BOE is expected to continue facing production problems with OLED panels for iPhones due to the ongoing chip shortage, TheElec has learned.
The Chinese display panel maker’s production volume for the panels had dropped since February due to the shortage in display driver ICs, as reported by TheElec earlier. The yield rate for the panels also seems to be an issue, sources said.
BOE’s production problem from the situation is expected to continue up to at least May, they added.
LG Display, which also manufactures 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.
BOE has been expected to supply 30 million units of OLED panels for iPhones this year with the company aiming for up to 40 million units, but this goal is unlikely to be met if the situation continues, the sources said.
BOE’s new factory B12 at Chongqing was experiencing a low factory operation rate. It is the company’s third Gen 6 (1500x1850mm) flexible OLED panel factory. It initially planned to manufacture OLED panels for Oppo but scrapped this plan due to low price competitiveness and is only manufacturing automotive OLED panels at the current time, sources said.
