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.

Read more

• [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)

Samsung Electronics, which has been surround by concerns that its HBM3e products are still struggling to pass NVIDIA’s qualifications, has confirmed in its second quarter earnings call that the company’s fifth-generation 8-layer HBM3e is currently undergoing customer valuation, and is scheduled to enter mass production in the third quarter, according to a report by Business Korea.

TrendForce notes that Samsung’s recent progress on HBM3e qualification seems to be solid, and we can soon expect both 8hi and 12hi to be qualified in the near future. The company is eager to gain higher HBM market share from SK hynix so its 1alpha capacity has reserved for HBM3e. TrendForce believes that Samsung is going to be a very important supplier on HBM category.

Driven by the momentum, the report from Business Korea, citing an official speaking at the conference call on July 31^st, states that the share of HBM3e chips within Samsung’s HBMs is anticipated to surpass the mid-10 percent range in the third quarter. Moreover, it is projected to speedily grow to 60% by the fourth quarter.

According to Samsung, its HBM sales in the second quarter already grew by around 50% from the previous quarter. Being ambitious about its HBM3 and HBM3e sales, Samsung projects its HBM sales will increase three to five times in the second half of 2024, driven by a steep rise of about two times each quarter.

Samsung has already taken a big leap on HBM as its HBM3 chips are said to have been cleared by NVIDIA last week. According to a previous report by Reuters, Samsung’s HBM3 will initially be used exclusively in the AI giant’s H20, which is tailored for the Chinese market.

On the other hand, the South Korean memory giant notes that it has completed the preparations for volume production of its 12-layer HBM3e chips. The company plans to expand the supply in the second half of 2024 to meet the schedules requested by multiple customers, according to Business Korea. The progress of its sixth-generation HBM4 is also on track, scheduled to begin shipping in the second half of 2025, Business Korea notes.

Samsung Electronics reported higher-than-expected financial results in the second quarter, with a six-fold year-on-year increase in net income, soaring from KRW 1.55 trillion won (USD 1.12 billion) to KRW 9.64 trillion (USD 6.96 billion), as demand for its advanced memory chips that are crucial for AI training remained strong.

SK hynix, as the current HBM market leader, has expressed its optimism in securing the throne as well. The company reportedly expects its HBM3e shipments to surpass those of HBM3 in the third quarter, with HBM3e accounting for more than half of the total HBM shipments in 2024. In addition, it expects to begin supplying 12-layer HBM3e products to customers in the fourth quarter.

Micron, on the other hand, has reportedly started mass production of 8-layer HBM3e as early as in February. The company reportedly plans to complete preparations for mass production of 12-layer HBM3e in the second half and supply it to major customers like NVIDIA in 2025.

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• [News] Samsung’s Q2 Profits Soar to USD 7.5 Billion, Seeing Strong Demand for HBM, DDR5 and Server SSD in 2H24
• [News] Samsung Sees Solid Demand for 3nm in 2H24, Aiming a Ninefold Increase in AI/HPC Sales by 2028

(Photo credit: Samsung)

According to a report from Bloomberg, the US is reportedly considering new measures and could unilaterally impose restrictions on China as early as late August. These measures would limit China’s access to AI memory and related equipment capable of producing them.

Moreover, another report from Reuters further indicates that US allies, including semiconductor equipment manufacturers from Japan, the Netherlands, and South Korea—such as major Dutch semiconductor equipment maker ASML and Tokyo Electron—will not be affected in their shipments. The report also notes that countries whose exports will be impacted include Israel, Taiwan, Singapore, and Malaysia. 

Bloomberg, citing sources, revealed that the purpose of these measures is to prevent major memory manufacturers like Micron, SK hynix, and Samsung Electronics from selling high-bandwidth memory (HBM) to China.

These three companies dominate the global HBM market. Reportedly, regarding this matter, Micron declined to comment, while Samsung and SK hynix did not immediately respond to requests for comment. 

Bloomberg’s source also emphasized that the US has yet made a final decision. The source also state that if implemented, the new measures would cover chips such as HBM2, HBM3, and HBM3e, as well as the equipment needed to manufacture these chips.

The source further revealed that Micron will essentially not be affected by the new regulations, as Micron stopped exporting HBM to China after China banned Micron’s memory from being used in critical infrastructure in 2023.

Reportedly, it is still unclear what methods the US will use to restrict South Korean companies. One possibility is the Foreign Direct Product Rule (FDPR). Under this rule, if a foreign-made product uses any US technology, even just a small amount, the US can impose restrictions.

Both SK hynix and Samsung are said to be relying on chip design software and equipment from US companies such as Cadence Design Systems and Applied Materials.

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• [News] U.S. Reportedly Enhancing Chip Export Restrictions to China, while NVIDIA’s H20 Might Get Banned
  
• [News] China-US Chip War Escalated as YMTC Sues Micron for Patent Infringement

(Photo credit: SK hynix)

To jointly promote the development of Hong Kong’s microelectronics industry, Hong Kong Science and Technology Parks Corporation and MassPhoton (Hong Kong) held a launch ceremony for Hong Kong’s first ultra-high vacuum “Third-Generation Semiconductor Gallium Nitride Epitaxial Wafer Pilot Line” on July 30.

