The rise of Apple suppliers in China has sparked global alarm

Spark Global Limited reports:

Spark Global Limited reports:

Apple is looking for more suppliers in China to produce its latest iPhone. Apple plans to produce 90 million to 95 million new iphones by January 2022.

According to Japanese media reports, Lishun Precision Industries has also entered the iPhone production supply chain and will produce as much as 3 percent of the upcoming new iPhone series (tentatively called iPhone13) to compete with Foxconn and Pegatron.

Hitachi Precision plans to start production of a new high-end iPhone model, the iPhone13Pro, in August, Nikkei Asia reported, citing sources familiar with the matter.

In general, apple’s supply chain novice usually starts from making the old models, and had made precision never produce all of its iPhone, the plan for the company will be a big breakthrough, vertical – precision as early as last year camera module manufacturer Cowell bought South Korea and Taiwan manufacturers of metal frame Keith teck two companies, The two companies will also supply key components for this year’s new iPhone, along with Lichun Precision.

Therefore, Lixun Precision is also known as a dark horse in this year’s suppliers.

The company is expected to surpass Pegatron in 2023 to become the second largest iPhone manufacturer after Foxconn.

According to another iPhone supplier executive, while rival Ritzen Will only produce a small number of iphones this time, it has a chance to become a major iPhone supplier if it lets its guard down.

Apple has one of the most complex consumer electronics supply chains in the world, producing about 200 million iphones, 20 million macBooks and tens of millions of AirPods each year.

EricTseng, chief analyst at research firm Isaiah, said ritzen’s rise is likely to be used as a bargaining chip between apple and foxconn. And in the future, Apple needs to diversify procurement and management costs, which will provide more and better opportunities for Chinese suppliers to expand their share of the supply chain.

Apple’s manufacturing standards are notoriously high, which means that any company in this supply chain can claim to be the best in their field.

With the rise of Apple suppliers in China, orders from suppliers in other countries have shrunk and declined.

China is increasingly frustrated by the ongoing U.S. crackdown on Chinese chipmakers and a series of trade restrictions aimed at blocking Chinese access to U.S. technology.

According to Japanese media, Hunan Lens Technology will supply metal enclosures for the first time this year. Previously, the company only supplied glass for the iPhone’s back and back panels. The shift comes after the company acquired a rival’s metal frame and casing factory in China last year, enabling it to take on the task of supplying metal casings.

Meanwhile, Sainty Optical Technology, China’s largest maker of smartphone camera lenses, entered the iPhone supply chain for the first time this year. According to the sources, the company will supply the rear camera lens, but its share will be small.

Sainty Optical Technology, based in Zhejiang Province, has long been a major supplier to China’s Xiaomi, Huawei, Oppo and Vivo, and is a major competitor to Taiwan province’s Leading maker of high-end smartphone lenses, Laroponics. LPV is also a long-time supplier of the iPhone.

Beijing Boe began providing OLED displays for older iphones last year. This year, it will begin offering premium oled displays for the iPhone13 series in the next quarter.

Boe is seen by China as the biggest challenge to OLED supplier Samsung, and Apple’s addition of BOE to its iPhone supply chain gives it a boost.

Several Other Chinese companies first appeared on Apple’s supplier list last year, including display maker Tianma Microelectronics, memory chip maker Zhaoyi Innovation Semiconductor and Anshi Semiconductor, a unit of Wentai Technology, China’s largest smartphone assembler.

Among them, Unshi Semiconductor, a wholly-owned subsidiary of Wentai Technology, has officially confirmed the acquisition of NWF, the largest chip factory in the UK.