iPhone display supplier to be investigated by the US Department of Defense

The dark clouds forming over the Chinese manufacturer BOE are getting thicker and thicker. After the rumor that Apple might cut ties with the company due to issues with iPhone 17 displays cracking and the potential ban from the US International Trade Commission (ITC), now there's another serious situation developing.

According to Reuters, the US Defense Department might initiate an investigation into BOE following a request from the US House of Representatives Armed Services Committee. This investigation is part of an amendment to the $852 billion US defense budget currently under review.

The reason for the amendment is that the US House of Representatives Armed Services Committee thinks that BOE might be working for China's military.

"The People's Republic of China is subsidizing production of small display technology with military applications that subverts normal market competition and dominates global markets," says an entry in the committee's full list of amendments. "These Chinese government subsidies risk secure supply chains of critical military technology needed in the United States military."

The Secretary of Defense has until February 01, 2026, to provide information on whether BOE or its partner companies should be identified as Chinese military companies or military-civil contributors.

The next step in the administrative ladder is for the defense bill to be passed by the Senate. This should happen no later than September 30, 2025, the end of the fiscal year, when the budget must be approved by President Trump.

Is BOE facing a ban similar to Huawei's?

Not exactly. So, what does this all mean? Even if the defense bill is passed with the aforementioned amendment, and BOE is added to the list as a Chinese military supplier, the effect might not come for a couple of years.

Speaking of the effect, the most immediate impact would be that BOE could be blocked from supplying the US military. Being on the list doesn't block the company from doing business with commercial, non-military entities in the US, so iPhone displays could still be supplied by BOE.

BOE is ramping up production

Meanwhile, despite all the potential troubles, BOE seems to be expanding its production capacity, especially when it comes to manufacturing display panels for iPhones.

A new report from UBI Research dubbed the China Display Trend Report claims that BOE has managed to build an annual production capacity for 100 million OLED panels for iPhones. The company has cut the assembly time for one panel to 5.5 seconds, and has 11 lines for mass production capable of outputting 350,000 display panels per month.

Back in 2022, BOE was found manipulating Apple's display specifications. Understandably, this prompted Apple to cut orders. Currently, BOE exports to Apple are expected to surpass 24 million panels in the second half of the year. The overall number of panels for the year is expected to land at 45 million.

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