Apple is reforming its Rigid Flexible Printed Circuit Board (RFPCB) supply chain management for smartphones. RFPCB is a key part that connects the Organic Light Emitting Diode (OLED) panel with the motherboard. Due to quality problems that occurred in some companies, Apple is looking for new Korean companies. A significant impact is expected in the parts industry since Apple’s RFPCB is 100% made in Korea.
It was found that company A, a domestic mid-sized company is currently undergoing the smartphone RFPCB Performance Test (Qual) from Apple. The company has not yet supplied PCBs to Apple. RFPCB is a solid substrate, it also has the flexibility to be folded. The easier it becomes to design smartphone products, the higher the value added than the Flexible Circuit Board(FPCB) used in existing smartphone. RFPCB will be supplied to Apple OLED display suppliers and eventually be installed into iPhones.
Apple rushed to find new suppliers was due to quality problems that surfaced in the existing companies. The company supplied some RFPCBs for Apple’s newly released iPhone products, but the volume was reduced significantly in comparison to the previous model. Problems such as defect rate and yield were brought up. As a result, Apple’s RFPCB first vendor has been supplying 80% of the iPhone 14. It is the greatest percentage of supply ever.
Apple has maintained its multi-vendor strategy, encouraging competition by being supplied for even a single part by as many companies as possible. It seems that they have accelerated the SCM reform to change the current situation where parts supply is concentrated to a single company. If the new company passes the Qual Test, it is expected that they will supply RFPCB starting with the next product, the iPhone 15.
Apple’s iPhone RFPCB is mainly supplied by mid-sized domestic companies because Samsung Electro-Mechanics withdrew its RFPCB business last year. For this part at least, Apple relies entirely on Korean companies. Company A, a mid-sized parts company that Apple is interested in as the new supplier, is reportedly making all-out efforts to pass the Apple Qual test. However, this company has no history of supplying RFPCBs and lacks investment capacity, etc., so the process of passing the qual test is not smooth. If a new supplier passes the quality test and is selected, the sales of the existing suppliers may decrease in series.
Reporter So-ra Park (srpark@etnews.com)