TrendForce’s investigation into the supply chain reveals that Apple plans to upgrade the PCB materials in its new iPhone models in 2024. The current copper-clad laminate (CCL) will be partially replaced with resin-coated copper (RCC), aiming to reduce the size and thickness of the mainboard. This upgrade is expected to enhance electronic signal transmission efficiency, reduce energy consumption, and save internal space, providing more room for increased battery capacity.

Apple first introduced the substrate-like PCB (SLP) with the launch of the iPhone X in 2017. SLP offers advantages over conventional high-density interconnect (HDI) PCBs by reducing line width and spacing, optimizing PCB area, and increasing battery space. This design has remained unchanged since its introduction. However, recent discussions within the supply chain indicate that there are plans to introduce RCC materials in the second half of 2024 for the upcoming iPhones, marking an upgrade after a seven-year gap.

The main difference between RCC and traditional CCL lies in their structure. RCC eliminates one layer of fiberglass cloth, significantly reducing the overall thickness of the PCB. It also simplifies the manufacturing process and improves the laser drilling yield. In terms of component performance, RCC allows for further reduction in line width and spacing of circuit wiring based on SLP, reducing the spacing between various passive and active components on the board. It even enables the embedding of some passive components, thereby saving space required for surface mount technology (SMT) processes. All these upgrades contribute to greater power efficiency and improved performance in end devices.

Considering the similarities between RCC and ABF substrates in terms of the manufacturing process, the most likely supplier for RCC is the Japanese company Ajinomoto. If Apple successfully replaces some layers with RCC in 2024, it may impact the demand for existing CCL, particularly affecting the CCL supplier, Elite Material (EMC). It is anticipated that EMC’s RCC product may require 1-2 more years of research and development before it has a chance to be completed.

For more information on reports and market data from TrendForce’s Department of Semiconductor Research, please click here, or email Ms. Latte Chung from the Sales Department at lattechung@trendforce.com

Throughout this year, the Micro LED industry has been receiving a constant stream of positive news in terms of new product launches, latest technological achievements, project progress, and investment and financing. This has once again accelerated the commercial development of Micro LED. TrendForce has collected and compiled various dynamics of Micro LED since the beginning of the year, providing a retrospective view of the latest progress in the Micro LED industry.

As of early June, a diverse array of Micro LED-related products have emerged this year, covering essential aspects of the Micro LED industry. These products include upstream components such as wafers, chips, devices, backplane materials, driver ICs, production equipment, micro displays, and micro display modules, as well as downstream end-user products like displays, automotive lighting, consumer-grade televisions, and AR glasses. In total, there are approximately 29 different products. These latest Micro LED products reflect the development trends within the Micro LED supply chain.

In the upstream segment, wafer manufacturers are focused on developing larger-sized Micro LED wafers, such as 8-inch and 12-inch wafers. Chip manufacturers are continuously improving the light emission efficiency of Micro LED. Equipment manufacturers are introducing devices that enable larger-scale production and testing of Micro LED.

In the midstream segment, an increasing number of manufacturers are paying attention to the applications of Micro LED micro displays. They have released multiple small-sized, high-resolution, and high-brightness monochrome or full-color micro displays and display modules to meet the application requirements of XR, smartwatches, and other head-mounted or wearable devices.

In the downstream and end-user segments, the abundant applications of Micro LED can be observed. These applications range from common large-sized display screen products to small-sized AR glasses, and even to automotive lighting and display applications, as well as flexible touch displays. Micro LED demonstrates its diverse range of applications as the ultimate display technology.

Furthermore, Micro LED applications extend beyond the aforementioned areas. Recent reports reveal that Apple plans to upgrade iPhone screen materials from OLED to Micro LED in the future, aiming to achieve higher brightness, lower power consumption, and superior contrast.

Eric Chiu, Vice President of TrendForce, predicts that looking ahead to 2026, with further maturation of Micro LED technology and costs, AR and automotive displays are expected to enter a fast track of development, driving the demand for Micro LED chips. Based on significant cost reductions, there is bold anticipation that by 2027, smartphones will also provide opportunities for Micro LED applications.

While the Micro LED industry boasts a rich variety of related products, Micro LED technology still faces several challenges. Therefore, continuous research efforts are underway, involving collaboration between academia and industry to gradually improve Micro LED performance. This year alone, approximately 17 Micro LED-related research projects have achieved notable results. These include advancements in red light efficiency, realization of full-color displays, improvement in massive transfer efficiency, and research on new structures and materials for Micro LED. The ultimate goal is to enhance Micro LED performance, production efficiency, and reduce application costs.

For more information on reports and market data from TrendForce’s Department of Display Research, please click here, or email Ms. Vivie Liu from the Sales Department at graceli@trendforce.com

(Photo credit: AUO)

DRAM Spot Market
Regarding recent developments in the spot market, there have been sporadic price upticks for low-priced DDR4 products. Meanwhile, prices of DDR5 products have kept falling due to the plentiful chip supply. Unlike the contract market, the spot market has been relatively unaffected by discussions about the possibility of price hikes, and spot trading as a whole is rather tepid. Furthermore, module houses were previously quite aggressive in stocking up, so they are now eager to sell as their inventories remain at a fairly high level. The average spot price of the mainstream chips (i.e., DDR4 1Gx8 2666MT/s) dropped by 0.13% from US$1.517 last week to US$1.515 this week.

NAND Flash Spot Market
Spot market demand, different from that of the contract market, remains relatively sluggish recently, where concluded prices are still dropping due to sufficient stocks, despite a slight increment in price inquiries. 512Gb TLC wafer spots have dropped by 0.28% this week, arriving at US$1.413.

NVIDIA’s robust financial report reveals the true impact of AI on the technology industry, particularly in the AI server supply chain. …

considering factors such as pricing and the absence of certain essential features, TrendForce anticipates a modest shipment volume of approximately 200,000 units for Apple Vision Pro in 2024. The market’s response will heavily depend on the subsequent introduction of consumer-oriented Apple Vision models and the ability of Apple to offer enticing everyday functionalities that will drive the rapid growth of the AR market as a whole.

VR/AR shipments are expected to drop to 7.45 million in 2023

In the meantime, TrendForce forecasts a global downturn in AR and VR device shipments for 2023, predicting a shipment total of roughly 7.45 million units—an 18.2% YoY decrease. VR devices are expected to shoulder the majority of this decline, with projected shipments hovering around 6.67 million units.

Conversely, shipments of AR devices are expected to remain stable, with projected shipments exceeding 780,000 units. While Apple’s latest offerings could stimulate some demand, the high price tags attached to these units continue to pose a significant barrier to broader market growth.

TrendForce posits that the trajectory of the VR and AR device market may encounter certain limitations between 2023 and 2025. While affordable VR devices could pique the interest of mainstream consumers, the prospect of minimal profitability might dissuade manufacturers from substantial investment in the VR market in the immediate future. A shift towards AR devices and their corresponding applications seems more probable.

Nevertheless, the expansion of the AR device market hinges on a broader acceptance of consumer applications. Therefore, TrendForce anticipates that a significant rise in the VR and AR market, potentially nearing a 40% annual increase in shipments, might not be realized until 2025.