A battle between two tech giants has been launched, as major IP supplier Arm Holdings is terminating its architectural license agreement with Qualcomm, the world’s top mobile chipmaker. The move may be regarded as a counter measure by Arm to the emerging trend of custom silicon designs, as companies like Apple, Qualcomm and MediaTek take sides.

According to a report by The Register, Arm has been the leading architecture provider for mobile chips since modern smartphones emerged, with its Cortex processors powering nearly every mobile device. However, as Apple and Qualcomm move toward custom silicon designs, Arm’s dominance seems increasingly under pressure.

Qualcomm’s Acquisition of Nuvia Reportedly Sidesteps Royalty Increase

It is worth noting that the recent lawsuit between Arm and Qualcomm may arise from technologies acquired by Qualcomm from Nuvia, a startup founded by former Apple chip engineers, which Qualcomm purchased for USD 1.4 billion in 2021.

According an industry insider familiar with the situation, originally, Arm charged royalties based on chip price, typically around 5% to 7% of the price tag. This structure reportedly applied to customers directly using Arm’s CPU IP or those licensing the instruction set/architecture, with the instruction set licensing generally being slightly lower.

Nevertheless, around two years ago, Arm attempted to significantly increase royalties by implementing a new licensing agreement for its highest-tier mobile CPU IP, changing the structure from 7% to a flat fee of USD 20 per chip, which would be quite a boon for the company, the source explained.

Qualcomm, by acquiring Nuvia, a company focused on Arm server and PC CPUs with an instruction set architecture licensed by the world’s leading semiconductor IP supplier, allows it to leverage this team’s CPU base for high-end mobile applications, therefore sidestepping Arm’s strategy (potentially paying only 5% of the chip price under their agreement), the source noted.

Arm’s Pre-built Cortex Designs Face Challenges from Custom Silicon Designs

To put things in context, Qualcomm’s acquisition of Nuvia indicates its efforts to develop custom Snapdragon cores and reduce dependence on Arm’s pre-built Cortex designs, which is now the main approach adopted by several tech giants.

For instance, according to the report by The Register, the Oryon CPU cores featured in Qualcomm’s latest Snapdragon X Elite are based on Arm’s v8.7-A ISA, which are similar to earlier designs prior to Nuvia’s integration into Qualcomm However, this strategy allows Qualcomm to create cores tailored to its specific requirements, making it capable of competing directly with Apple’s M-series and challenge Intel and AMD in the notebook sector, the report notes.

On the other hand, Apple is leading the way in custom chips, as it has shifted from the traditional licensing model to create proprietary designs. Earlier in May, Apple announced M4, which is built using second-generation 3-nm technology. A report by Wccftech also suggests that the Cupertino tech giant is preparing for the next-gen chipset, M5, which is said to be launched next year.

According to the analysis by The Register, Apple’s strategy for custom silicon stands in contrast to Arm’s, which offers a broad ecosystem based on its Instruction Set Architecture (ISA). In contrast, Apple manages both its hardware and software ecosystems using its signature iEverything approach.

Nevertheless, it would be hasty to underestimate Arm’s impact. The Register highlights that MediaTek recently revealed that it is maintaining the Armv9 architecture for its new Dimensity 9400 chips, indicating that Arm’s Cortex-X4 and A720 cores are still competitive.

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• [News] Arm Holdings Reportedly Cancels Qualcomm Chip Design License
  
• [News] Taiwanese Chipmaker MediaTek Likely to Benefit Most from Arm-Qualcomm Licensing Dispute

(Photo credit: Qualcomm)

Apple CEO Tim Cook visited China for the second time this year. According to a report from Commercial Times, his visit may be aimed at boosting Apple’s business in the region, particularly given that Apple Intelligence currently does not support the China version of the new iPhone 16.

A report from South China Morning Post noted that Chinese Android smartphone vendors are already incorporating new AI features into their devices. On the other hand, Apple’s major rival in smartphones, Samsung, has also found an ally in the local market, as the report pointed out that earlier this year, Baidu’s AI model would be integrated into Samsung’s latest flagship smartphone series, the Galaxy S24.

