Apple’s Suppliers Drop as Chip Crunch to Hit IPhone Production

(Bloomberg) -- Apple Inc.’s suppliers dropped Wednesday after Bloomberg reported the tech giant is likely to slash its iPhone 13 production target for 2021 due to chip shortages, citing people with knowledge of the matter.

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Japan Display Inc., which gets more than half of its revenue from Apple, fell as much as 5.6%, the most in over two months, while South Korean part maker LG Innotek Co. slumped as much as 6.2%. They joined U.S. suppliers from Broadcom Inc. and Texus Instruments Inc. to Skyworks Solutions Inc. and Cirrus Logic Inc., which fell in postmarket trading.

For a list of suppliers, click here.

Signs had already been emerging in recent company filings of the supply chain disruptions caused by the pandemic and intensified by the global energy crunch.

Apple’s acoustic parts maker AAC Technologies Holdings Inc. has dropped more than 10% in Hong Kong since Thursday close after a profit warning citing supply chain issues among other reasons. Hong Kong’s bourse was suspended Wednesday because of a typhoon.

Meanwhile, the world’s biggest chip packager, ASE Technology Holding Co. -- which gets about a third of its revenue from Apple -- halted production at a plant in China last month citing government restrictions on power usage.

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