UPDATED. 2024-05-24 09:24 (금)
Korea Circuit and DAP’s smartphone board supply to Samsung to stay level this year
Korea Circuit and DAP’s smartphone board supply to Samsung to stay level this year
  • Gijong Lee
  • 승인 2022.03.07 11:37
  • 댓글 0
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Korean tech giant continues to keep the supply of boards even among suppliers
Image: DAP
Image: DAP

South Korean printed circuit board (PCB) makers Korea Circuit and DAP are expected to supply a similar amount of smartphone boards to Samsung this year as they did in 2021.

The pair are each expected to supply late-20% of the total boards that Samsung plans to procure for its smartphones this year, people with direct knowledge of the matter said.

Korea Circuit and DAP combined will be supplying mid-50% of the boards used by the South Korean tech giant this year. The remaining 40% will be supplied by Japanese firms Ibiden and Meiko.

Samsung uses high-density interconnect (HDI) boards on its smartphones.

Samsung Electro-Mechanics and Daeduck Electronics once dominated the supply of HDI boards to the South Korean tech giant but the companies exited the sector in 2019 and 2020, respectively.

Following these companies’ exit, Korea Circuit and DAP saw their share increase to around a combined 50%.

Samsung is likely procuring similar amounts of boards from the four suppliers this year as it did in 2021 for a stable supply chain in light of the uncertainty around the Covid-19 pandemic.

Korea Circuit and DAP’s earnings this year will depend on how well Samsung Mobile performs this year.

Revenue from Samsung accounts for up to 50% of Korea Circuit’s revenue, while DAP relies on the tech giant for up to 75% of its revenue.

Korea Circuit is seeing higher revenue every year from its flip-chip ball grid array (FC-BGA) business, but HDI still accounts for the majority of its revenue.

The pair will be supplying HDI boards for the Galaxy S22 smartphones and new foldable phones launching later this year.

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