“China’s campaign to become a global power in advanced manufacturing is playing out at a high-tech factory in the Sichuan province, where engineers are aiming to supply display screens for Apple Inc.’s top-tier iPhones,” Yoko Kubota reports for The Wall Street Journal. “BOE Technology Group Co. plants already make display screens for Apple’s iPads and MacBook computers, and the company is also the world’s top producer of large liquid crystal screens. Now it is seeking to supply Apple with advanced organic light-emitting diode, or OLED, smartphone screens, according to people familiar with the plans.”

“BOE, hardly a household name in the U.S., has advanced quickly in the display industry. It became the No. 1 supplier of large LCD screens last year, up from No. 5 in 2014, according to IHS Markit,” Kubota reports. “It is the only Chinese display company that supplies Apple, which is notoriously finicky in its demands for top-quality components.”

“Buying display screens from BOE, which is controlled by the Beijing city government and whose biggest shareholders are state-linked companies, could help Apple stay in China’s good graces—as long as BOE can meet Apple’s high bar for quality,” Kubota reports. “‘It would be seen favorably by Chinese policymakers if Apple puts a stamp of good quality for China’s own technology of suppliers,’ said Dan Wang, a technology analyst at Gavekal Dragonomics.”

Read more in the full article here.

MacDailyNews Take: Anything that diversifies suppliers helping keep component prices down and innovation up along with making Apple even more valuable to China is obviously a smart tack to take.