Due to chip shortages, Korean media reported that BOE is expected to continue to face production problems with iPhone OLED panels.
BOE’s panel production has been declining since February due to a shortage of display driver ICs (DDI), sources said, and the yield of PV panels also appears to be an issue, with BOE’s production problems expected to continue until at least 5 month.
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Moreover, LG Display, which also produces iPhone OLED panels, is in direct competition with BOE for the purchase of DDI. The two companies have a common supplier, LX Semicon, and the company chose to give priority to LG Display.
Furthermore, Samsung Display does not have this problem because its Samsung System LSI purchases DDI, a large company that has an advantage in gaining foundry capacity for the DDIs it designs.
BOE expects to supply 30 million OLED panels for iPhones this year, the sources said, and the company is targeting a maximum of 40 million, a goal that is unlikely to be achieved if this continues.
In addition, the operating rate of BOE Chongqing’s new B12 plant is relatively low. This is the company’s third Gen 6 (1500x1850mm) flexible OLED panel factory. According to sources, BOE originally planned to produce OLED panels for OPPO but abandoned this plan due to low price competitiveness, and currently only produces OLED panels for automobiles.
