In mid-December, Intel is set to unveil its latest Core Ultra processor, Meteor Lake. Global PC brands like Lenovo, Microsoft, DELL, HP, Acer, Asus, MSI, and Samsung are rolling out new products to capture the market. The end-users is enthusiastic, and channel feedback suggests increasing orders, marking a turning point in the PC industry,  according to CTEE.

As per the designs by PC brands, AI PCs are poised to offer AI and machine learning, capable of executing intelligent applications and tasks at the edge. This translates to a boost in user productivity and entertainment experiences, enhanced communication efficiency, and improved work quality. Furthermore, these PCs prioritize data and privacy protection.

Taiwanese partners have corresponding models entering the market, with analysts anticipating AI PCs to become the primary driver for replacement demand in the latter half of the next year. Shipment volumes are estimated to surpass 100 million units in the next two years, benefiting Taiwan’s supply chain, including PC brands Acer, Asus, MSI, and ODMs Quanta, Compal, and Inventec.

On the other hand, TSMC stands up as a major upstream player, with rising utilization rate of the 5nm and 6nm advanced processes contributed to the big orders from the Meteor Lake. TSMC is in charge of the NPU, specifically designed for AI tasks.

Intel highlights 3D Foveros as the key to advanced packaging in mixing and matching compute tiles. This aspect is managed by its advanced packaging fab in Malaysia, ensuring the most efficient energy distribution.

(Image: Intel)

According to a news report from IJIWEI, as the supply chain reveals, three major Chinese smartphone manufacturers, Huawei, Honor, and Transsion, are estimating an active shipment goal of 70-80 million units in 2024. This estimate accounts for approximately 5% in the global smartphone market. 

On the other hands, memory manufacturers are expected to continue pushing for price increases in 2024, as demand from smartphone customers becomes more proactive in the fourth quarter.

Reportedly, the supply chain estimates that due to U.S. restrictions, Huawei’s smartphone shipments are confined to the domestic Chinese market. It is projected that new device shipments for 2024 could see growth in the range of 20-30 million units. 

Honor, with a potential 300% increase in overseas smartphone shipments in the first three quarters of 2023, coupled with the success of the Magic V2 foldable smartphone, aims to continue the momentum with a growth projection of 20 million units in 2024.

Transsion estimates a growth of 30 million units in smartphone shipments in 2024, making it the only brand currently challenging double-digit growth.

Previously, analyst Ming-Chi Kuo from Tianfeng International Securities indicated in a report that Huawei is expected to launch a new flagship series, the P70, in the first half of 2024. Benefiting from upgraded camera specifications and the adoption of the in-house designed Kirin chip, the shipment volume of the models under Huawei’s P70 series is expected to see significant growth in 2024 compared to the 4–5 million units of the models under the P60 series in 2023.

If the current robust demand for replenishing smartphone inventory continues into the first half of 2024, the shipment volume of the P70 series is expected to show strong year-on-year growth of about 230%, reaching 13-15 million units for 2024. Even if the demand for inventory replenishment slows down in the first half of 2024, the shipment volume of the P70 series is still expected to experience significant year-on-year growth of 150%, reaching 10-12 million units for 2024.

(Photo credit: Huawei)

According to South Korean electronics industry media “The Elec,” insiders have revealed that, in the year-end organizational restructuring, Samsung Display has strengthened its existing team responsible for handling demand from Cupertino, where the corporate headquarters of Apple is located.

Reportedly, the focus was on enhancing its capability to respond to the potential release of foldable devices by Apple. This suggests that an Apple foldable device might make its debut in the coming year.

The report points out that both Samsung Display and its competitor LG Display are developing a 20.25-inch foldable display for Apple’s future products. Samsung Display’s organizational restructuring appears to be a strategic move to compete more effectively against other rivals, particularly LG Display, in an effort to secure orders for Apple’s foldable panels.

Apple is Samsung Display’s most significant customer for OLED panels, and Samsung Display is the exclusive supplier of foldable OLED panels for its parent company, Samsung Electronics. Samsung Display evidently aims to leverage the experience gained in producing foldable displays for Samsung devices to prepare for potential future orders for foldable iPhones and iPads from Apple.

However, according to the analysis released by TrendForce in the second half of this year, Apple’s development in the folding field still requires time. Apple’s foray into foldables has been tepid, to say the least.

Yet, Apple’s unwavering obsession with user experience could be the culprit. Furthermore, persistent challenges with foldable tech—think panel evenness and hinge design—might be holding them back.

But here’s the kicker: Achieving perfection with larger foldable panels is somewhat simpler than their smaller counterparts. Could this mean Apple might leapfrog right into medium-sized foldable products—like laptops or tablets? Only time will tell.

TrendForce’s insights reveal that by 2023, shipments of foldable smartphones could skyrocket to an impressive 18.3 million units, marking a 43% YoY surge. However, this only captures a slim 1.6% of the year’s total smartphone market.

Fast forward to 2024, and we’re looking at another leap—a 38% growth, translating to a hefty 25.2 million units and nudging the market share up to 2.2% Looking at the medium to long term, TrendForce believes the expansion of the foldable smartphone market is inevitable. By 2027, shipments could soar to a whopping 70 million units, seizing around 5% of the global smartphone market.

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• Foldable Smartphone Market Penetration Estimated at 1.6% in 2023, with Potential to Exceed 5% by 2027, Says TrendForce

(Photo credit: Apple)

According to a news report from Financial Times, Apple has reportedly informed its supply chain, including battery suppliers such as China’s Desay Corporation and Taiwan’s Simplo Technology, of its inclination to shift the battery supply for the iPhone 16 to India. Apple is encouraging suppliers to relocate existing production capacity to India to expand production scale in the region.

