US suspects: Apple supplier BOE could be a Chinese military company
A new US defence bill includes an amendment that suggests the Department of Defence examine the possibility of including BOE Technology Group - one of Apple's display suppliers - on a list of companies with alleged links to the Chinese military industry.
Here's What We Know
BOE is already featured in a letter from a Congressional committee alleging that the firm was founded as a defence equipment supplier and receives large government subsidies. Experts warn: the US dependence on such companies creates vulnerabilities in the military and commercial supply chain.
If BOE is classified as a Chinese military supplier by the US Department of Defence, it will be placed on an official blacklist. This would not mean a ban on trade with Apple, but would limit BOE's access to the US military supply chain well into the future years.
Apple currently continues to work with BOE, but potential restrictive measures could force the company to increase Samsung and LG's share of display supply or accelerate supply chain diversification.
Context
BOE is already facing an International Trade Commission (ITC) investigation for allegedly stealing Samsung's trade secrets for OLED panel production. A preliminary ban on imports of BOE products into the US could take effect by November 2025
Source: Reuters
