Highlights

• LG Display partners with Novatek for iPhone 16 OLED panel chips.
• Slimmer bezels challenge production yield rates for iPhone 16 screens.
• Border Reduction Structure technology rumoured for all iPhone 16 models.
• Collaboration aims to ensure consistent supply and quality for Apple.

In a move to bolster its production capabilities, LG Display is revamping its supply chain for OLED panels destined for Apple’s upcoming iPhone 16 lineup.

According to reports from South Korean media, the display manufacturing giant is onboarding Taiwanese company Novatek as a new supplier of critical display driver chips.

LG and Samsung Vying to Supply iPhone Screens

This supply chain shuffle comes as both LG Display and its rival Samsung Display grapple with challenges in manufacturing the next-generation iPhone panels.

The root cause appears to be Apple’s design decision to outfit the iPhone 16 models with significantly slimmer bezels compared to previous iterations.

By bringing Novatek into the fold alongside its existing supplier LX Semicon, LG Display aims to diversify its sources for display driver integration (DDI) chips.

These specialized components play a crucial role in translating digital image data from a device’s graphics processor into signals that can be displayed on the screen.

Any potential supply hiccups or production issues faced by one supplier can be offset by the other, ensuring a smoother manufacturing process.

According to industry insiders, both LG Display and Samsung Display have encountered challenges in achieving desirable yield rates for the iPhone 16’s OLED panels.

The reason for this is Apple’s pursuit of an ultra-thin bezel design which has reportedly necessitated the adoption of a new technology called Border Reduction Structure (BRS).

New Display Technology Across iPhone 16 Series

While Apple typically reserves cutting-edge display advancements for its Pro iPhone models, rumors suggest that the BRS technology could be implemented across all four iPhone 16 variants this year.

However, conflicting reports indicate that only the Pro models may feature larger displays with slimmer bezels, while the regular iPhone 16 and iPhone 16 Plus may retain their current display dimensions.

In any case, with the addition of Novatek, LG Display hopes to overcome production hurdles, potentially gain cost advantages, and ensure a steady supply of high-quality OLED panels for Apple’s next-generation iPhones.

FAQs

What changes is LG Display making for the iPhone 16 OLED panels?

LG Display is incorporating Taiwanese company Novatek as a new supplier for display driver chips, essential for the production of OLED panels for the upcoming iPhone 16.

This strategic move aims to diversify chip sources and address production challenges linked to Apple’s design specifications for slimmer bezels.

Why are slimmer bezels significant for iPhone 16 production?

Slimmer bezels on the iPhone 16 require advanced manufacturing techniques and have led to challenges in achieving the desired yield rates for OLED panels.

These design choices necessitate the use of a Border Reduction Structure technology, pushing the boundaries of current display production capabilities.

Will all iPhone 16 models feature the new Border Reduction Structure technology?

Rumours suggest that the Border Reduction Structure technology could be a feature across all iPhone 16 models, marking a departure from Apple’s usual strategy of limiting display innovations to its Pro variants.

However, there is some speculation that only the Pro models might receive this update, leaving the standard models with their existing display dimensions.

How does partnering with Novatek benefit LG Display and Apple?

By partnering with Novatek, LG Display can mitigate risks associated with chip supply bottlenecks and improve its production efficiency for the iPhone 16’s OLED panels.

This collaboration not only ensures a more reliable supply chain but also potentially offers cost advantages, contributing to the overall quality and availability of Apple’s next-generation iPhones.

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