Apple dumps three Taiwanese suppliers

Taipei--Apple Inc. removed three Taiwanese companies, including leading flat panel maker AU Optronics Corp. (?? AUO), from a list of its biggest suppliers, but added U.S. semiconductor manufacturer Microchip Technology and two other companies, according to a report released by the company Monday.

Taiwan's leading plastic molding manufacturer Coxon Precise Industrial Co., Ltd. (????) and notebook hinge maker Jarllytec Co., Ltd. (????) were the other two local companies removed from the list as part of Apple's annual Supplier Responsibility Report.

Meanwhile, Japanese leading ceramic technology company, NGK Spark Plug Co., Ltd., and Eaton Corp. Plc, which was founded in the United States with corporate headquarters in Dublin, Ireland, were added to the list.

About 2 percent of the turnover of AUO, a supplier of liquid-crystal display panels for Apple's iPhones and iPads, came from Apple, according to a Bloomberg News report.

It has long been reported that Apple plans to switch to an organic light-emitting diode (OLED) display with at least one iPhone model in 2017, which is why AUO fell off the list of Apple's top 200 suppliers this year, according to the report.

A media report last year also said Apple wants to invest in AUO to develop OLED displays for the use of Apple devices in the future. There was another report that Apple has employed former AUO engineers to develop new technology for panel production.

However, 38 Taiwanese companies have been included in the supply chain, including Taiwan Semiconductor Manufacturing Co. (???), the world's largest contract chip maker, Hon Hai Precision Industry Co. (??), the world's largest contract electronics maker, and integrated circuit firm MediaTek Inc. (???).

The list also includes Taiwan's integrated circuit packaging and testing services firm Advanced Semiconductor Engineering Inc. (???), smartphone camera lens supplier Largan Precision Co. (???) and passive component manufacturer Yageo Corp. (??).

Source: Focus Taiwan News Channel