Major iPhone Display Supplier to Build $250 Million OLED Factory in Vietnam

[MacRumors]

Apple supplier BOE is in talks to rent dozens of hectares of land in north Vietnam to build a plant dedicated to making OLED display panels that will likely be used in future iPhones.

The Chinese company is seeking to invest a total of up to $400 million on 100 hectares of land, half of which could be used to build a $250 million factory specializing in the creation of OLED screens, according to Vietnamese newspaper VNExpress. BOE intends to complete all of the building work by 2025.

The plan highlights efforts by Apple to move away from having its supply chain predominantly based in China, amid geopolitical tensions and disruption caused by the country's COVID-19 lockdown measures. Taiwan's Foxconn and China's Luxshare Precision Industry already make or plan to make a number of Apple products in the area, including MacBooks and iPads.

According to Apple analyst Ming-Chi Kuo, BOE is set to become the largest supplier of displays for new iPhones by 2024. The company has reportedly beaten Samsung for orders for the upcoming ‌iPhone 15‌ and ‌iPhone 15‌ Plus, and by 2024, it will start mass shipments of high-end LTPO displays for the ‌iPhone‌, making it the largest display supplier.

Earlier this week, Bloomberg reported that Apple plans to use in-house, custom-designed displays for some future mobiles devices like the iPhone and Apple Watch, although the displays would likely still be manufactured by an outside supplier.

Article Link: Major iPhone Display Supplier to Build $250 Million OLED Factory in Vietnam

 

[Mr Fusion]

The plan highlights efforts by Apple to reduce its supply chain reliance on China

… by hiring a Chinese company. Got it. 🤓

 

[T Coma]

OMG! Dozens of hectares? 😂

Anyway, how is this lessening dependence on China? The CCP is still ultimately in charge, regardless of whose hectares are under the factory.

 

[tridley68]

Come on Apple ditch China for good .

 

[JippaLippa]

🙌 Aaaaaaaaaaaaaah, 𝓓𝓲𝓿𝓮𝓻𝓼𝓲𝓯𝓲𝓬𝓪𝓽𝓲𝓸𝓷 🙌

 

[Obioban]

The more they can get production out of China, the better.

 

[Someyoungguy]

Seems like maybe yesterday’s rumor about micro-LED in the near future was total BS.

 

[cardfan]

So a 250m factory for apple to drop oled and supposedly manufacture their own micro led screens later in China.

 

[ColdShadow]

I always said those who think Apple's plans to move iPhone production from China to India is "to reduce dependancy on China" are simplistic and wrong.

here's another proof: switching from tried and tested high quality, and leading display manufacturers (LG and Samsung display) to a cheap Chinese company (BOE).

this move just like Apple's plans to move production to India only has one purpose : cheaping out and making even more profit.

it's very disappointing.

 

[azentropy]

I always said those who think Apple's plans to move iPhone production from China to India is "to reduce dependancy on China" are simplistic and wrong.

here's another proof: switching from tried and tested high quality, and leading display manufacturers (LG and Samsung display) to a cheap Chinese company (BOE).

this move just like Apple's plans to move production to India only has one purpose : cheaping out and making even more profit.

it's very disappointing.

Do you think Vietnam is in India?
This article is about building/producting in Vietnam, not India.

 

[Robert.Walter]

So a 250m factory for apple to drop oled and supposedly manufacture their own micro led screens later in China.

I was wondering along these lines too.

Maybe idea is China will be too expensive for OLED so it goes to Vietnam and the panels will be used on entry level apple products and micro led will be made in China?

Except that a plant will be built I don’t think we can say what happens there with any certainty yet. (Could be the plant will be constructed so as to be capable of easy conversion to micro led.)

 

[wood1208]

Once Apple's microLED screen start rolling out; Apple can control advancement and cost of display for it's products. Apple is already moving away from dependency on Qualcomm and Broadcomm components then why not display.

 

[CarAnalogy]

… by hiring a Chinese company. Got it. 🤓

Yeah this seems more like the Chinese relying less on manufacturing in China.