Reportedly, MassPhoton will move into the newly established Microelectronics Center (MEC) to build Hong Kong’s first 8-inch gallium nitride (GaN) epi-wafer pilot line.

According to reports from media like China News Service, MassPhoton plans to invest at least HKD 200 million in Hong Kong to establish the region’s first global R&D center for third-generation semiconductor GaN epitaxial processes in the Hong Kong Science Park. The center will develop an advanced 8-inch GaN epi-wafer process and equipment platform for the production of GaN optoelectronic and power devices.

In addition, MassPhoton will set up Hong Kong’s first ultra-high vacuum production GaN epi-wafer pilot line in the Innovation Park for small-scale production.

The pilot line is expected to be completed, followed by the construction of a GaN epi-wafer mass production line in Hong Kong, creating over 250 microelectronics-related jobs, including epi-wafer and equipment design, production process development, and more, thereby generating substantial economic value.

Currently, the global semiconductor industry is developing rapidly, simultaneously boosting the GaN market size. According to a previous TrendForce’s report, the global GaN power device market is expected to grow from USD 180 million in 2022 to USD 1.33 billion in 2026, with a compound annual growth rate (CAGR) of up to 65%.

Against this backdrop, Hong Kong has prioritized the development of third-generation semiconductor as a key technology field in recent years. For instance, in May 2024, the Finance Committee of the Hong Kong Legislative Council approved a significant investment of HKD 2.83 billion to establish the “Hong Kong Microelectronics R&D Center,” focusing on third-generation semiconductor technologies.

This plan includes setting up a pilot production line equipped with a broad range of critical tools such as I-line lithography equipment, photoresist development tools, high-temperature ion implanters, high-temperature annealing furnaces, and thin-film tools.

Sun Dong, Secretary for Innovation, Technology and Industry of the Hong Kong Special Administrative Region Government, introduced that the government is actively promoting the development of microelectronics industry, and the Hong Kong Microelectronics R&D Institute will be established within the year, accompanying the construction of a SiC pilot line and a GaN pilot line.

The goal is to assist startups and SMEs in trial production, testing, and certification, fostering collaboration across industry, academia, and research in core technologies of third-generation semiconductor industry.

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• [News] Foundry Giant GlobalFoundries Acquired GaN-Related IP
• [News] Over 350 China’s Semiconductor Industry Projects Thriving in 2023

(Photo credit: Hong Kong Science and Technology Parks Corporation)

NVIDIA’s next-generation Blackwell architecture AI superchip is about to ship. According to a report from Commercial Times, on July 29 during the SIGGRAPH conference in Denver, USA, NVIDIA announced a series of software updates and revealed that samples of the new AI chip architecture Blackwell have been distributed, sparking optimism about the company’s continued record-breaking performance.

Industry sources cited by the report have indicated that the Blackwell series is regarded by Jensen Huang as the most successful product in history. It is expected to drive a new wave of AI server data center construction by cloud service providers (CSPs).

The report notes further that in addition to TSMC’s 4nm process being in high demand, the increasing penetration of water cooling technology, which is projected to reach up to 10%, is likely to benefit Cooling Distribution Unit suppliers such as Vertiv, as well as companies like Asia Vital Components, AURAS Technology, Delta Electronics, and Cool IT.

Furthermore, the new AI superchip is expected to start shipping to clients in the fourth quarter, with full-scale production set for 2025. Assembly plants will also benefit, including Wistron, Foxconn (through its subsidiary Ingrasys), which are involved in front-end manufacturing of substrates, computing boards, and switch boards.

Companies such as Wiwynn, Quanta (Quanta Cloud Technology), Inventec, GIGABYTE, ASUS, and ASRock are also expected to see increased orders for their rack-mounted systems. Among these, Quanta, Wiwynn, and Inventec have indicated that their related products are expected to start shipping in the fourth quarter, with further increases in volume anticipated in the first half of next year.

The NVIDIA Blackwell platform is set to become the main solution for NVIDIA’s high-end GPUs. TrendForce estimates that GB200 NVL36 shipments are expected to reach 60,000 units in 2025, with Blackwell GPU usage between 2.1 to 2.2 million units, making Blackwell the mainstream platform and accounting for over 80% of NVIDIA’s high-end GPUs.

TrendForce observes that the GB200 NVL36 architecture will initially utilize a combination of air and liquid cooling solutions, while the NVL72, due to higher cooling demands, will primarily employ liquid cooling.

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• [News] NVIDIA Reportedly Developing Tailored Version of the Blackwell Series for Chinese Market
• [News] NVIDIA CEO Jensen Huang Estimates Blackwell Chip Price Around USD 30,000 to USD 40,000

(Photo credit: NVIDIA)