Another supplier is about to close because Apple 'turned its back'

The more than 30-year-old semiconductor wafer factory is now owned by materials, networking and laser technology company Coherent Corp. The factory's owner said that because Apple has stopped ordering components for the Face ID recognition system at the end of fiscal 2023, the factory's continued viability is in question.

Becoming an Apple supplier also poses no small challenges.

The factory is known to mainly produce components for the iPhone's Face ID recognition system, but as Apple is planning to completely switch to the Face ID system on the iPhone 16 series launched later this year, the demand for production has stopped. In fact, Apple informed the factory a year in advance that it planned to stop placing orders, which forced the factory to lay off more than 100 employees. Currently, the factory still employs 257 employees to complete the remaining contracts.

In 2021, Coherent announced an expansion of the aforementioned factory after winning a contract with Apple, but Apple's suspension of new orders had "catastrophic" consequences for the company.

The move also recalls what happened in 2017 when Apple decided not to use graphics chip designs from British semiconductor company Imagination Technologies, causing the company's market value to halve and forcing Imagination Technologies to 'sell itself' later.

That said, a company becoming part of Apple's supply chain is good news, but it poses unpredictable risks to its existence once Apple makes a major change.

Source: https://thanhnien.vn/them-mot-nha-cung-cap-sap-phai-dong-cua-vi-apple-quay-lung-185240529160811276.htm