LG Display is shaking up its supply chain for iPhone OLED panels. According to reports from Korean media outlet
The Elec, it is bringing in Taiwan company Novatek as a new supplier of DDI chips.
This move likely aims to reduce production costs, especially as both LG Display and Samsung Display, the top supplier of Apple’s OLED displays, reportedly grapple with challenges in manufacturing the upcoming
iPhone 16‘s panels due to a new design with slimmer borders.
Adding Novatek alongside its current supplier, LX Semicon, shows that LG Display aims to diversify its DDI chip suppliers. DDI chips, short for Display Driver Integration chips, are specialized components that translate digital image data from a device’s graphics processor into signals a screen can display.
By introducing another supplier, LG Display gains leverage for potentially better pricing and avoids dependence on a single source, which could cause delays if that supplier faces issues.
Both LG Display and Samsung Display are reportedly facing difficulties in achieving their desired yield rates for the iPhone 16‘s OLED panels. This can be attributed to a new design choice by Apple – iPhone 16 will reportedly feature a significantly reduced bezel on the bottom.
LG Display’s decision to diversify its supply chain is a strategic move to tackle these challenges and maybe even snag a cost advantage. We’ll have to wait and see how bringing in Novatek affects production efficiency and the overall quality of the panels.
Either way, both LG Display and Samsung Display will have to fine-tune their manufacturing processes to meet Apple’s yield rate targets for the
iPhone 16.
Previous reports suggest that Apple will use a new tech called BRS (Border Reduction Structure) to get ultra-thin bezels on the
iPhone 16. Reportedly, both Samsung Display and LG Display will use the tech. Usually, Apple saves new tech for the Pro models, but the BRS tech might be for all four models.
However, earlier rumors suggest that the iPhone 16 and iPhone 16 Plus might not undergo any display changes, while only the iPhone 16 Pro and iPhone 16 Pro Max could feature larger displays with slimmer bezels. So, we’ll just have to wait and see what Apple has in store.
The next-generation iPhone is anticipated to make its debut in September this year. As we approach the launch date, we can expect more leaks and rumors to surface, so stay tuned for updates.
