A few days back, Silicon Works reportedly joined the party of Samsung for supplying DDIs and Touch IDs. And now, it looks like one more LGs key component supplier will be a part of the Korean tech giant’s camp as LG Innotek might be shipping CoF for Galaxy A series smartphones.
What is CoF?
CoF stands for chip-on-film which is actually an IC (Integrated circuit) packaging technology that connects a display panel glass substrate and a flexible circuit board with each other (FPCB).
Furthermore, it utilizes flexible printed circuit film as the medium for packaging IC chips. The bonding is performed on the gold bumps on the chip and the inner lead on the circuit film by use of heat and pressure.
Why LG’s various component suppliers are joining Samsung?
From the latest reports, we found that LG Innotek is part of LG Corporation which usually works as a conglomerate mobile arm, but as we came to know that LG is shutting down its mobile business worldwide. So, we can understand why supply partners including Innotek moving towards big firms like Samsung, for executing their own business.
In addition, COVID-19 also made component suppliers for joining Samsung as due to pandemic LG didn’t earn enough profits. However, many previous reports had already mentioned that this pandemic situation significantly affects the overall business of the company which led not to provide enough returns to the OEMs which are working with LG for quite many years. So, this also one of the reasons for component firms to join Samsung.
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