JPMorgan, via Barron’s, notes their “implications for supply chain names for Apple Watch and Apple Watch II in 2016.”
Samsung Electronics (005930.KR) for memory protection unit (MPU) at 28nm followed by Taiwan Semiconductor Manufacturing (2330.TW / TSM ) at 16nm FF (finfets) for Apple Watch II.
LG Display (034220.KR / LPL ) will be the sole vendor for p-OLED (organic light-emitting diode) followed by SDC (Samsung Display). TPK (3673.TW) will do touch panel followed by GIS (Foxconn subsidiary). Quanta Computer (2382.TW) will be the sole EMS provider followed by Foxconn. Advanced Semiconductor Engineering (2311.TW) is well positioned in the OSAT (outsourced assembly and testing) space.
Although there are a few Japanese tech names (NOK Corp ( 7240.JP ), Murata Manufacturing ( 6981.JP ), and Nidec Corp ( 6594.JP )), Apple Watch revenue contribution is very small.
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