Selection will be completed by the end of the year... full-scale development
Apple visited Korea last month to meet with companies
Interested in an electronic component company with experience in mass
Selection will be completed by the end of the year... and begin full-scale development
Apple visited South Korea last month to meet with companies
Interested in an electronic parts manufacturers with experience in mass production
Some companies formed a ‘Task Force' and are actively responding
The domestic parts industry has started a war to enter the supply chain management (SCM) of Apple's self-driving electric vehicle 'Apple Car’. Apple is expected to complete the selection of an Apple Car supplier within this year, and start its full-scale development. Apple is highly interested in South Korean companies in the field of its core parts.
According to the parts industry on the 11th, Apple staff members visited South Korea last month and met with several domestic parts manufacturers. This is the second visit since Apple the last summer. Apple discussed batteries for electric vehicles with LG and SK.
It is believed that Apple started discussing Apple car parts with a domestic electronic parts manufacturer since the end of last year. Specific Apple car specifications and performance have not been confirmed yet.
It is understood that Apple is looking for several South Korean electronics manufacturers to plan the final lineup of supplying Apple cars. It is reported that Apple is showing great interest in electronic parts companies that have experience in mass production.
According to the industry, Apple showed a genuine attention to the point of proposing an equity investment in one of the domestic electronic parts manufacturers. It also demanded the company's electronic parts production capacity to increase by two-folds. It is unknown whether the company that received the offer accepted Apple's offer.
After having a face-to-face meeting with some parts manufacturers, Apple will continue to discuss the parts through online meetings. It is understood that there are no specific information or discussions related to specifications as it is still in the very early stages.
An official from the parts industry said, "The business related to Apple Car is being done under the surface. If the information is leaked a company, then the company may be removed from the supplier candidate. It is being handled very carefully.”
Some parts manufacturers working with Apple on smartphones have even set up a task force to actively respond to the Apple car business. In the battery sector, which is a key component for electric vehicles, Apple is actively seeking for South Korean companies. It is reported that Apple has set up a policy to develop and manage Apple car battery materials directly. Apple is considering collaborating with a South Korean company in the midst of U.S.-China trade dispute.
It is not easy to enter the Apple car business because Apple is proposing more strict and demanding conditions than its smartphone business.
An official from the parts industry said, "There are many parts companies that do not even consider becoming partners because the conditions that Apple car business demands are so harsh. And security is very strict, so sharing information is not easy.”
According to foreign media, the 'Apple Car' is expected to unveil as early as 2024. It is predicted that the parts SCM system will be established within this year. And Apple cars will be developed, disclosed, and mass-produced for two to three years.
By Staff Reporter So-ra Park (email@example.com)