China-based manufacturer and component suppliers have crossed into the supply chain of Apple and are gaining increased orders from the vendor with China-based Luxshare already becoming a key assembler of the AirPods and having a chance to make the Apple Watch and iPhones in the near future. BOE has also been selected as an OLED panel supplier for iPhones, but will not supply the initial batch of Apple's 5G iPhone shipments. At the same time, Taiwan-based backend firms have increased their capacities in a bid to satisfy MediaTek's extra orders, while many foundries have witnessed a deceleration in orders for automotive-related chips.
China-based Luxshare rising fast with potential threats to iPhone assemblers: China-based AirPods assembler Luxshare Precision Industry has seen increasing presence in the supply chain of Apple devices, and may have a chance of winning Apple Watch assembly orders and moving further to assemble iPhones eventually, according to industry sources.
Initial 5G iPhone shipments reportedly not to feature BOE OLED panels: BOE Technology will not be in the supplier list for the first batch of panel shipments for Apple's 2020 iPhone lineup as the Chinese maker has failed to secure Apple's validation for its OLED screens, according to sources familiar with the matter.
Backend firms raising capacity support for MediaTek: Taiwan's backend firms are moving to increase capex in the second half of 2020 to expand capacity to fulfill additional orders from MediaTek which is strengthening presence in 5G SoCs, Wi-Fi 6 chipsets and networking solutions, according to industry sources.
Foundries see cutback in orders for auto chips: TSMC and other pure-play foundries have seen their mature process capacity utilization rates decline, due mainly to a substantial cutback in orders for automotive electronics applications, according to industry sources.