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)

NVIDIA Beats Expectations with Q2 Financial Results and Optimistic Q3 Outlook, But Overall Semiconductor Short-Term Prospects Remain Weak, According to Taiwan’s Central News Agency.

While the semiconductor industry remains subdued, NVIDIA stands out with robust operational performance and a positive outlook. The company reported Q2 revenue of $13.51 billion, an 88% increase from the previous quarter and double the figure from the same period last year. Net income reached $6.19 billion, translating to $2.48 per share. NVIDIA anticipates Q3 revenue to further reach around $16 billion, marking a 170% YoY increase.

According to research firm TrendForce, NVIDIA’s rapid data center business growth is the primary driver. In Q4 of the fiscal year 2022, data center revenue accounted for about 42.7% of the total, surpassing gaming. In Q1 of FY 2023, it exceeded 45%, and by Q2 of FY 2024, data center revenue reached $10.32 billion, a 141% increase from the previous quarter and a 171% YoY increase, making up more than 76% of total revenue.

TrendForce notes that AI server solutions are pivotal in propelling NVIDIA’s data center growth, including AI accelerator GPUs and AI server reference architecture like HGX.

Arisa Liu, a researcher and director at Taiwan Industry Economics Services, mentioned that NVIDIA’s outstanding performance underscores its solid leadership in the AI market. She emphasized that customer demand for AI-related solutions is consistently on the rise.

Liu also mentioned that NVIDIA’s supply chain is expected to benefit in tandem. Orders for TSMC’s 7nm, 4nm, and 3nm advanced processes might increase. Advanced packaging technologies like CoWoS are expected to remain in high demand. In addition, orders for silicon intellectual property, high-speed transmission components, power supply, PCBs, chassis, and server OEMs are likely to see growth.

However, Liu indicated that due to the relatively low share of the AI market, it cannot fully offset the impact of sluggish demand in major application markets such as computers, smartphones, and consumer electronics. As a result, the short-term semiconductor market conditions are expected to remain weak.

(Photo credit: NVIDIA)

According to a report by Taiwan’s Economic Daily, a trend is taking shape as computer brand manufacturers venture into the AI server market. Notably swift on this path are Taiwan’s ASUS, Gigabyte, MSI, and MITAC. All four companies hold a positive outlook on the potential of AI server-related business, with expectations of reaping benefits starting in the latter half of this year and further enhancing their business contributions next year.

Presently, significant bulk orders for AI servers are stemming from large-scale cloud service providers (CSPs), which has also presented substantial opportunities for major electronic manufacturing services (EMS) players like Wistron and Quanta that have an early foothold in server manufacturing. As the popularity of generative AI surges, other internet-based enterprises, medical institutions, academic bodies, and more are intensifying their procurement of AI servers, opening doors for brand server manufacturers to tap into this burgeoning market.

ASUS asserts that with the sustained growth of data center/CSP server operations in recent years, the company’s internal production capacity is primed for action, with AI server business projected to at least double in growth by next year. Having established a small assembly plant in California, USA, and repurposing their Czech Republic facility from a repair center to a PC manufacturing or server assembly line, ASUS is actively expanding its production capabilities.

In Taiwan, investments are also being made to bolster server manufacturing capabilities. ASUS ‘s Shulin factory has set up a dedicated server assembly line, while the Luzhu plant in Taoyuan is slated for reconstruction to produce low-volume, high-complexity servers and IoT devices, expected to come online in 2024.

Gigabyte covers the spectrum of server products from L6 to L10, with a focus this year on driving growth in HPC and AI servers. Gigabyte previously stated that servers contribute to around 25% of the company’s revenue, with AI servers already in delivery and an estimated penetration rate of approximately 30% for AI servers equipped with GPUs.

MSI’s server revenue stands at around NT$5 billion, constituting roughly 2.7% of the company’s total revenue. While MSI primarily targets small and medium-sized customers with security and networking servers, the company has ventured into the AI server market with servers equipped with GPUs such as the NVIDIA RTX 4080/4090. In response to the surging demand for NVIDIA A100 and H100 AI chips, MSI plans to invest resources, with server revenue expected to grow by 20% to NT$6 billion in 2024, with AI servers contributing 10% to server revenue.

MITAC ‘s server business encompasses both OEM and branding. With MITAC’s takeover of Intel’s Data Center Solutions Group (DSG) business in July, the company inherited numerous small and medium-sized clients that were previously under Intel’s management.

(Photo credit: ASUS)