According to a report from Commercial Times, Apple is said to have informed its suppliers and partners that it is confident in boosting sales of the upcoming iPhone 16, set to be released in the second half of this year, through the addition of AI features. Reportedly, the goal is to increase iPhone 16 shipments by approximately 10% compared to the iPhone 15, reaching 90 million units in the second half of this year.

Apple showcased its advancements in AI at the annual Worldwide Developers Conference (WWDC) in June, including the introduction of the generative AI large model Apple Intelligence, AI upgrades for Siri, and collaboration with OpenAI. Apple is expected to launch Apple Intelligence in the U.S. market this fall, with full functionality projected to be available in the spring of next year.

Per sources cited by Bloomberg, Apple did not perform well in the second half of last year, particularly facing challenges in its third-largest market, China. Huawei’s Mate 60 Pro, equipped with a domestically manufactured 7nm processor, has gained favor among local consumers.

The same report from Bloomberg indicated that after a turbulent 2023, Apple is relying on AI services to boost demand for its new products. Data cited by Bloomberg shows that in the second half of last year, iPhone 15 shipments were approximately 81 million units.

Furthermore, for the first quarter this year, TrendForce reported that Apple also faced a decline in sales in the Chinese market, resulting in a drop in annual production to 47.9 million units. This decline prompted several adjustments within the component supply chain, although production plans for processor chips remained unchanged. TrendForce posits that the second quarter falls within a product iteration gap for Apple, and production is expected to decrease by approximately 10%. 

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• Q1 Smartphone Production Increases Due to Low Base Last Year, Expected to Decline 5–10% in Q2, Says TrendForce
• [News] Apple’s AI Push on iPhone 16 in China Faces Obstacles in Finding Local Partners

(Photo credit: Apple)

On July 8, Xiaomi Chairman Lei Jun announced on Weibo that the new generation Xiaomi smartphone smart factory in Changping, Beijing, has officially started operations. According to a report from Economic Daily News, the factory has a total investment of CNY 2.4 billion (roughly USD 330 million) and a construction area of 81,000 square meters, with an annual production capacity of 10 million flagship smartphones. Lei Jun also revealed that the upcoming Xiaomi MIX Fold 4/Flip foldable phones, set to be released this month, will be manufactured at this facility.

This year, Xiaomi has completed two smart factories: the Changping smartphone factory and the Yizhuang automobile factory.

In fact, information about Xiaomi’s new folding phone, the MIX Fold 4, has recently been leaked on Chinese internet platforms. Digital bloggers previously revealed that this phone is powered by Qualcomm’s Snapdragon 8 Gen 3 chip.

Reportedly,  this factory is said to be Xiaomi’s first large-scale self-owned smartphone factory. Its launch marks a crucial milestone in Xiaomi’s smart manufacturing journey.

According to the report, the factory boasts a 96.8% self-developed packaging equipment rate, 100% self-developed factory software rate, and holds over 500 patents. It focuses on producing flagship smartphones and operates 24/7, with a daily production capacity of up to 30,000 smartphones.

For the smartphone production in the first quarter of 2024, TrendForce reports that the global top six manufacturers by production market share were Samsung, Apple, Xiaomi, OPPO, Transsion, and Vivo. Together, these companies accounted for nearly 80% of the market share.

Xiaomi (including Xiaomi, Redmi, and Poco) has moved past last year’s high inventory issues, achieving a total production of 41.1 million units in the first quarter and ranking third globally in market share.

Xiaomi Group Partner and President Lu Weibing revealed that the Changping factory is Xiaomi’s first truly smart factory. Key verifications for the Xiaomi 14 Gulf Blue Limited Edition and the craftsmanship of the Xiaomi 14 Ultra were all carried out here.

On the other hand, per another report from Securities Times, Xiaomi’s automobile factory in Yizhuang, Beijing, started dual-shift production in June, with monthly deliveries exceeding 10,000 vehicles.

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• [News] MediaTek and Xiaomi Opened a Joint Lab, the First Product with Stellar Performance Unveiled
• [News] China’s Xiaomi and Unisoc Claim Domestic 4nm Mobile Processors Coming Soon

(Photo credit: Xiaomi)

According to a report from Wccftech, Huawei’s Kirin 9100 processor is scheduled to be unveiled later this year, rumored to be manufactured using SMIC’s 5nm process. Its performance is reported to surpass that of the Qualcomm Snapdragon 8 Gen 2, and it will be featured in the entire Mate 70 series of smartphones.

The same report cited industry sources, suggesting that SMIC has successfully produced 5nm chips using DUV lithography instead of EUV, which is typically required for 5nm production. The high cost and low yield of DUV make it a challenging feat for most manufacturers. Fortunately, this breakthrough could help Huawei narrow the performance gap in its processors.

