer remain the sole supplier of display driver ICs (DDIs) for the Galaxy S series. According to ZDNet, citing industry sources, Samsung is considering a dual-source DDI supply chain for some Galaxy S27 models and the Galaxy S28 Ultra. DDIs are chips that control OLED pixels through thin-film transistors (TFTs). Samsung Display has reportedly requested price quotations from Taiwan’s Novatek and other suppliers for DDIs for the 2028 Galaxy S28 Ultra, while Samsung Electronics’ Mobile eXperience (MX) division will make the final supplier selection.

The report comes as Novatek continues to expand its presence in the OLED DDIC market. According to Tai Sounds, the company successfully entered Apple’s OLED display driver IC (DDIC) supply chain last year and expects the business to support revenue growth in 2026 and 2027. Regarding order visibility into 2028, Novatek said development of OLED DDICs for international smartphone customers is progressing smoothly, with the project expected to contribute to revenue over the next several years.

Meanwhile, for the Galaxy S27 series, System LSI has reportedly secured exclusive DDI supply for the Ultra and Pro models, while other suppliers are still being evaluated for the standard and Plus variants, according to the report.

The push toward dual sourcing reflects mounting cost pressures. ZDNet notes that Samsung Electronics’ MX division and Samsung Display are exploring the strategy to ease profitability pressures stemming from rising component costs, particularly memory chips. The surge in memory prices has weakened the global smartphone market while also weighing on the MX division’s profitability.

Chosun Ilbo reports that Samsung Electronics’ MX division posted its first-ever quarterly operating loss in the second quarter, reporting a deficit of KRW 700 billion. ZDNet also notes that the MX division withheld smartphone shipment figures for the second consecutive quarter after also omitting them in the first quarter. Until last year, the company had consistently disclosed shipment volumes alongside its quarterly earnings.

Samsung’s Galaxy S DDI Supply Chain Opens Beyond System LSI

Still, ZDNet notes that even if Samsung adopts dual sourcing for some Galaxy S27 models and the Galaxy S28 Ultra, System LSI is expected to remain the primary DDI supplier, although increased competition could put downward pressure on DDI prices. The report adds that any dual sourcing for the Galaxy S27 series is likely to be phased in gradually, with limited initial volume due to the tight development timeline and expected shipment plans.

Samsung Electronics’ OLED smartphone DDI supply chain currently includes South Korea’s DB GlobalChip, Anapass, and Wonik D2I, along with Taiwan’s Novatek. These suppliers currently provide DDIs for lower-tier models, including the Galaxy A series, according to ZDNet.

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