Apple's products fully switched to AMOLED, and the FPC factory in Viet Nam expanded its production capacity by 2 timesEditor: LucienRecently, Viet Nam DKT Vina plans to double its production capacity in Viet Nam, investing 1.437 trillion Viet Nam (about 413 million yuan) to build its fourth flexible printed circuit board FPC manufacturing plant in Vinh Phuc province in northern Viet Nam.
It is understood that the new factory is located in Khai Quang Industrial Park, Vinh Phuc Province, adjacent to the existing first, second and third factories. According to DK Tech's environmental impact assessment report submitted to the Ministry of Natural Resources and Environment of Viet Nam, the fourth plant covers an area of 13,857 square meters, while the first, second and third factories all cover an area of about 7,000 square meters, and the new plant is twice the size of the previous plant. The new plant is expected to be DKT Vina's largest plant in Viet Nam and is expected to start construction in March next year and start operations in April 2026. After completion, the annual production capacity of the four factories is expected to reach 168 million FPCs and 2.269 million in-vehicle wireless chargers.DKT Vina is an important FPC supplier to Samsung (Viet Nam and its overseas factories), and Samsung's orders once accounted for 90% of its total revenue. In 2011, DKT Vina followed Samsung Mobile to build a factory in Khai Quang Industrial Park, Vinh Phuc Province, Viet Nam, focusing on the manufacturing and processing of FPC circuit boards, and has more than 1,700 employees so far.Sales in 2023 increased by 30% year-on-year to US$210 million, of which about 30% of production is directly exported to China, Korea and India, and the rest is mainly supplied to foreign customers in Viet Nam, mainly Samsung. According to Li Xing, DKT mainly supplies FPC products for Samsung mobile phone AMOLED displays, although after 2023, Samsung has adjusted its procurement policy to reduce the procurement ratio of a single supplier to reduce dependence, DKT's orders from Samsung have decreased, but Samsung's flexible AMOLED display FPC supplier Korea BH Co., Ltd.'s factory BH VINA in Viet Nam purchases DKT products in large quantities to supply their customers. At the same time, DKT Vina has been renting a factory building in BH VINA to further develop products related to electric vehicles since February this year.Recently, supply chain companies in East Asia also said that Apple has decided to no longer equip LCD displays in the iPhones released from next year, and all will switch to AMOLED displays. Including the fourth-generation iPhone SE to be released next year, it will also adopt an iPhone 14-like exterior design, the screen is upgraded to an AMOLED small notch screen, Face ID unlock instead of Touch ID, and uses a USB-C port, operation buttons, Apple's self-developed 5G modem, A18 processor, and so on.The change of Apple's product strategy has also had an impact on the supply chain, for example, Sharp and JDI, which provide displays for Apple's mobile phones, will lose most of Apple's orders for LCD displays, and Apple will only purchase some additional orders and LCD displays for after-sales maintenance in the future. For Apple's AMOLED supply chain, it is good news, in addition to Samsung Display, LGD, BOE and other companies that provide panels, companies that provide FPC for these panels such as Korea BH Co., Ltd., DKT Vina, etc.Apple has also equipped the iPad with AMOLED display since this year, and increased the application of LTPO AMOLED display on iPhones, which has made the industry's high-end FPC suppliers began to tighten production capacity, in order to ensure delivery, these companies began to expand production, or send out part of the orders to peer OEMs.At present, Apple's iPad is also equipped with AMOLED display, and the LTPO AMOLED display on the iPhone, basically Samsung Display and LGD in Viet Nam factory module packaging, so most of the FPC companies of these two products, also basically serve the Viet Nam market, benefiting from the increase in Apple's orders, these FPC companies have also ushered in new growth.Under this big situation, DKT Vina, which has built FPC production capacity in Viet Nam, is undoubtedly the main beneficiary.