Reportedly, the Kirin 9100 is rumored to outperform the Snapdragon 8 Gen 2 overall and offer interface smoothness comparable to the Snapdragon 8 Gen 3. Huawei’s software optimization is anticipated to contribute significantly, as the company plans to launch HarmonyOS NEXT this year, completely moving away from the Google Android framework.

The report notd that switching to HarmonyOS NEXT has advantages, including memory usage that is three times more efficient than Android, and stringent resource consumption management. The new system can also be installed on older Huawei smartphones with previous-generation Kirin processors. Thanks to the 5nm process, the Kirin 9100 will also have improved energy efficiency. However, the actual performance will need to be verified once Huawei releases more detailed information.

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• [News] Huawei’s HarmonyOS Project Ready to Hit the Road with Increasing Participation from Chinese Enterprises
• [News] Huawei’s Self-developed AI Chip Challenges NVIDIA, Boasting Its Ascend 910B to Be Equal in Match With A100

(Photo credit: Huawei)

MediaTek and Qualcomm’s new wave of 5G flagship smartphone chip competition will begin in the fourth quarter. MediaTek is launching the “Dimensity 9400” to directly compete with Qualcomm’s “Snapdragon 8 Gen 4.” According to a report from Economic Daily News, both major manufacturers are using TSMC’s 3nm process to produce their new chips, which have recently entered the production phase.

Alongside this, NVIDIA, AMD, and Apple are also actively seeking TSMC’s 3nm capacity, resulting in TSMC securing another order and seeing a surge in its advanced process business.

It is understood that the queue for TSMC’s 3nm process capacity has extended all the way to 2026. To ensure the smooth launch of the Dimensity 9400, MediaTek has already started production at TSMC to secure sufficient supply capacity. The 3nm process is currently the most advanced node technology. Previously, TSMC mentioned that its 3nm process capacity will triple this year, but it still remains in short supply.

At the beginning of this year, MediaTek CEO Rick Tsai announced that the Dimensity 9400 would be unveiled in the fourth quarter. He stated that its performance would far exceed that of the current flagship chip, the Dimensity 9300, and that it would represent another significant peak in their technology.

MediaTek’s current flagship Dimensity 9300/9300+ chips are built using TSMC’s 4nm process. Reportedly, it is expected that with the support of TSMC’s 3nm process, the performance of the Dimensity 9400 will be further enhanced, making it a powerful tool for MediaTek to capture the market.

Although Qualcomm has not yet announced the launch schedule and details of its next-generation flagship chip, the Snapdragon 8 Gen 4, the same report believed that this chip will also be produced using TSMC’s 3nm process and will be launched in the fourth quarter, with upgraded performance.

Ming-Chi Kuo, renowned Apple analyst, previously reported that the Snapdragon 8 Gen 4 will be produced using TSMC’s N3E process, and its price may be 25% to 30% higher than the current Snapdragon 8 Gen 3, with each chip priced at $220 to $240.

In the second half of the year, numerous AI products will be launched in the consumer market. Per industry sources cited in an earlier report from Commercial Times, besides Qualcomm’s Snapdragon 8 Gen 4 and MediaTek’s Dimensity 9400,  Apple’s A18 and M4 series are also said to be built using TSMC’s N3 family. Moreover, Google’s Tensor G5 may compete in the market as well.

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• [News] IC Design Companies Adopting TSMC’s 3nm Process Trigger Cost-driven Price Hikes
• [News] Major Clients Reportedly Fully Allocate TSMC’s Production Capacity Until 2026, 3nm Process in High Demand
  

(Photo credit: Qualcomm)

Google’s Tensor G4 could mark Samsung’s last mass-produced SoC, as earlier in May, Tensor G5 is reportedly adopting TSMC’s advanced 3nm process. Now here’s the latest development. According to a report by Wccftech, the chip, to be used in Google’s upcoming Pixel 10 lineup, has already reached tape-out, with mass production expected in 2025.

Google’s Tensor G5 would be its first fully self-designed smartphone SoC. Previous Tensor chips, somehow, were modifications from Samsung’s Exynos series, with Samsung being its foundry partner.

The report stated that Google’s decision to collaborate with TSMC is influenced by the Taiwanese semiconductor company’s established reliability in mass-producing wafers using its next-generation nodes.

Before Google, the foundry behemoth has already secured several major clients for its 3nm node. Both Qualcomm and Taiwanese smartphone fabless company MediaTek have reportedly adopted TSMC’s N3E node for their first 3nm chipsets. Apple’s upcoming A18 chips for iPhone 16 models, are said to be manufactured with TSMC’s N3E node as well, according to a report by Commercial Times.

On the other hand, regarding the progress of 3nm, Samsung is still struggling with the low yield rate for its latest Exynos 2500 processors. The company targets to increase the yield rate to over 60% before the product enters mass production, according to a previous report by Korean media outlet ZDNet Korea.

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• [News] Google Reportedly Shifts Orders from Samsung to TSMC for Its Upcoming Tensor G5 in the Pixel 10 Series

(Photo credit: Google)