Chinese display manufacturer: US Congress could stop deliveries to Apple
BOE is currently building screens for Apple for cheaper iPhones. If American politicians have their way, not for long. They fear dependencies.
iPhone with broken glass: end for BOE displays?
(Image: Orapruek / Shutterstock)
The Chinese screen specialist BOE Technology could have difficulties selling its products to US companies such as Apple in the future. A committee of the US Congress has written a letter to the US Department of Defense requesting that Chinese manufacturers of LCD and OLED screen technology be placed on a "blacklist". In addition to BOE, the company Tianma Microelectronics is also named.
Demand for blocking
The letter from the Chairman of the Select Committee on the Chinese Communist Party, John Moolenaar, states that the technology has a "critical role in our own weapons systems" and that the use of Chinese manufacturers could pose a "supply chain risk to our military". In addition, the companies have "deep contacts" with the Chinese People's Liberation Army. BOE and Tianma had already acquired "large shares of the global screen market" thanks to subsidies from the Chinese government. BOE itself was originally founded as a subcontractor for China's military sector.
Apple itself currently uses BOE for lower-cost smartphone products, but has repeatedly had technical difficulties integrating the company into its supply chain. In addition, the manufacturer had made unapproved design changes to Apple orders, to which Apple responded with a temporary suspension. Most recently, it was reported that BOE could build the OLED screens for an upcoming iPhone SE 4.
Sanctions could follow
A ban by the Pentagon ("DoD 1260h Blacklist") could have direct consequences for BOE customers. It often also leads to direct sanctions, restricts trade routes and can even result in penalties for customers if they continue to do business. However, Moolenaar's letter is only the first step in such proceedings. The US Department of Defense has not yet responded. The letter was sent directly to Secretary of Defense Lloyd Austin.
Apple currently primarily uses Samsung Display and LG Display for its display supply. Both companies come from South Korea. With BOE, a third supplier should be established. LCDs are also supplied by Japan Display (JDI) and Sharp from Japan, but these are currently only used in the old iPhone SE 3.
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