For Apple Car Project

Apple is reportedly in talks with a Korean company over the supply of flip chip-ball grid array (FC-BGA) substrates for its Apply Car.

Apple is reportedly discussing the supply of flip chip-ball grid array (FC-BGA) substrates, which are to be used for its Apply Car, with a Korean company. FC-BGA substrates are a high value-added printed circuit board that connects semiconductor chips to the main substrate. They are one of the key components needed to build autonomous vehicles.

The Korean company exchanged FC-BGA samples with Apple Car development staff members and passed an initial quality test.

The reason why Apple rushed to select a substrate manufacturer ahead of makers of other parts is a shortage of substrates. Currently, FC-BGA substrates are in a serious supply and demand imbalance due to manufacturers’ failure to forecast demand and explosive demand for information technology (IT) devices. Some predict a shortage in FC-BGA supply by 2026. Apple's strategy is to secure key parts for self-driving cars in advance. Apple is expected to unveil the Apple Car as early as 2024.

The global substrate market is expected to face a change. Japanese and Taiwanese companies began to produce FC-BGA substrates ahead of Korean companies. They have bigger market shares in the FC-BGA substrate market than Korean companies.

However, Apple reportedly gave the Korean company a high score for its rapid technology development and quick delivery response. Apple judged that the Korean company will be able to quickly gain global competitiveness in the FC-BGA substrate field based on its competitiveness in other high value-added substrates. Apple is reportedly discussing an equity investment in the Korean company.

The specifications of the Apple Car have not yet been finalized. Apple will complete a supply chain management system for the Apple Car by the end of 2022 and start developing a prototype.

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