The report also mentioned that during an earnings call in August, Cook stated that he was advocating the launch of Apple Intelligence in China, aiming to provide AI services to all Apple users.

According to Commercial Times, citing Cook’s official account on the social media platform Weibo, during his trip, Cook met with Chinese university students to discuss how Apple products can support sustainable farming practices.

Notably, according to a report from Reuters, Cook also met with Jin Zhuanglong, China’s Minister of Industry and Information Technology, on Wednesday in Beijing.

The report from Commercial Times also noted that this is Cook’s second visit to China this year. During his trip in March, he reaffirmed the company’s long-term commitment to the Chinese market. On that visit, Cook visited Apple’s new store in Shanghai, met with China’s Minister of Commerce, Wang Wentao, and connected with several major Chinese suppliers.

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• [News] Insiders Reportedly Claim Apple to be Two Years behind in AI Development
• [News] A Comparison between Apple iPhone 16 and Huawei Mate XT

(Photo credit: Tim Cook’s Weibo)

Apple introduced the Apple Intelligence feature at WWDC24 back in June. However, according to Mark Gurman from Bloomberg, some Apple employees believe the company is two years behind its competitors in AI development.

The Apple Intelligence includes several features, such as AI notification summaries, intelligent prioritization for important alerts, a new Siri with personal context, Image Playground, Genmoji, and more.

According to a report from 9to5Mac, one of the main challenges facing Apple Intelligence is that it mostly depends on models that can run on-device, which also means that Apple Intelligence has quite high requirements for device.

To run Apple Intelligence, users will need a device equipped with at least an A17 or M1 chipset, and it must have a minimum of 8 GB of memory to support the personal intelligence system, as highlighted by 9to5Mac.

The report from 9to5Mac noted that since the models primarily operate on-device, the volume of information they can process is inherently limited. This is also why Apple has chosen to integrate Siri with ChatGPT.

According to the announcement by OpenAI, Apple will support GPT-4o across iOS, iPadOS, and macOS. GPT-4o will be integrated into Siri and Writing Tools, with the expectation that this integration will help reduce the knowledge gap.

Regarding the knowledge gap, according to Mark Gurman from Bloomberg, Apple’s internal research shows that ChatGPT is about 25% more accurate than Siri and can answer about 30% more questions, leading some Apple employees to believe the company is two years behind its competitors in AI development.

Nonetheless, Gurman believes that Apple still has the potential to catch up, as they can often successfully catch up with competitors in areas where they seem to be lagging behind, demonstrated by its experience with Apple Maps.

Furthermore, Gurman also pointed out that Apple has another advantage in its efforts to catch up: the ability to deploy features across a vast array of devices. Apple can quickly equip its current products with the technology required to support new software. We can expect to see this again soon with the rollout of the M4 Macs, which will accelerate Apple’s AI tasks, as indicated by Gurman.

According to Gurman, Apple Intelligence will be available on nearly every Apple device with a screen by 2026. The iPhone SE is set to receive this feature in March, along with the A18 chip, while the entry-level iPad is expected to be updated later in 2025.

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• [News] Apple Intelligence Is Expected to Arrive on October 28th with the Release of iOS 18.1
• [News] iPhone 16 “Supercycle” in Doubt? Concerns Rise Over Slow Rollout with its AI Platform

(Photo credit: Apple)

Ahead of TSMC’s upcoming third-quarter earnings call this Thursday, a report by the Commercial Times gives a heads-up on the foundry giant’s outlook of 3nm orders next year. With NVIDIA and AMD ramping up their next-gen AI accelerators, combined with the strong demand from smartphone chips, orders for TSMC’s 3nm node are set to see a surge in 2025, the report indicates.

According to analysts cited by the report, most flagship smartphone chips are expected to be manufactured with 3nm next year. For instance, Apple’s A19 Pro is said to adopt TSMC’s N3P process, while the Android phones are likely to follow suit.

