According to Taiwan’s Economic Daily, while two high-end models of the iPhone 16 are expected to feature larger screens next year, there are indications that the new iPhone SE, positioned as an entry-level device, will also follow suit by enlarging its display. Insider sources have revealed that the iPhone SE is set to enter its fourth generation, taking design cues from the iPhone 14 base model, with a 6.1-inch screen and the elimination of Touch ID and Home button in favor of Face ID as the biometric authentication solution.

The current iPhone SE, in its third generation, is the only iPhone model with both Touch ID and a Home button. If the fourth-generation iPhone SE no longer includes the Home button and eliminates Touch ID, it would mean that all iPhones will feature a full-screen design.

Furthermore, reports from the market suggest that the fourth-generation iPhone SE will sport a 6.1-inch screen, a significant increase compared to the 4.7-inch display of the third-generation iPhone SE released in 2022. In terms of performance, the fourth-generation iPhone SE is expected to be powered by Apple’s A15 chip.

According to Taiwan’s Economic Daily, after disassembling Huawei’s Mate 60 Pro smartphone, it has been revealed that the chips, including the Kirin 9000S, are produced by China’s semiconductor foundry, SMIC, using their advanced 7-nanometer process. This development has brought attention to SMIC’s manufacturing capabilities. Recently, it has been reported that SMIC has placed a substantial order with Taiwanese suppliers in the supply chain, equivalent to approximately two years’ worth of demand, and is urging swift delivery.

While SMIC has established itself in mature semiconductor manufacturing processes and serves not only domestic IC design companies but also many Taiwanese IC design firms, it has been actively trying to catch up with foreign giants in advanced manufacturing processes. Additionally, limitations in acquiring equipment like EUV have constrained its progress, making its achievements in the 7-nanometer process a noteworthy accomplishment.

In light of these developments, it has been reported that SMIC has approached Taiwanese partner companies to secure a substantial supply of specific products for an estimated two-year period, likely to be used in their advanced 7-nanometer manufacturing process. SMIC is hoping for proactive cooperation from its supply chain partners to ensure prompt delivery.

(Photo credit: SMIC)

According to the latest data from TrendForce, car sales across 37 regional markets (as indicated in the notes under the table above) in August totaled 5.55 million vehicles, representing an increase of nearly 1% compared with July. This modest growth can be attributed to the upcoming launch of new vehicle models by automakers for the fall season. Some consumers were anticipating price reductions on existing models, while others were waiting for the release of new ones. Therefore, it is expected that car sales will be concentrated in the month of September.

The rankings of the top 10 car brands for August remained the same compared with July. The top three brands, in order, were Toyota, Volkswagen, and Honda. In August, the Japanese car market experienced a seasonal slowdown, leading to a drop in sales for most Japanese automakers. Compared with the previous month, Toyota posted a decline of 2.6%, whereas Honda posted a slight increase of 0.8%.

Chinese automaker BYD surpassed Ford to become the fourth-largest global car brand in terms of car sales for August. Despite the weakening demand in the domestic car market, BYD was not significantly affected as all of its offerings are new energy vehicles. BYD saw a 5% increase in car sales compared with July and was just 0.1 percentage point behind Honda in market share, which held the third position. Japanese automakers can still rely on demand from regional markets such as Southeast Asia to drive their vehicle sales. Therefore, accelerating the pace of overseas expansion is a key challenge for BYD if it seeks to surpass Honda on a global scale.

As for Ford, its performance in August showed a contraction in sales in Europe and the US. With a decline of 6.7% compared with the previous month, Ford dropped to sixth place.

While the launch of new vehicle models this fall is expected to boost new car sales, several factors continue to influence regional markets. These factors include the ongoing strike by the United Auto Workers in the US and Russia’s announcement on September 21st regarding restrictions on the exportation of gasoline and diesel. Russia’s actions could once again impact Europe’s energy supply and lead to a surge in oil prices. Such development could also disrupt governments’ efforts to ease inflation. If inflation heats up again, the consumer market might weaken further, and central banks could be compelled to raise interest rates once more.

China is currently stimulating domestic demand through various policies, but abnormal weather conditions in various parts of the country since the summer have affected local sales. In general, TrendForce believes that as the fourth quarter approaches, automakers will do their utmost to ensure smooth production, meet orders promptly, and spur sales during the year-end holiday season. They will strive to minimize the impact of the reduction in demand visibility caused by the latest economic turbulence.

According to reports from the Hong Kong’s etnet, it was announced in early September that China’s National Integrated Circuit Industry Investment Fund (known as the “Big Fund”) is planning to organize its third fund, with a scale reaching 300 billion yuan, aimed at supporting and revitalizing the semiconductor industry.

However, in response to the latest reports, the initial fundraising phase of the third Big Fund has encountered difficulties due to the challenging economic recovery environment in China. The China State Council Information Office, the Ministry of Industry and Information Technology, and the Big Fund have not yet provided any official response to these reports.

The China National Integrated Circuit Industry Investment Fund launched its first fund in 2014 and its second fund in 2019, raising approximately 138.7 billion yuan and 200 billion yuan, respectively. These funds were intended to bolster China’s semiconductor industry and compete more vigorously with the United States and other global rivals. Contributors to the Big Fund include the Ministry of Finance, China Development Bank Capital, China National Tobacco Corporation, and China Mobile, among others. The Big Fund has invested in various chip companies, including China’s leading semiconductor foundry, SMIC (Semiconductor Manufacturing International Corporation). Collectively, the first two Big Funds held approximately 9.4% of the company’s equity.

Despite being a key player in China’s semiconductor investment landscape, the Big Fund faced a scandal in mid-2022 involving allegations of illegal activities. Several officials, including Ding Wenwu, the former General Manager of the National Big Fund, and senior executives from SINO-IC Capital, the fund manager, were investigated by the Central Commission for Discipline Inspection. This incident raised concerns about its potential impact on the development of China’s semiconductor industry.

According to a report by Taiwan’s TechNews, Samsung Electronics’ semiconductor foundry division, Samsung Foundry, has been operating at less than 50% utilization rate as of the second quarter due to weak demand for 8-inch wafer foundry services. Industry sources have revealed that Samsung Foundry has already halted operations on 30% of its equipment, but with further inventory reduction expected, there is a possibility of restarting these machines by the end of the year and resuming production in the first quarter of the following year.

Previously, South Korean media outlet The Elec reported that the IT industry’s demand is currently low, leading South Korean wafer foundries to reduce prices for 8-inch wafer services by 10%. As of the second quarter, both Samsung Foundry and other South Korean wafer foundry companies like Key Foundry and SK Hynix System IC, a subsidiary of SK Hynix engaged in foundry operations, have been operating at capacity utilization rates ranging from 40% to 50%.

8-inch wafer services primarily manufacture components such as power management ICs, panel driver ICs, and microcontrollers. Given the uncertain demand for consumer electronics products, Samsung Foundry has decided to halt operations on 30% of its equipment as a cost-saving measure. However, market expectations suggest that the overall manufacturing and semiconductor industries have undergone more than a year and a half of inventory adjustment, and there is hope for inventory replenishment by the end of the year in the supply chains of three major sectors: smartphones, PCs, and consumer electronics.

According to industry sources, Samsung Foundry plans to restart the halted 8-inch wafer equipment by the end of the year and aims to resume full production in the first quarter of the next year. However, the revival of consumer product demand has not yet shown clear signs, and whether the restart will proceed as expected remains to be observed.

(Photo credit: Samsung)