Unauthorized design changes by BOE or loss of 30 million iPhone 14 screen orders?; TSMC plans to build a new chip manufacturing plant in Singapore

1. Unauthorized design changes by BOE or loss of 30 million iPhone 14 screen orders

On May 21st, according to foreign media reports, after discovering that BOE had changed the screen specifications set by Apple without permission, Apple is considering canceling up to 30 million iPhone 14 OLED screen orders granted to the company.

It is reported that BOE has changed the circuit width of the thin-film transistor (TFT) on the iPhone 13, possibly to improve yield. After changing the design, the screen may become thicker, making it easier to manufacture.

Apple discovered these changes in February 2022 and has requested BOE to cease production. The direct result of this incident is that it is said that BOE has not yet received orders for Apple's iPhone 14 OLED screen.

According to anonymous sources, BOE has dispatched C-level executives (Chief Technology Officer or CEO) to lead an unknown number of employees to Apple's headquarters in Cupertino to coordinate the matter and explain their reasons for changing Apple's initial design.

It is currently unclear about Apple's response, but it is said that the BOE team has requested Apple's approval to produce the iPhone 14 OLED screen, and the company has not yet received a clear response from Apple.

It is reported that Apple is interested in ordering 30 million iPhone 14 OLED screens from BOE, but the company is now more likely to choose between Samsung Display and LG Display. It is reported that Apple hopes to provide over 150 million OLED screens for the iPhone 14 series, higher than the initial planned order of 140 million.

However, it is expected that the production of the iPhone 14 screen will not begin until June at the earliest. Among them, Samsung is expected to produce screens for the 6.1-inch and 6.7-inch iPhone 14 Pro models, while LG is expected to supply screens for the 6.7-inch iPhone 14 Pro Max.

BOE's two factories in China produce organic light-emitting diode panels for iPhone 12 and iPhone 13, accounting for 10% of all iPhone screen supply in 2021. However, the company has always planned for large-scale expansion to replace LG Display as one of Apple's main suppliers of iPhone screens by 2023.

In addition to making unauthorized changes to Apple's design, BOE is also facing the challenge of a shortage of display driver chips, which are also one of the components with the most shortage in global chip supply.

The global chip shortage is caused by various factors. These factors include the increased demand for chips during the pandemic, production disruptions related to the pandemic, and the growing demand for chips from car manufacturers, as cars rely on an increasing number of microprocessor units.

The biggest problem in the chip supply shortage crisis is not the shortage of CPUs and GPUs, but rather the shortage of more common chip supplies, such as display drivers and power management systems. These chips with relatively low technological content are used in a large number of devices, including Apple's devices.

2. TSMC plans to build a new chip manufacturing plant in Singapore

According to foreign media reports, TSMC is considering building a chip manufacturing plant in Singapore to help address global supply shortages.

A source familiar with the matter said that a final decision on the plan has not yet been made, and the details of the plan are still under discussion, but preliminary negotiations include the construction of a large factory costing billions of dollars. He also said that the Singapore government may help provide project funding.

However, in response to this news, TSMC replied to the media last night, "We do not rule out any possibility, but TSMC currently has no specific plans

It is understood that TSMC has an 8-inch chip factory in Singapore. The factory was jointly established in 2001 by TSMC, Philips Semiconductors, and the Singapore Economic Development Board's Investment Division (EDBI).

According to media reports, TSMC is considering producing 7 to 28 nanometer chips at this new factory, which are mainly used in automobiles, smartphones, and other consumer electronics.