OLED display chip shortage may impact iPhone production

As Samsung manufactured the OLED display used in iPhone 12 and Apple Watch models at the Texas facility, the plant's closure could impact Apple

San Francisco: Apple iPhone production may face disruptions due to the impact on Samsung’s production of OLED displays as a result of a global chip shortage.

According to Nikkei Asia, Samsung was forced to shut down its chip fabrication plant in Texas due to large winter storms. The plant is responsible for 5 per cent of the global supply of chips for smartphones and personal computers, and its closure has caused widespread global shortage.

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As Samsung manufactured the OLED display used in iPhone 12 and Apple Watch models at the Texas facility, the plant’s closure could impact Apple.

The facility also produces chips for organic light-emitting diode panels and for image sensors. The supply crunch hitting Qualcomm will affect a wide range of smartphone makers that rely on the company for key components.

Previously it was expected that Apple will not face any production hiccups due to the current chip shortage because TSMC designs and produces A-series chips used in the new iPhone 12 series, unlike Android smartphones companies that rely on Qualcomm, Samsung, and others for processors.