As September draws closer and iPhone 16’s release date is nearing, suppliers have been ramping up their production of iPhone 16 OLED panels in preparation. According to the reports by ETNews and MacRumors, Samsung Display and LG Display started initial production of iPhone 16 OLED panels as early as in June, and have substantially boosted production over the past month.

ETnews notes that Apple is forecasting shipments of approximately 90 million iPhone 16 units this year, while the production of OLED panels is estimated to be around 30% higher, totaling about 120 million units.

Among them, Samsung is said to have the lion’s share by supplying around 80 million OLED panels by the end of this year, while LGD is projected to provide approximately 43 million panels, according to ETnews. Both companies are on track to meet these production targets.

The reports states that the iPhone 16, iPhone 16 Plus, iPhone 16 Pro, and iPhone 16 Pro Max will have a design similar to the iPhone 15 models, but Apple is increasing the sizes of the iPhone 16 Pro and iPhone 16 Pro Max.

The iPhone 16 Pro will feature a 6.3-inch display, up from 6.1 inches, while the iPhone 16 Pro Max will have a 6.9-inch display, an increase from 6.7 inches. The display sizes for the standard iPhone 16 models will remain unchanged, with the iPhone 16 maintaining a 6.1-inch display and the iPhone 16 Plus featuring a 6.7-inch display.

Earlier in May, both LG Display and Samsung Display secured orders for OLED panels for Apple’s iPhone 16 Pro, according to a previous report from The Elec. Subsequently, LG Display also has acquired orders for iPhone 16 Pro Max panels.

It seems that Apple tends to release more OLED orders to LGD and counts on it to be a solid second supplier. Another report by The Elec reveals that Apple is likely to use LGD as the second supplier for the OLED screens of next year’s iPhone SE 4. The iPhone SE series is Apple’s budget-friendly option, traditionally sourcing screens exclusively from the Chinese manufacturer BOE.

Read more

• [News] Apple May Choose LGD as Second Supplier for iPhone SE 4 OLED
• [News] Fuelled by AI Features, Apple’s iPhone 16 Shipments Reportedly to Increase by 10%

(Photo credit Apple)

While HP is making a move to withdraw over half of its PC production lines from China, according to a report from Economic Daily News, ODM such as Quanta and Inventec have already started setting up operations in Thailand to address their clients’ need to reduce geopolitical risks by shifting supply chain.

Reportedly, HP is planning to transfer its manufacturing base to Thailand, with the ultimate goal of having 70% of its laptops manufactured outside of China.

As early as July last year, it was rumored that HP intended to follow the example of brands like Dell and Apple in promoting supply chain diversification by moving PC production lines out of China to locations such as Thailand and Mexico.

Amid ongoing US-China tensions, ODMs have accelerated their expansion into the Southeast Asian market post-pandemic. Quanta established a plant in Thailand as early as 2019 to meet customers’ needs for diversified manufacturing sites. Currently, its Thailand facility produces servers, consumer electronics, and laptops.

Initially, Quanta’s Thailand plant primarily focused on manufacturing Chromebooks and other consumer products. However, due to lower-than-expected customer orders, Quanta expanded its server capacity and pursued laptop manufacturing orders.

With HP increasing its production in Thailand, Quanta aims to leverage its years of established presence in Thailand to secure more orders.

For the past two years, Quanta has reportedly accelerated its expansion of overseas capacity. This year, its capital expenditures are expected to increase to NTD 10 billion, up from NTD 8.8 billion last year, marking a 13.6% year-on-year increase and surpassing the 10 billion threshold. This investment will support expansion needs in Europe, the US, Thailand, and Mexico.

Inventec originally planned to assist HP with laptop production in Mexico, but with HP deciding to relocate its main production base to Thailand, Inventec has urgently rented local plant space to secure customer orders.

At the end of last year, Inventec announced a USD 152 million investment in a new plant in Thailand to produce laptops and servers. Server production line is expected to be completed by the end of this year, with operations beginning in the first quarter of next year, while laptop production line is also expected to be completed in the first quarter of next year.

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• [News] NVIDIA Reportedly Facing Price Cut Pressure of H20 Chip in China Amid Competition with Huawei
• [News] NVIDIA’s China-Exclusive H20 to Begin Pre-sales Next Month

(Photo credit: HP)

TSMC’s fan-out (InFO) packaging process will no longer be exclusively used by Apple. According to a report from Commercial Times, it’s revealed that Google’s self-developed Tensor chips for their phones will switch to TSMC’s 3nm process next year and will also start using InFO packaging.

TSMC developed InFO packaging based on FOWLP (fan-out wafer-level packaging), which gained prominence after being adopted by the A10 processor in the iPhone 7 in 2016.

TSMC indicated that the current InFO_PoP technology has advanced to its ninth generation. Last year, it successfully certified 3nm chips, achieving higher efficiency and lower power consumption for mobile devices. The InFO_PoP technology, which features a backside redistribution layer (RDL), has entered mass production this year.

According to industry sources cited by the Commercial Times, Google will shift to TSMC for the Tensor G5 chips, which will be used in the Pixel 10 series next year. These chips will not only utilize the 3nm process but will also adopt integrated fan-out packaging.

This year’s Tensor G4 chips, set to be announced soon, use Samsung’s FOPLP (fan-out panel-level packaging). Although wafer-level packaging (WLP) is generally considered to have advantages over panel-level packaging (PLP), FOWLP still prevails at this stage due to yield and cost considerations.

