Apple's Termination of Supply Agreement Affects UK Factory

TapTechNews May 28, according to euronews, after Apple terminated a "lucrative supply agreement", the factory of the materials network and laser technology company Coherent located in County Durham in northern England is facing the outcome of being sold or closed. This factory is said to be "one of the largest microchip factories in the UK".

TapTechNews learned that this factory mainly produces components in the FaceID recognition system for Apple's iPhone, but "due to a series of changes即将到来 to the next-generation iPhone", Apple has notified the factory a year ago that it will stop the order, and since then the factory has laid off more than 100 employees. The remaining 257 employees still remain in the factory to complete the remaining contracts, and currently the relevant inventory contracts are close to completion.

In a statement, the factory said: "Regrettably, we have stopped the supply to the main customer at the end of fiscal year 2023. There are questions about the company's continued viability. We are conducting a series of strategic reviews with the Coherent company. If necessary, this factory will be closed or sold."

Losing Apple's contract usually has disastrous consequences for suppliers. For example, in 2017, Apple said it no longer plans to use the graphics chip design of the British semiconductor company Imagination Technologies, resulting in a 50% reduction in the market value of Imagination Technologies and eventually being sold.