According to a report by Guotai Haitong, Apple's first foldable display product is expected to launch in 2026. Apple aims to showcase extreme industrial design aesthetics featuring no creases, ultra-thin profiles, and high durability, with anticipated rapid annual growth in shipment volumes. Due to its high strength, corrosion resistance, and excellent surface texture, the usage of titanium and titanium alloys in foldable screens is projected to increase significantly.
From the perspective of titanium materials, Tiangong International (00826) has been focusing on high-end titanium alloy wire and is currently supplying several leading international consumer electronics companies while continuously expanding production capacity, positioning itself to benefit from rising orders for foldable phones.
The primary insights from Guotai Haitong include: 1. The titanium content in Apple's foldable phones is expected to increase, which will benefit the supply chain amid surging sales. 2. The design of the foldable screen phone is large when opened while pursuing an extremely thin profile, making bending and deformation of the body a concern. Thus, the mid-frame material must provide sufficient structural support without adding significant weight. The bending resistance of titanium alloy frames significantly outperforms aluminum alloy while achieving lightweight characteristics that better protect the display and internal components. Furthermore, the larger size of the mid-frame as compared to standard smartphones increases the value of titanium alloys. 3. The screen support plate located beneath the flexible OLED screen serves to support the display and ensure optimal touch experience while controlling the curvature during folding and unfolding to minimize the depth and visual impact of creases. To reduce the overall weight, the support plate in Apple's foldable phone is likely to use pure titanium solutions to balance weight, performance, and processing costs. 4. Other applications: Due to the superior ductility and corrosion resistance of titanium alloys, there is potential for future applications in foldable screen hinge covers and other components. With the maturation of 3D printing technology, the penetration of titanium alloys in consumer electronics and aerospace sectors is expected to rise.
The use of 3D-printed titanium alloys provides significant design freedom, allowing for the creation of complex hollow or integrated structures that CNC cannot achieve. Material utilization is nearly 100%. However, the efficiency is relatively low and costs are high, leading to gradual adoption in aerospace and medical fields, with increasing penetration into high-end consumer electronics.
Looking ahead, as 3D printing and other processing technologies mature, titanium alloys are expected to rapidly penetrate products like foldable phones, AR/VR headsets, and drones that demand lightweight and structural strength. Domestic companies are actively positioning themselves, and continued volume growth is expected. The titanium and titanium alloy industry chain consists of: upstream titanium ore preparation into sponge titanium; midstream processing of sponge titanium into ingots and titanium materials (plates, pipes, wires, etc.), and molding these into titanium alloy structural components; and downstream applications in chemicals, aerospace, consumer electronics, etc.
From the titanium materials segment, Tiangong International (00826) is focused on high-end titanium alloy wire and has been supplying various leading international consumer electronic firms while expanding its production capacity, thus benefiting from increased orders for foldable phones.
Investment Recommendations: The usage of titanium alloys in high-end consumer electronics represented by Apple's foldable phone is expected to increase continuously, while the penetration of titanium alloys across various fields is anticipated to grow alongside the maturation of 3D printing and similar technologies. Domestic companies are actively positioning themselves, thus sustained volume growth is expected.
Related stocks: Tiangong International (00826), Hon Hai Precision Industry Co., Ltd. (601138.SH), BYD Electronic (00285), and JieBang Technology (301326.SZ).
Risk Warning: Uncertainties related to U.S.-China trade frictions; potential delays in foldable phone release dates.