TSMC has also begun developing FOPLP technology. Previously, per sources cited by a report from MoneyDJ, TSMC has officially formed a team, currently in the “Pathfinding” phase, and is planning to establish a mini line with a clear goal of advancing beyond traditional methods.

Although it is not expected to mature within the next three years, major customers like NVIDIA have partnered with foundry companies to develop new materials. One of TSMC’s major clients has already provided specifications for using glass materials.

Traditionally, chip advancements have been achieved through more advanced process nodes. However, new materials could enable the integration of more transistors on a single chip, achieving the same goal of scaling.

For instance, Intel plans to use glass substrates by 2030, potentially allowing a single chip to house one trillion transistors – 50 times the number in Apple’s A17 Pro processor. This suggests that glass substrates could become a significant milestone in chip development.

Another sources cited by Commercial Times have also indicated that glass substrates are part of the medium- to long-term technological roadmap. They can address challenges in large-size, high-density interconnect substrate development.

Currently, this technology is in the early stages of research and development. Its impact on ABF (Ajinomoto Build-up Film) substrates is expected to become significant in the second half of 2027 or later.

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• [News] TSMC Pushes for FOPLP Mass Production by 2027, Reportedly Eyeing on Innolux’s Plant
• [News] TSMC Reportedly Forms a Team on FOPLP Development, with Mini Line on the Road

(Photo credit: TSMC)

Amid Apple’s intention to reduce its dependence on China and promote India as another major iPhone production hub, Indian financial media outlet Moneycontrol has revealed in a report that Apple will manufacture the iPhone 16 Pro series in India, marking the company’s first production of high-end models in the country.

According to the report citing industry sources, Apple will further expand its manufacturing plans in India. It is expected that later this year, production of the iPhone 16 Pro and iPhone 16 Pro MAX will begin at Foxconn’s Sriperumbudur plant in Kancheepuram, Tamil Nadu, India.

Currently, the plant is said to be entering the new product introduction (NPI) phase for the iPhone 16 Pro series. Reportedly, if all goes well, it will then proceed to the mass production stage.

At the end of last year, Foxconn announced that its Indian subsidiary would expand its plant, marking one of Foxconn’s rare significant investments in India in recent years.

At the time, some have speculated that this move was a preliminary step in conducting the iPhone 16 series NPI in India. This would be the first time in iPhone history that NPI is conducted outside of China, indicating that Apple aims to establish India as another major global iPhone production hub.

The report further indicates that this strategy is part of Apple’s supply chain diversification efforts, aiming to reduce reliance on Chinese plants and enhance manufacturing capabilities in India. Apple hopes to increase the proportion of iPhones manufactured in India from the current 14% to 25% in the coming years.

Apple began its “Make in India” initiative in 2017 by assembling the first-generation iPhone SE. Since then, Apple has gradually expanded its iPhone production in India, assembling the iPhone 6S in 2018, the iPhone 7 and XR in 2019, the iPhone 11 in 2020, the iPhone 12 and iPhone 13 in 2021, and the iPhone 14 in 2022.

Previously, iPhone production in India lagged behind China’s mass production by about 6 to 9 months. Last year, for the first time, Apple began producing the iPhone 15 and 15 Plus in India immediately after the iPhone launch event. This year, Apple is taking a further step by producing the high-end iPhone 16 Pro series in India.

Additionally, Apple reportedly plans to start manufacturing iPads and AirPods in India later this year, highlighting Apple’s growing focus on the Indian market.

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• [News] Fuelled by AI Features, Apple’s iPhone 16 Shipments Reportedly to Increase by 10%
• [News] Apple Reportedly Doubles iPhone Production in India, while Foxconn Holds 67% Share

(Photo credit: Apple)

The iPhone SE series is Apple’s budget-friendly option, traditionally sourcing screens exclusively from the Chinese manufacturer BOE. However, a report from Korean media outlet The Elec indicated that Apple is expected to use LG Display (LGD) as the second supplier for the OLED screens of next year’s iPhone SE 4, while BOE remains the primary supplier for the iPhone SE 4 screens.

The iPhone SE series typically uses parts from older models but is unique in pairing them with the latest processors, ensuring superior performance compared to competitors in the same price range. Notably, Apple releases the iPhone SE series in emerging markets like India.

Per the same report from The Elec, the iPhone SE 4 is expected to use the OLED display from the iPhone 13, making it easier for display manufacturers to produce.

Apple has historically supported BOE as an iPhone OLED screen supplier to reduce the influence of South Korean companies like Samsung Display and LGD. However, BOE is said to have faced difficulties in securing large iPhone orders due to challenges in meeting Apple’s perforated screen technology requirements, as seen with the iPhone 15.

Moreover, BOE is reportedly encountering challenges in producing OLED screens for the iPhone 16 as well, resulting in lower output compared to its Korean competitors.

Earlier in May this year, both LG Display and Samsung Display secured orders for OLED panels for Apple’s iPhone 16 Pro, according to a previous report from “The Elec.” Subsequently, LG Display also has acquired orders for iPhone 16 Pro Max panels, which could be the first time ever for LG Display to be ahead of Samsung display.

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• [News] Novatek’s Supply Advantage Fades, as Korean Competitor Reportedly Secures iPhone 16 Order
• [News] Taiwanese IC Design Company Novatek Reportedly Secured a Spot in iPhone 16 via Collaboration with LGD

(Photo credit: Apple)