 

[realeric]

Apple, please don’t grow up Chinese companies. It will bite you in future.

 

[DBZmusicboy01]

I only trust Samsung & LG

 

[Razorpit]

The more they can get production out of China, the better.

Read the article. It's still a China operation, just a different zip code.

Do you think Vietnam is in India?
This article is about building/producting in Vietnam, not India.

The article is about a Chinese company building a factory in Vietnam.

 

[TheYayAreaLiving 🎗️]

Glad to see it's not in China. Hopefully, we see new Apple products saying, "Assembled in Vietnam".

 

[Obioban]

Read the article. It's still a China operation, just a different zip code.


The article is about a Chinese company building a factory in Vietnam.

The CCP likes to forcefully take over companies in China when companies leave. When trade relations with China completely break down, I'd expect to see that go both ways.

Beyond that, the underlying problem Apple is having with moving out of China is that all the supporting industry that makes the parts are primarily located in China. The more main component production (e.g. screens) moves out of China, the more supporting industry (part suppliers for the screens, in this case) also move out of China. In this particular case, rumors are that Apple may be getting into making their own screen. Much easier to set up shop to do that in Vietnam if screen component suppliers are already doing business in the area.

 

[Chazak]

I always said those who think Apple's plans to move iPhone production from China to India is "to reduce dependancy on China" are simplistic and wrong.

here's another proof: switching from tried and tested high quality, and leading display manufacturers (LG and Samsung display) to a cheap Chinese company (BOE).

this move just like Apple's plans to move production to India only has one purpose : cheaping out and making even more profit.

it's very disappointing.

You could not be more wrong. It seems you don't really understand what they are doing in Vietnam or India or Apple's QA systems.

 

[iamgalt]

Apple, please don’t grow up Chinese companies. It will bite you in future.

It'll bite us all in the future.

 

[wankey]

Vietnam is a communist country. India is corrupt. The only reason China is even a threat is because China has gotten way stronger than we want them to.

Let me know what happens when India grows stronger, we're going to enter into a new whole era of anti-indian news cycle.

 

[james2538]

Seems like maybe yesterday’s rumor about micro-LED in the near future was total BS.

Much like self-driving cars, microLED tech is always 2-3 years away.

On a real note, I don't that rumors staying the Apple Watch is going to be first to get a microLED display is wrong. It would make sense to put it in a small screen lower volume product. Once we see it in Apple product it won't be wrong until the technology spreads to the rest of the lineup.

 

[Eldaerenth Faexidor]

Vietnam is a communist country. India is corrupt. The only reason China is even a threat is because China has gotten way stronger than we want them to.

Let me know what happens when India grows stronger, we're going to enter into a new whole era of anti-indian news cycle.

This comment has merit. India is a very complex and corrupt country including structural human rights violations. But since the last pandemic everybody has to hate on China. I’m not a fan of both countries as they undeniably run sweatshops to assemble our beloved iPhones. Apple should move away from sweatshops. They care about the environment, they care about the gay community but don’t seem to care much about ill-treated Asian people who are forced to work in crowded with very poor, socially unacceptable or illegal working conditions. But hey, who cares right?

 

[ackmondual]

Read the article. It's still a China operation, just a different zip code.


The article is about a Chinese company building a factory in Vietnam.

In the end... an American company, using a Chinese factory, in Vietnam. Has a decent ring to it, even if it's not what we were quite hoping for :\

 

[Obioban]

Vietnam is a communist country. India is corrupt. The only reason China is even a threat is because China has gotten way stronger than we want them to.

Let me know what happens when India grows stronger, we're going to enter into a new whole era of anti-indian news cycle.

Having their supply chain spread out over many countries, instead of all concentrated in on district of one country (that is likely going to stop trading with the USA at some point), makes Apple more resilient. Ignoring all moral implications of everything, anything that ends Apple's ability to produce in China (trade break down, Chinese invasion of Taiwan, China deciding to hurt the USA by going after Apple-- whatever) would largely end Apple's ability to function for years.