Apple developing own OLED for iPhone 8; Samsung aiming to supply chip

Apple is reportedly developing its own OLED technology, perhaps to boost the production of the upcoming iPhone 8 and its successors. Meanwhile, Samsung, the Mac maker’s rival, intends to triple its chip-making business in hopes of providing Apple the necessary components of its iOS-based mobile devices.

To lessen its dependence on Samsung for OLED panel supply, Apple is reportedly working on its own 2.5G panel line for product development in Taiwan. In order to do that, the iPhone 8 maker has acquired Korea-based Sunic System’s evaporators, according to ET News (via Digitimes). Japan-based Canon Tokki, which currently dominates the evaporator industry, certainly has its work cut out for the company.

Canon Tokki may potentially see its strong hold on the market slip with Apple’s move. Presently, the company is Samsung’s main source of evaporators, and the South Korean tech titan is the beneficiary of the majority of Canon’s overall output. Other customers of Canon Tokki include LG, Google and Xiaomi.

Samsung, meanwhile, wants to triple its contract chip manufacturing business’ market share in the next five years. In order to achieve that goal, the company is set to “aggressively” pursue and add clients – including Apple – according to a senior Samsung exec. TSMC is currently the global leader among contract chipmakers, and Samsung intends to be a strong second placer.

TSMC currently supplies all of the A-series chips for Apple’s new handsets and tablets. Last year, it held over 50 percent of the entire contract industry compared to Samsung’s less than eight percent grip. Despite already having patrons like Qualcomm and Nvidia, Samsung needs a big chunk of Apple’s orders to jumpstart things, especially since it hasn’t been the Cupertino-based giant’s main chip supplier since the iPhone 6s came out.

“You need a technology that can wow your clients,” ES Jung, executive vice president and head of the new Samsung foundry division, said, as quoted by Reuters. “Without such advanced technology, it’ll be difficult to win back customers from your rivals.”

It’s understandable why Apple is such a sought-after client. The Mac maker is set to become the world’s first trillion dollar company. The upcoming iPhone 8 – Apple’s tenth anniversary handset – is the most anticipated smartphone of the year, and it’s projected to break sales records. Any company that supplies the components needed to power Apple’s bread and butter will certainly reap the benefits of its popularity as well.

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