In terms of the demand from AI accelerators, the report notes that AMD’s MI350 series will likely be manufactured with the 3nm node, which is going to benefit TSMC.

It is worth noting that according to another report by Commercial Times, at Advancing AI 2024 last week, AMD CEO Lisa Su highlighted the company’s close partnership with TSMC, saying that she would be glad to see the CHIPS Act bringing more manufacturing lines back to the U.S.

Sources cited by Commercial Times suggest that for now, AMD has no plans to collaborate with chip makers other than TSMC, and that the company is currently conducting a qualification assessment for chip production at TSMC’s Arizona fab (Fab 21).

On the other hand, Commercial Times indicates that NVIDIA’s orders on TSMC will likely see an increase next year, which would further tighten the foundry giant’s capacity in 3nm and 5nm. NVIDIA’s R-series GPUs are reportedly to be manufactured with TSMC’s 3nm as well, the report notes, but it would not be released until 2026.

TSMC is expected to see strong 3nm demands from other tech giants in 2025 as well. According to the report, Intel is said to outsource most of its Lunar Lake chips to TSMC, while the AI PC chip MediaTek co-develops with NVIDIA is also rumored to be built using the 3nm process. The report states that this chip is expected to debut in the second quarter of next year and enter mass production in the third quarter.

Sources cited by the report note that as clients turn to place orders on 3nm for their latest AI accelerators, foundry capacity will further be strained. Notably, TSMC’s CoWoS packaging reportedly allows interposers reaching 3.3 times for its maximum reticle size to manufacture chips such as NVIDIA’s B200, AMD’s MI300, or Intel’s Gaudi 3, with the number of chips produced on per interposer becoming fewer.

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• [News] Intel Shifts to TSMC for Chip Production: A Looming Threat for AMD?
• [News] NVIDIA and MediaTek Reportedly Team up on 3nm AI PC Processors, with Tape-outs Expected This Month

(Photo credit: TSMC)

While Apple launched iPhone 16 on September 10^th, the smartphone giant has not set up a specific date for the release of Apple Intelligence. Now, according to the latest report by Bloomberg, iPhone buyers would have to wait a few more weeks, as Apple Intelligence is expected to arrive on October 28^th.

The long-awaited function will be arriving then as part of the iOS 18.1 operating system, Bloomberg suggests.

The market had previously anticipated that the AI platform would be released in mid-October, according to another report by MoneyDJ. However, as Apple would like to take a more cautious approach to ensure that all major issues have been addressed, and that the increased traffic on its AI cloud servers can be adequately supported, the company has postponed the schedule a bit.

According to a previous report by Reuters, Apple Intelligence will first launch for U.S. English users, with other localized English versions set to follow in December. Additional language versions, including Chinese, French, Japanese, and Spanish, are anticipated for next year. However, it is worth noting that Apple has not yet announced an AI partner in China for the iPhone 16 series.

According to Apple’s official website, Apple Intelligence will only support devices with the built-in M1 or newer processors (such as iPad Air, iPad Pro, and Mac), as well as the 2023 iPhone 15 Pro Max and iPhone 15 Pro, but not the entry-level iPhone 15. Additionally, it is expected to be compatible with the upcoming iPhone SE, according to The Verge.

For more details, the report by Bloomberg notes that the initial release of Apple Intelligence will feature notification summaries, with later updates such as iOS 18.2 set to introduce ChatGPT integration and support for Genmoji custom emojis.

In March next year, iOS 18.4 will bring other enhancements to the Siri digital assistant, allowing it to manage applications with greater precision and utilize personal information to respond to inquiries, the report notes. Moreover, additional features following iOS 18.1 may include automated email filing in the Mail app and an Image Playground app for creating custom images, according to Bloomberg.

Read more

• [News] iPhone 16 “Supercycle” in Doubt? Concerns Rise Over Slow Rollout with its AI Platform
• [News] Apple Officially Debuts iPhone 16 with AI Features, but Yet to Announce an AI partner in China

(Photo credit: Apple)