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Samsung to sell business that made a specific iPhone component

By Wei Zhang
1 min read
samsung facility
samsung facility
In this article (5)
Apple does depend on Samsung to supply it with certain iPhone components although Apple has made a point of trying to reduce its reliance on its rival over the last few years. But there is a business that Samsung plans on exiting over the next year forcing Apple to change the mix of suppliers for rigid-flexible printed circuit boards (RFPCB). According to TheElec, Samsung will provide Apple with only 30% of the RFPCB that will be used on this year’s iPhone 13 series.
As a result of Samsung’s decision to stop production of the component in November, South Korea’s BH will deliver approximately 55% of the RFPCB ordered by Apple with Youngpoong Electronics expected to chip in roughly 15% of the total. In 2022, BH could be called on to supply Apple with 70% of its RFPCB needs with the remaining 30% coming from Youngpoong Electronics.
The component is used to connect the main circuit board with the phone’s OLED panel. Being rigid and flexible might sound like a contradiction, but the combination helps companies like Apple more easily design their products. Compared to FPCB, RFPCB sends electric signals faster but is more expensive.
Samsung’s RFPCB production facilities are located in Vietnam and the company could start the sales process in August. Samsung is apparently planning to sell the unit in two parts. The business has been losing 50 billion won ($44.2 million USD) a year. Samsung originally planned on disposing of the division last year but decided to keep production going for another year.

Questions & Answers

Q.

Which specific component is Samsung planning to stop producing?

A.

Samsung plans to exit the business that manufactures rigid-flexible printed circuit boards (RFPCB). This component connects the main circuit board with the phone’s OLED panel and sends electric signals faster than FPCB.

Q.

What proportion of RFPCB for the iPhone 13 series was Samsung expected to supply?

A.

Samsung was set to provide 30% of the RFPCB for this year's iPhone 13 series. South Korea’s BH will now deliver approximately 55%, with Youngpoong Electronics contributing roughly 15%.

Q.

Why is Samsung deciding to sell this part of its business?

A.

Samsung is exiting the RFPCB business because it has been unprofitable. The unit has been losing 50 billion won ($44.2 million USD) annually, leading to the decision to sell it off.

Q.

Where are Samsung’s RFPCB production facilities located?

A.

Samsung's facilities for RFPCB production are situated in Vietnam. The company intends to commence the sales process for this unit in August, potentially selling it in two separate parts.

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