Fine Technix is likely aiming to enter Samsung’s supply chain for hinges used in their foldable smartphones.
The South Korean smartphone giant had so far used hinges mostly from supplier KH Vatec.
Fine Technix had said earlier this month during an investors relations conference that its new subsidiary Fine M-tech, which will be formed in September, will be manufacturing an internal hinge.
Last year in December, the company also filed patents for hinge devices used in handsets with foldable structures.
Fine Technix is likely entering the hinge sector as its supply of metal plates to Samsung, used in conventional smartphones, is expected to drop.
Samsung had up to Galaxy Z Flip 3 used metal plates but with the Galaxy Z Fold 3, it began using carbon fiber reinforced plastics.
This was because the addition of the S Pen and using a metal plate could have interrupted its signals.
Fine Technix had been the supplier of the plastics but it procures the material from a third party and the business has low profitability for the firm.
Meanwhile, S-Connect and AUFlex are also aiming to enter Samsung’s hinge supply chain.