Apple display manufacturer BOE facing production problems with OLED panels for iPhones

Apple’s supply chain has recently been hit with major production disruptions as several cities in China observe the country’s coronavirus guidelines with lockdowns to tackle a new wave of COVID-19 outbreaks. But that is not the only issue affecting the tech giant’s supply chain as the global chip shortage continues to cause problems for manufacturers.

iPhone 13

Apple supply chain continues to be affected by global chip shortage

According to a new report from TheElec, Chinese display manufacturer BOE is expected to continue facing production problems with OLED panels for iPhones due to the ongoing global chip shortage.

BOE was initially expected to supply 40 million units of OLED panels for iPhones this year but the shortage of display driver chips has reduced the goal to 30 million units. Sources say the goal of 30 million units is unlikely to be met if the situation continues as is.

BOE’s production volume for the panels had dropped since February due to the shortage is display driver ICs but its supply position has worsened as the yield rate for the panels also seems to be an issue. The display maker’s production problems are expected to continue till May, sources revealed to the publication.

The report also notes that LG Display, which also provides Apple with OLED panels for iPhones, is in direct competition with BOE in procuring display driver ICs as both use LX Semicon as a supplier for the chips.

LX Semicon has opted to supply to LG Display first due to the situation. Samsung Display doesn’t have this problem as it procures display driver ICs from Samsung System LSI, a big company, which has an advantage in securing foundry __ contract chip-making __ capacities for the display driver ICs it designs.

With ongoing lockdowns in China, various industries are experiencing delays in production. While the Chinese government has urged several industries to resume production, manufacturers still expect uncertainties in the near future.

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About the Author

Asma is an editor at iThinkDifferent with a strong focus on social media, Apple news, streaming services, guides, mobile gaming, app reviews, and more. When not blogging, Asma loves to play with her cat, draw, and binge on Netflix shows.

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