Apple's Upcoming iPhone 15 to Feature 28nm OLED Driver Chip, Potentially Causing Component Supply Shortages

According to supply chain insiders, the upcoming iPhone 15 will feature a 28nm OLED driver chip, which could lead to a shortage of available foundry capacity. The shift from the 40nm HV process to the 28nm HV process for the OLED driver chip technology is expected to significantly reduce power consumption and improve battery life.

Currently, the primary suppliers of Apple's OLED driver chips are LX Semicon and Samsung System LSI, with Samsung Electronics and UMC serving as their main foundry partners, and TSMC, UMC, and GlobalFoundries producing LX Semicon's driver chips. Following the upgrade in the OLED driver chip process, both the chip design firms and foundry manufacturers involved in the production process could benefit. Additionally, there have been reports that Unimicron may enter Apple's OLED driver chip supply chain in 2024.

The upgrade to the 28nm HV process for the OLED driver chip technology could have two primary benefits. First, it could help to further reduce the power consumption of the OLED driver chip and improve the performance of the iPhone 15 series. Second, the foundry partners of LX Semicon and Samsung System LSI are migrating their OLED driver chip production from the 40nm HV process to the 28nm HV process, with the 40nm process being used for eFlash memory and other types of chips. As a result, their interest in fulfilling orders for the 40nm OLED DDI is low.

As Chinese and Taiwanese foundries reduce their 40nm HV OLED driver chip foundry capacity, the growing demand for 40nm OLED driver chip foundry capacity due to the increasing shipments of flexible OLED displays could lead to a shortage of available capacity. Moreover, the migration of Apple's OLED driver chip to the 28nm HV process could also result in a shortage of 28nm capacity. As a distributor of electronic components, it is essential to stay informed about such developments and proactively address any potential supply chain disruptions. By working closely with our supply chain partners, we can optimize our inventory levels and help our customers meet their evolving needs.