[THE INVESTOR] Samsung Electro-Mechanics and Interflex are beefing up production of flexible printed circuit board, or FPCB, for Apple’s upcoming iPhone 8, the first iPhone to adopt organic light-emitting diode screen.
According to The Bell on March 6, Samsung Electro-Mechanics, a parts unit of Samsung, has started the expansion work for its Vietnam plant, worth 100 billion won (US$88 million), while Interflex plans a new 100 billion won investment in the production later this year.
FPCB connects chips for each parts such as display and camera. Apple will secure the part for its new OLED iPhone from three Korean suppliers, including the Samsung unit, Interflex and BH.
Apple is expected to adopt OLED for about 60 million units or 40 percent of the iPhone 8 this year and double the adoption next year. It aims to use OLED for all its new iPhones by 2019.
Orders for each supplier will be decided when the production starts in April or May.
Samsung Electro-Mechanics is expected to make the smallest part considering its production capacity stands at about a monthly 90,000 square meters. With the planned expansion, the figure could be almost doubled.
Interflex produces a combined 295,000 square meters in China, Vietnam and Korea, while BH has increased its production capacity to 220,000 square meters with the production expansion at its Vietnam plant.
By Lee Ji-yoon (firstname.lastname@example.org)