BOE Banned from US for 14 Years in Samsung Trade Secrets Scandal

Apple, like many other successful companies, diversifies its suppliers. This means that instead of getting their components from a single supplier, Apple diversifies to ensure that if the supplier runs into issues, they’ve got backup. Now, BOE is one of Apple’s display suppliers, but the company has now been banned from the US.

BOE banned in US over alleged theft

According to the Korean publication Chosun, it looks like BOE has been banned from the US. The ITC has issued a preliminary ruling that banned a total of eight companies from importing into the US. This includes BOE and seven of its subsidiaries. The reason for the ban has to do with the theft of trade secrets from Samsung Display.

The ITC says, “Despite Samsung Display’s excellent security measures, BOE obtained and used Samsung Display’s trade secrets through misappropriation.” It also says that it “caused substantial harm and serious threats to Samsung Display.” This has resulted in an import ban of 14 years and 8 months, effectively locking them out of the US market.

This has implications for Apple, too. Like we said, Apple sources its displays from BOE along with Samsung. If BOE’s displays are prevented from being imported stateside, it means that Apple needs to ensure the iPhones it imports use displays made by Samsung or another company.

This will also benefit the likes of Samsung and LG, both of whom now have one less competitor in the US market.

Apple’s other issues

That being said, this ruling might also benefit Apple. Now, we said that Apple could be affected due to the import ban. However, there have been reports suggesting that Apple could cut ties with BOE. Apple and BOE have worked together for a while. But recent reports suggest that BOE’s yield hasn’t been up to Apple’s standards.

This has to do with the upcoming displays for the iPhone 17, where displays made by BOE have reportedly been cracking. Plus, there is a pending investigation by the US Department of Defense. So, this ITC ban could give Apple an excuse to cut ties with the Chinese company for good.

Plus, let’s not forget Trump’s tariffs. The Trump administration has imposed a 30% import tax on goods from China. If Apple sources from elsewhere, it could lower their costs as well.