The US has now set its sights on Apple!
In order to produce affordable iPhones, Apple has been sourcing screens from the Chinese company BOE. It was even stated that OLED screens for iPhone SE 4 would be produced by BOE. However, the US has now set its sights on BOE.
Apple may not be able to buy screens from BOE
Apple’s supply chain could be disrupted as the US government puts a Chinese display supplier under scrutiny over national security concerns. BOE, which makes LCD and OLED panels for iPhones, is in the crosshairs of the US Congress. Accordingly, as a Chinese company, it could be blacklisted.
BOE has previously struggled to secure significant orders from Apple due to quality control issues. However, it had developed small orders in the past and reached the level of producing OLED for iPhone SE 4. The new decision by Congress jeopardizes the company’s partnership.
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In a letter to the Department of Defense, some members of Congress expressed concerns about China providing subsidies to display manufacturers such as BOE and Tianma Microelectronics. According to the letter, these subsidies weaken competitors and increase China’s dominance in the industry.
The letter also noted that the BOE was initially established to supply the Chinese military and continues to support the military through contracts with other defense suppliers. In this context, BOE can be included in the status of China’s military companies.
A ban against BOE could jeopardize the iPhone SE 4 and other iPhone models. Blacklist sanctions could disrupt the import of BOE-bought iPhones into the US. Of course, it should not be forgotten that Apple receives its display supply mainly from Samsung Display and LG Display.
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