TrendForce believes that, given the critical nature of battery components in terms of user safety, any error in battery assembly is unacceptable. As Apple’s certainty about production yields in India remains unclear, this move carries certain risks.

Apple Expedites iPhone Assembly Business Transfer to India to Mitigate Geopolitical Risks

As the world’s most valuable company, Apple’s supply chain strategy has always been a key factor in its success. Amidst geopolitical tensions between the U.S. and China, Apple faces significant pressure from both the investment community and U.S. policymakers to diversify its supply chain, prompting an acceleration in the transfer of iPhone assembly operations.

In recent years, Apple has been shifting part of its iPhone assembly business from China to India to mitigate production risks.

The choice of India as a manufacturing destination is influenced not only by its large and untapped population but also by proactive subsidy policies implemented by the Indian government, aiming to position India as an attractive manufacturing and export hub for multinational companies.

Additionally, the growth potential of the iPhone in the Indian market adds to the appeal of relocating iPhone production to India. 

Increased Risks as Battery Component Production Shifts to India amid Uncertain Yield Rates

Analyzing the manufacturing distribution for Apple’s iPhone 15 series in 2023 reveals Foxconn’s predominant role, with only specific Plus models being produced by India’s Tata Group.

This strategic move, based on TrendForce’s insight, is inferred to be influenced by the Plus models’ lower sales performance in previous generations and their specific product positioning. Apple seems cautious about shifting production to India entirely until the production standards of Indian manufacturing facilities are confirmed, especially for models with comparatively lower demand.

In the ever-evolving landscape of smartphone components, such as core processors and camera modules, upgrades occur almost annually. However, the upgrade pace for smartphone batteries has been notably slower.

This delay is attributed to the critical importance of safety in battery components. Given the potential risks to user safety, even a minor error in battery components could lead to significant harm to a smartphone brand.

Considering this, the manufacturing distribution for Apple’s iPhone 15 series suggests that Apple might not be entirely confident in the production yield rates in India.

If the decision to shift the production of batteries, which requires a special emphasis on safety, to India is solely driven by the need to mitigate geopolitical uncertainties, it indeed poses a certain level of risk for Apple.

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• [Insights] Tata’s Challenge in Securing Large iPhobe Orders After Officially Acquiring Wistron’s India Factory

According to a news report from Economy Daily News, Taiwanese IC design company MediaTek is benefiting from a rebound of the smartphone market, with shipments of its Dimensity series 5G smartphone chips gaining momentum. Simultaneously, there is positive news of a potential surge in the demand for WiFi products next year.

MediaTek has secured major contracts for WiFi 7 with leading global tablet brands, Intel’s laptop platforms, and various prominent smartphone manufacturers, breaking Broadcom’s long-standing dominance in the WiFi chip market.

Industry sources suggest that MediaTek is expected to further expand its reach next year by securing orders from Chinese smartphone brands, Intel’s laptop platforms, and the primary WiFi 7 chip orders from the leading global tablet brand from the US.

With shipment momentum entering a quarterly ascending stage, MediaTek is poised to break the past trend of Broadcom’s long-term dominance in the WiFi chip market. Additionally, MediaTek is gaining ground on its competitor Qualcomm, positioning itself as one of the top three global suppliers in the WiFi chip market.

MediaTek has refrained from commenting on customer specifics and order status. However, market expectations are high for a significant boom in WiFi 7 opportunities next year, and MediaTek is anticipated to benefit from this surge.

According to industry analysis, WiFi 7 boasts faster transmission speeds and additional frequency bands. Its theoretical speed is 4.8 times faster than the preceding WiFi 6 standard and 13 times faster than WiFi 5. The industry widely anticipates WiFi 7 to become the mainstream network transmission standard next year.

In the current PC market scenario, major PC suppliers such as Intel and AMD are almost certain to extensively support WiFi 7 next year. In the smartphone market, there are reports that Apple and Samsung are expected to incorporate WiFi 7 specifications in their new models next year, further propelling the explosion of WiFi 7 opportunities in the coming year.

In the past, MediaTek made relatively slow progress in the WiFi market, but it accelerated its efforts upon entering the WiFi 6 era. With ambitions to outpace competitors in WiFi 7, MediaTek reportedly expanded its R&D team, deploying a thousand personnel to delve into the WiFi 7 market.

In early 2022, MediaTek took an early lead by launching its WiFi 7 product line, entering the ‘design-in’ phase with clients. In the second quarter of 2023, reports suggest MediaTek is gradually making inroads into the high-end router and enterprise-related applications. These recent developments indicate positive strides for the company.

Industry analysts have emphasized that WiFi has become an essential network feature in current terminal devices. However, due to the need for integration supporting multiple frequency band specifications in network chips like WiFi and Bluetooth, the crucial point in verifying product usability lies in complying with frequency bands specified by various countries.

Since different countries use different frequency bands, a significant amount of manpower is required in the testing and verification stages. The development challenges associated with these chips are second only to modem chips.

Even Apple has reportedly delayed its in-house WiFi chip development due to a shortage of manpower. Instead, Apple has shifted its focus to procuring WiFi chips from other IC design companies. This opens up opportunities for Broadcom, Qualcomm, and MediaTek to secure significant orders for WiFi chips in Apple devices like iPhones, iPads, and MacBooks.

Reportedly, an insider has indicated that MediaTek’s WiFi 7 chips will be produced using TSMC’s 6nm process. It is anticipated that the wafer input for these chips will ramp up in the first half of 2024 as MediaTek will be gearing up to seize new opportunities in the latter half of that year when consumer devices will have widely adopted WiFi 7.

(Photo credit: MediaTek)