Leading Beneficiary of SDC’s Crease

$苹果(AAPL.US)

SDC‘s crease-free display solution for foldable iPhone: Fine M-Tec the leading winner. My latest industry survey indicates that Apple is expected to adopt SDC’s (Samsung Display) crease-free display solution—rather than its own design—to ensure stable mass production of the foldable iPhone in 2H26. This decision will benefit suppliers closely aligned with SDC, with Fine M-Tec, a supplier of display metal plates (also referred to as internal hinges), emerging as the leading beneficiary.Display metal plate as key design element for crease-free display. The primary cause of creasing in foldable phone displays is stress concentration at the fold points during repeated bending, which leads to material fatigue and permanent deformation. A metal plate helps distribute and control bending stress, preventing the display material from exceeding its elastic limit and thereby minimizing the likelihood of creases. The metal plate must be highly integrated with the display design. Therefore, SDC’s crease-free solution for Apple includes a metal plate designed and manufactured by Fine M-Tec.Fine M-Tec to expand Vietnam production capacity for Apple, with strong momentum expected in 2026. Fine M-Tec is expected to begin shipping display metal plates for the foldable iPhone in 1Q26, with unit prices $30-35. Shipments are projected to reach 13–15 million units in 2026, exceeding final product assembly volumes due to yield losses and repair stock requirements. Leveraging its close partnership with SDC, Fine M-Tec is set to become the primary supplier, with an estimated 80% supply share or more.Higher specs and pricing for foldable iPhone display metal plates: a tailwind for Fine M-Tec‘s profits and market share. SDC currently uses etching in its metal plate manufacturing process. To meet Apple’s stricter crease-free display requirements, laser drilling will be introduced to create microstructures that better guide stress distribution and enhance crease resistance. The adoption of laser drilling in foldable iPhone display metal plates supports higher ASPs ($30-35 vs. ~$20 for etching), while the elevated technical barriers further reinforce Fine M-Tec’s competitive position and market share.Samsung foldable phones and shipment recovery drive Fine M-Tec’s near-term business momentum. Samsung’s latest foldable models—Z Fold 7 and Z Flip 7—are projected to ship around 7 million units in 2025, marking roughly significant 40% YoY growth over 2024’s models. Fine M-Tec serves as the primary supplier of display metal plates for Samsung foldable phones and stands to benefit significantly from the rebound in Samsung’s foldable shipments.