Samsung Electro-Mechanics, an electronic parts affiliate of Samsung Group, is preparing to dive into the integrated circuit packaging industry, according to news reports on Monday.

Joining hands with Samsung Electronics, the electronic components firm will likely plan to win new supply contracts of chips for smartphone makers, including U.S.-based Apple.

Samsung Electro-Mechanics will transform Samsung Displays two liquid crystal display assembly lines in Cheonnan into ones for IC packaging.

The Samsung Group affiliate will package power management ICs, which control the flow of electricity, by utilizing Fan-out Wafer Level Package (FoWLP) technology

Such technology is said to have played a core role in Taiwanese chip maker TSMC winning a deal to supply its chips for Apple’s next flagship smartphone. It enables chip makers to pack multiple chips in one package, a technology often dubbed as system in package.

The workforces of Samsung Electronics system LSI — a division in charge of producing non-memory chips — and Samsung Electro-Mechanics will join the project to launch the IC packing business.

Following a series of tests, the IC packaging factories will go into full operation in the first half of next year.