Novatek faces AI infrastructure squeeze, pins growth ramp-up on new products

What happened

Novatek Microelectronics, a leading Taiwanese display driver IC (DDI) design house, hosted its quarterly earnings conference last week. President and Vice Chairman Steve Wang stated that third-quarter 2026 revenue reached the upper end of its guidance, propelled by seasonal stock-up demand from smartphone clients that drove strong shipment growth in small- and medium-sized DDIs. Small- and medium-sized DDIs accounted for 37% of total revenue during the quarter, while system-on-chip (SoC) revenue share declined from 52% in the second quarter to 46%. The quarter-over-quarter compression in gross margin reflected this product-mix shift, as well as the timing lag between rising input costs and product price adjustments.

Impact and signal

Affected components and suppliers

Source and time

Source: DigiTimes Asia · 11/9/2026 · View original source