LG is a key supplier for Apple and now it has broadened its supply sources for DDI (display driver ICs) used in OLED panels. This move sees Taiwan’s Novatek joining LX Semicon, the current supplier, in providing chips for the iPhone 16 OLED panels.
Optimizing OLED panel production costs
LG Display decided to diversify its supply chain which aims to optimize the cost of OLED panel production. Here Novatek as a new supplier, of LG Display seeks to enhance its cost control mechanism and ensure a steady supply of DDIs for Apple devices.
While LG Display faces constraints in cost reduction due to limited production capacity compared to Samsung Display, it endeavors to mitigate this through strategic supplier partnerships. However, Samsung Display’s dominant position in the market affords it little incentive to diversify its supplier base.
Apple’s new OLED panels for the iPhone 16 help in border reduction structure that aimed at minimizing the bezel thickness. This design helps in the placement of more circuits on narrow surfaces.