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Global Semiconductor Shortages: BOE is Having Trouble Producing iPhone Displays

Yusuf Balogun
Yusuf Balogun
Yusuf is a law graduate and freelance journalist with a keen interest in tech reporting.

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Due to the ongoing global chip shortage, the Chinese display panel maker, BOE Technology is reportedly unable to make as many OLED iPhone panels as expected.

According to a report from The Elec, due to the ongoing worldwide semiconductor scarcity, BOE is having trouble producing OLED panels used in iPhones. It goes on to say that the products will be affected this month and next.

LG Semicon, which is delivering display driver ICs to BOE for the Apple iPhone screens, is falling short of the planned goal, and the business is supplying the display driver ICs to LG Display before BOE due to a lack of production capacity from foundries.

This means that starting next month, BOE will reduce its OLED panel production capacity from three million to two million units.

According to reports, Apple has placed an order with BOE for up to 10 million OLED panel modules in the first half of 2022.

However, it is unclear whether the display production issues will have an influence on Apple iPhone production or supply at this time, although that seems unlikely considering that Apple isn’t reliant on a single supplier.

BOE is scaling up the manufacturing of flexible smartphone OLED panels, and three of its existing plants are being converted into Apple OLED suppliers.

Previously, the display panel maker was anticipated to produce 30 million OLED panels for iPhones this year, with the business aiming for up to 40 million, but this goal is unlikely to be realized if the current scenario continues.

BOE’s new facility B12 in Chongqing had a low factory operation rate. With a capacity of 1500x1850mm, it is the company’s third flexible OLED panel factory. According to insiders, it had planned to make OLED panels for Oppo initially but rejected the proposal due to low price competitiveness. It now only makes OLED panels for automobiles.

With this development, the corporation is on track to surpass LG Display as the second-largest supplier of OLED panels for iPhones by 2023.

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