According to a report from Taiwan’s Commercial Times, the iPhone 15 series is slated to make its debut in mid-September. The closure of Foxconn’s Zhengzhou factory at the end of 2022, which caused disruptions in the shipment of iPhone 14, prompted Apple to not only divert orders to Pegatron but also actively support the Chinese factory Luxshare to become the second-largest assembly plant. It is projected that Luxshare will account for 28% of the iPhone 15 shipments.

With Apple’s backing, Luxshare has swiftly emerged as a potential rival to Foxconn in the assembly sector. Issues such as supply instability and employee departures arising from the closed management of Foxconn’s Zhengzhou facility led Apple to promptly shift 4 million iPhone 14 orders to Pegatron and shift their focus onto Luxshare. This expansion extended beyond mainland China, reaching into India as well.

The Commercial Times report mentioned that for the iPhone 15 series, Foxconn is expected to retain its position as the largest assembly factory. Analysts estimate that Foxconn will be responsible for around 58% of the production output. However, Luxshare is set to take on the assembly of the two lower-tier models, as well as a segment of assembly for the highest-tier model. This accomplishment propels Luxshare to become the second-largest assembly factory for the iPhone 15, holding a share of 28%. Additionally, Pegatron is expected to hold a share of approximately 13%, positioning itself as the third-largest assembly factory.

According to research conducted by TrendForce, Luxshare’s manufacturing proportion for the iPhone 15 and iPhone 15 Plus this year is expected to reach 29% and 65%, respectively. Furthermore, Luxshare has secured a considerable 35% of the manufacturing proportion for the highest-tier iPhone 15 Pro Max.

The report from the Commercial Times also highlights that Luxshare has rapidly evolved into a pivotal player in Apple’s supply chain. In addition to handling the assembly of the iPhone 15, Luxshare has taken on the entire assembly of Apple’s heavyweight new product, the Vision Pro, this year. Moreover, Luxshare has secured a remarkable 40% of the shipment volume for the Apple Watch, establishing itself as the world’s leading outsourced manufacturer of smartwatches.

According to Taiwan’s TechNews, Foxconn’s founder, Terry Gou, announced his candidacy for the 2024 presidential election. Responding to questions about how Foxconn is navigating pressure over its China-based investments, Gou emphasized that he has identified a successor and, if the Chinese Communist Party were to confiscate Foxconn’s assets due to disobedience, he would respond with a resolute “Yes! Do It!” Following his remarks, Foxconn swiftly issued a statement emphasizing the company’s collective ownership by global investors. Gou, who relinquished his managerial role four years ago, is not involved in current management.

The statement from Foxconn noted that this year marks the company’s 49th year of existence, during which it’s been contemplating the next 50 years. The group is committed to ongoing transformation and sustainable development. Foxconn’s core values of sharing, collaboration, and mutual prosperity are aimed at leveraging its global stature to contribute to the economic growth and quality job opportunities in the 24 regions it operates in. This commitment to enhancing human welfare, both in the past and the future, remains Foxconn’s primary contribution.

Foxconn is steadfast in promoting corporate governance, operational independence (with a majority of independent directors on its board), and diversity (including female directors, executives, and employees), aspiring to set a benchmark for professional management. While not participating in political activities, Foxconn is dedicated to advancing sustainable operations, ensuring the company’s enduring vitality. This ethos, part of Foxconn’s DNA, drives continuous progress and improvement. Over nearly five decades, it has brought transformative technology products to people’s lives. Looking ahead to the next 50 years, Foxconn seeks to innovate its operational model, offering products that revolutionize the way people live and move.

(Photo credit: Foxconn)

BYD Electronics has revealed a strategic move by entering into an acquisition framework agreement with independent third-party Jabil. The plan is to acquire a full 100% ownership of Juno Newco Target Company, with the transaction valued at around RMB 15.8 billion.

Juno, headquartered in Singapore, will become a part of BYD Electronics after the reorganization is finalized. This move will grant BYD Electronics control over the product manufacturing operations located in Chengdu and Wuxi. This includes the manufacturing of components for existing clients.

The BYD Electronics board views this acquisition as an opportunity to expand the group’s customer and product portfolio, further diversifying into the smartphone component sector. The acquisition is expected to significantly enhance the structural alignment of the group’s customers and products, thus propelling the group’s industry advancement and facilitating entry into a new phase of rapid growth.

(Photo credit: BYD Electronics)

Apple is expected to unveil the iPhone 15 in September 2023, with minimal changes anticipated in its PCB design. According to research from TrendForce, the iPhone 16, set to launch in 2024, is projected to adopt the use of RCC (Resin Coated Copper) material for its mainboard to reduce the device’s thickness.

TrendForce’s analysis is as follows:

The iPhone 15 Pro Max will feature RFPCB for its periscope lens, while the iPhone 16 Pro series will utilize RCC for its mainboard.

