"Samsung Electro-Mechanics has officially confirmed that it will end its RFPCB (Rigid-flex PCB) business. As one of its RFPCB customers, who will take over Apple's orders has attracted attention in the industry.

According to a Korean media theElec report, RFPCB is used to connect the OLED panel and the motherboard. Its soft and hard combination characteristics make it easier to design products and send electrical signals faster. Samsung Electro-Mechanics has been producing RFPCB at its Vietnam factory.

The main customers of Samsung Electro-Mechanics are Apple and Samsung Electronics. The annual sales of the two are about 300 billion won and 100 billion won, respectively. However, Samsung Electro-Mechanics has an annual loss of about 50 billion won. The company said that after exiting the RFPCB business, sales will decline, but it is expected that overall profitability will improve.

The report pointed out that it remains to be seen who will take over Apple's orders. BH and Yongfeng Electronics, which have already started to supply Apple, are likely to take orders from Samsung Electro-Mechanics.

As of 2020, Samsung Electro-Mechanics has provided Apple with the same number of products as BH. In addition, Interflex, a subsidiary of Yongfeng Electronics, may also re-enter Apple’s RFPCB supply chain, which provided Apple with RFPCB for iPhone X OLED panels and touch screen panels in 2017."