According to a new supply chain report today, Taiwan-based flexible (FPCB) makers in the iPhone supply chain are likely to be forced to lower their prices in order to fend off competition from Japan-based rivals for securing more orders from Apple, according to industry sources.

Buoyed by increasing production capacity at its plant in Malaysia, Japan-based PCB maker Ibiden has geared its efforts to solicit more orders from Apple, a move which may affect orders for Taiwan-based PCB suppliers including Unimicron Technology, Unitech Printed Circuit Board and Compeq Manufacturing, said the sources.

In addition to Taiwan- and Japan-based suppliers, Apple currently also purchases any layer HDI boards for iPhone devices from Austria-based AT&S and US-based TTM, the sources noted.

With regards to FPCB, Japan-based Nippon Mektron has lowered its quotes recently, competing iPhone orders with Taiwan-based Zhen Ding Technology Holding and Flexium Interconnect, revealed the sources.

The increasing price competition may affect the profitability of Taiwan's FPCB suppliers, commented the sources.

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