Looking first at the primary changes in the iPhone 15’s PCB, constrained by factors such as device dimensions and product pricing, only the iPhone 15 Pro Max will incorporate a periscope lens. In contrast to the conventional FPC (Flexible Printed Circuit) used in typical lenses, the iPhone 15’s periscope lens will adopt RFPCB (Rigid-Flex Printed Circuit Board) to better utilize space and control the device’s thickness.

Currently, iPhones employ SLP (Substrate-Like PCB) for their mainboards. To achieve a thinner device profile, Apple is planning to introduce RCC as the mainboard material for the iPhone 16 Pro series, scheduled for the latter half of 2024. This will involve using 2 to 8 layers of RCC within the 18 to 20 layers of SLP.

However, based on supply chain information, RCC has not yet passed drop tests, leading to potential fractures between SLP layers. If this issue persists beyond the end of 2023, the adoption of RCC might be postponed until the introduction of the iPhone 17, which could be expected in 2025.

The SLP architecture is moving closer to ABF substrates, while RCC can only replace a portion of the CCL layers.

Taking a closer look at RCC’s material characteristics, RCC involves applying semi-cured epoxy resin onto copper foil after heating. The main distinction between RCC and standard CCL (Copper Clad Laminate) lies in the absence of glass fiber cloth in RCC. RCC primarily consists of resin and copper foil, and it employs ABF (Ajinomoto Build-up Film) instead of PP (Prepreg) as the insulating material between copper foil layers. RCC is also a material used in ABF substrates, indicating that SLP architecture is moving closer to ABF substrates.

Due to its lack of glass fiber cloth, RCC offers advantages such as reduced thickness and suitability for fine line designs. Its lower Dk (Dielectric constant) and Df (Dissipation Factor) characteristics contribute to high-frequency and high-speed transmission. However, due to its softer nature, RCC has poorer support capabilities, allowing it to only replace certain CCL layers.

It is expected that Ajinomoto will have a monopoly in the iPhone RCC market in 2024, with Taiwanese manufacturers potentially becoming suppliers in 2025.

In the supply chain realm, since ABF substrates also involve RCC, Ajinomoto, a primary ABF supplier, is projected to become the exclusive supplier of iPhone RCC materials in 2024. ITEQ, an early adopter of RCC materials, successfully developed RCC production lines by the end of 2021, making it the first Taiwanese CCL manufacturer to do so. As such, it stands a chance of becoming the second supplier.

EMC is a major supplier of iPhone mainboard CCL materials, with an estimated market share of around 95% in 2023. TSEC also successfully developed RCC materials in 2022, indicating that both ITEQ and EMC have potential to enter the iPhone RCC supply chain in 2025. Other companies, including Japanese firms Mitsubishi Gas Chemical, Panasonic, and Korean company Doosan Electronics, have also developed RCC materials, indicating an interest in becoming part of the iPhone RCC supply chain.

According to a report by Taiwan’s Economic Daily, the share of Chinese companies in Apple’s laptop manufacturing has expanded. After Luxshare secured assembly contracts for AirPods and iPhones, Chinese ODM Wingtec has commenced mass production of the 13-inch MacBook Air at its Kunming facility in Yunnan province, gradually eroding the historical market share of Taiwanese manufacturers like Foxconn and Quanta.

Both Foxconn and Quanta have exhibited relatively conservative stances towards the laptop market this quarter. Apple’s suppliers has typically refrained from commenting on competitor dynamics and single customer order trends. Quanta believes that the laptop market’s recovery is sluggish, with laptop shipments anticipated to decrease by 20% in the coming year. Additionally, the shift of certain Chromebook orders to an early June shipment date, coupled with a high base effect, is expected to result in a decline in the company’s laptop shipments this quarter.

On the other hand, at Foxconn, Chairman Young Liu previously stated that the company aimed to secure a larger market share in the personal computer (PC) segment. However, the decelerating momentum in the laptop industry demand is expected to persist into the latter half of the year. As a result, the third-quarter performance of the computer division is projected to remain on par with the second quarter while experiencing a decline compared to the same period last year.

Presently, Quanta is the largest assembly factory for Apple laptops, followed by Foxconn. According to China’s quality certification center, Wingtec has obtained a 3C quality certificate for its mass production of MacBook Air equipped with Apple’s M2 chip at the Kunming facility.

In the past, Apple’s MacBook Air product line was manufactured by both Foxconn and Quanta. Wingtec is the sole Chinese factory among Apple’s laptop manufacturers. Wingtec, known for its expertise in smartphone manufacturing, announced in April of this year that it secured Samsung’s 2023 smartphone and tablet ODM orders. In recent years, Wingtec has expanded its business scope to include semiconductors through acquisitions of automotive electronics firm Nexperia, successfully entering Apple’s supply chain.

Industry sources indicate that Apple is committed to diversifying MacBook laptop production to include various locations across China. Over the years, Apple has aimed to expand MacBook laptop production to more countries and companies. Analysts speculate that Apple’s ultimate plan is to allocate 55% of MacBook manufacturing to Quanta, 35% to Foxconn, and 10% to Wingtec.

(Photo credit: Apple)