TF with domestic substrate companies... Discussing supply
Exchanged samples... Passed reliability test
Rush to select company due to supply shortage of substrates
Technology beats Taiwanese and Japane
Apple cars, self-driving electric vehicles developed by Apple, will be equipped with Korean Flip-chip Ball Grid Array (FC-BGA) substrates. It is expected to have an impact on the market as it beat Taiwanese and Japanese companies, which are the main players in the market. Apple will complete the selection of Apple Car Supply Chain Management (SCM) within this year and start developing a prototype.
It has been revealed that Apple is discussing the supply of FC-BGA substrates after setting up a task force with a domestic substrate company. The FC-BGA substrate is a high value-added printed semiconductor circuit board that connects a semiconductor chip to the main substrate. It is a key component that is necessary in order to complete an autonomous vehicle. Supply discussions have progressed considerably. It was found that the company exchanged FC-BGA samples with Apple Car's working-level staff and even passed the initial reliability test (quality) before mass production.
The reason Apple is rushing to select a substrate manufacturer over other parts is due to the substrate supply shortage. Currently, FC-BGA substrates have a serious supply and demand imbalance due to manufacturers' failure to predict demand, and explosive demand for information technology (IT) devices. Some predict a FC-BGA supply shortage by 2026. Apple's strategy is to secure key parts for self-driving cars in advance. Apple is expected to unveil Apple cars as early as 2024.
It is also expected that the global substrate market will change. Japanese and Taiwanese FC-BGAs have a longer history in the industry and a higher global market share than Korea. Korean companies are relatively new in the FC-BGA market. However, Apple reportedly gave Korean companies a high score on the speed of their technological development and response time. It is predicted that it will quickly gain global competitiveness in the FC-BGA industry by strengthening its competitiveness in other high value-added substrates with similar FC-BGA structures and production systems. Apple is reportedly even discussing large-scale facility investments in the company.
The specification and performance details of the Apple Car have not yet been confirmed. In particular, Apple plans to confirm the final SCM after they find several Korean electronics and substrate companies. An official from the parts industry said, “Apple has the highest interest in Korean companies in key parts such as cameras, substrates and batteries," and “They are actively selecting SCMs behind the scenes.”
By Staff Reporter Sora Park (srpark@etnews.com)