Become a Member · About 24/7
Already a member? Login
 

Further Global Supply Chain Issues Interrupt iPhone 8 Production

Supply chain issues and industry-wide critical component shortages will have a profound impact on Apple’s production of the iPhone 7s, iPhone 7s Plus, and iPhone 8, several new reports seem to indicate. By Mike Peterson




An incident reported yesterday at a memory chip foundry in Taiwan is said to have caused supply and production issues.

The Micron Technology-owned plant is reported to have scrapped about half of its supply of DRAM chips due to nitrogen mishandling, according to DigiTimes.

Additionally, while Micron denied that the incident has affected its manufacturing lines, DigiTimes added that the incident did temporarily halt production.

In a statement to Reuters, Micron said that the incident was minor.

But research firm TrendForce estimates that the accident has affected at least 5.5 percent of the entire global DRAM production capacity for July.

The incident is sure to aggravate the already strained supply of the critical component, used in everything from smartphones to the Nintendo Switch.

The affected plant is said to have produced DRAM chips for Apple in the past, and additionally, Apple historically puts seasonal strain on global DRAM supply when it starts mass production of its iPhone handsets.

Indeed, Apple is already placing intense pressure on the Far East supply chain as a whole. DigiTimes reported in March that Apple’s demand is forcing other manufacturers to scramble to secure critical components for their own devices - including Nintendo, which is facing supply shortages some attribute to Apple.

Download: 2017 Top Ten Trends in Modern Demand-Driven Manufacturing

Last month, Reuters also reported that firms are scrambling to place memory chip orders before stock dries up completely.

Among the tight supplies is a shortage of NAND flash memory chips, due to the fact that Apple suppliers SK Hynix and Toshiba have each fallen short of expected yield rates - in some cases by as much as 30 percent.

This has forced Apple to turn to Samsung for NAND chips for its 2017 iPhones, as the Korean-based giant has relatively stable yield rates and is ramping up its output of the critical component, DigiTimes reported.

Notably, this is all occurring while Android makers are also gearing up to introduce their own flagship devices this year. Not that the industry didn’t see it coming.

In April, renowned KGI Securities analyst Ming-Chi Kuo predicted that this year’s premium iPhone 8 would face “severe supply shortages” after its launch this fall. In a “worst case scenario,” Kuo believes iPhone shipments could decrease by 15 to 20 percent overall.

Source: iDrop News

Related: Apple Supplier Foxconn Considering Wisconsin Manufacturing Plant

Related White Papers & Guides

Download the Paper

E2E Supply Chain Visibility Technology is Here
This whitepaper details the link between end-to-end supply chain visibility and modern Demand-Driven Manufacturing enterprises, and how manufacturers are gaining real power through liberating their data and transforming it into performance improving information. Download Now!


Download the Paper

Next Generation of Planning & Scheduling Solutions
This white paper explores the ways manufacturing has changed, from the goals of manufacturers to the systems they rely on, discover how the software market is addressing the changing manufacturing sector. Download Now!


Download the Paper

Manufacturing Metrics that Drive Action
As more manufacturers evolve toward a demand-driven (or customer centric) method of manufacturing, the metrics that measure their success change. Download Now!


Download the Guide

Demand-Driven Manufacturing Metrics
Operational metrics that drive action in Demand-Driven Manufacturing environments. Learn more about the Metrics for Action by downloading the Guide. Download Now!


Download the Paper

Why Become More Demand-Driven?
In this paper, we will examine the nuts and bolts of “common” manufacturing environments and look at how software solutions help harmonize these processes using improved data, visibility and demand-driven practices. Download Now!




Comments
Be the first to post a comment.
You must be logged in to post a comment. Login.







Supply Chain Logo
Supply Chain 24/7 is the ul­ti­mate online bus­i­ness re­source for Trans­por­ta­tion, Dis­trib­u­tion, Log­istics and Supply Chain pro­fes­sionals.
About Us
Contact Us
Advertise
Privacy Policy
Newsletters
RSS


Follow Us


©2017 SupplyChain247.com is owned and produced by Peerless Media, LLC., a Division of EH Publishing, Inc. All rights reserved.