According to South Korean media TheElec, Samsung Electro-Mechanics announced on October 15 that it would terminate its flexible printed circuit board (RFPCB) business. Previously, the company had been producing such products at its factory in Vietnam.
RFPCB flexible printed circuit boards (also known as flat cables) are mostly used to connect OLED panels to circuit boards, camera modules to motherboards. They are highly flexible and very thin, allowing signals to be smoothly transferred from the display control board to the display panel. Previously, Samsung Electro-Mechanics' RFPCB customers were mainly Apple and Samsung Electronics.
According to statistics, Apple's annual sales are about 300 billion won, and Chinese mobile phone manufacturers and Samsung Electronics have annual sales of 100 billion won. However, Samsung Electro-Mechanics loses about 50 billion won (about 272 million yuan) every year. The company said that after withdrawing from the RFPCB business, although sales will decline, overall profitability will improve. After that, the RFPCB flexible printed circuit board is expected to be sold to BH or Youngpoong Electronic, which currently supplies Apple and is expected to take over Apple's orders after acquiring this business.
▲ The picture is from Samsung Electro-Mechanics, the same below
Foreign media said that among the RFPCB flexible circuit boards for Apple's iPhone 13 series mobile phones, BH supplies 50%, Samsung Electro-Mechanics accounts for about 30%, and Youngpoong Electronic accounts for about 10%. Previously in 2020, Samsung and BH had similar supply ratios, but this year they reduced production.
Another company, Interflex, supplied Apple with RFPCB for the iPhone X OLED screen and touch layer as early as 2017, but its yield rate was low, which caused screen failures, so Apple eliminated this supplier.
IT Home learned that Samsung Electro-Mechanics CEO said in 2020 that the company will withdraw from the RFPCB and wireless communication module business because its profitability is hindered by fixed costs.
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