TSMC’s fan-out (InFO) packaging process will no longer be exclusively used by Apple. According to a report from Commercial Times, it’s revealed that Google’s self-developed Tensor chips for their phones will switch to TSMC’s 3nm process next year and will also start using InFO packaging.

TSMC developed InFO packaging based on FOWLP (fan-out wafer-level packaging), which gained prominence after being adopted by the A10 processor in the iPhone 7 in 2016.

TSMC indicated that the current InFO_PoP technology has advanced to its ninth generation. Last year, it successfully certified 3nm chips, achieving higher efficiency and lower power consumption for mobile devices. The InFO_PoP technology, which features a backside redistribution layer (RDL), has entered mass production this year.

According to industry sources cited by the Commercial Times, Google will shift to TSMC for the Tensor G5 chips, which will be used in the Pixel 10 series next year. These chips will not only utilize the 3nm process but will also adopt integrated fan-out packaging.

This year’s Tensor G4 chips, set to be announced soon, use Samsung’s FOPLP (fan-out panel-level packaging). Although wafer-level packaging (WLP) is generally considered to have advantages over panel-level packaging (PLP), FOWLP still prevails at this stage due to yield and cost considerations.

TSMC has also begun developing FOPLP technology. Previously, per sources cited by a report from MoneyDJ, TSMC has officially formed a team, currently in the “Pathfinding” phase, and is planning to establish a mini line with a clear goal of advancing beyond traditional methods.

Although it is not expected to mature within the next three years, major customers like NVIDIA have partnered with foundry companies to develop new materials. One of TSMC’s major clients has already provided specifications for using glass materials.

Traditionally, chip advancements have been achieved through more advanced process nodes. However, new materials could enable the integration of more transistors on a single chip, achieving the same goal of scaling.

For instance, Intel plans to use glass substrates by 2030, potentially allowing a single chip to house one trillion transistors – 50 times the number in Apple’s A17 Pro processor. This suggests that glass substrates could become a significant milestone in chip development.

Another sources cited by Commercial Times have also indicated that glass substrates are part of the medium- to long-term technological roadmap. They can address challenges in large-size, high-density interconnect substrate development.

Currently, this technology is in the early stages of research and development. Its impact on ABF (Ajinomoto Build-up Film) substrates is expected to become significant in the second half of 2027 or later.

Read more

• [News] TSMC Pushes for FOPLP Mass Production by 2027, Reportedly Eyeing on Innolux’s Plant
• [News] TSMC Reportedly Forms a Team on FOPLP Development, with Mini Line on the Road

(Photo credit: TSMC)

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)

Apple’s latest technical document reveals that the two main AI models behind Apple Intelligence are trained using Google’s Tensor Processing Units (TPUs) instead of NVIDIA GPUs. According to a report from Commercial Times, this suggests that the demand for NVIDIA chips has outstripped supply, prompting some tech giants to seek alternatives.

Apple first introduced an AI technical document in June, briefly stating that its AI models were trained using TPUs. The latest technical document, which spans 47 pages, provides a detailed explanation of how Apple’s foundational models (AFM) and AFM servers are trained in Cloud TPU Clusters. This indicates that Apple rents cloud servers from cloud service providers to train its AI models.

In the document, Apple stated: “This system allows us to train the AFM models efficiently and scalably, including AFM-on-device, AFM-server, and larger models.”

Apple further mentioned that the on-device AFM models for iPhones and iPads are trained using a total of 2,048 TPUv5p chips, which are currently the most advanced TPU chips on the market. The AFM servers are trained using a total of 8,192 TPUv4 chips.

Google initially launched TPUs in 2015 for internal training use only and started offering TPU rental services to external clients in 2017. These TPUs are currently the most mature custom chips used for AI training. According to Google’s official website, the rental cost of their most advanced TPUs is approximately USD 2 per hour based on a three-year contract.

Though NVIDIA’s GPUs are currently dominating the high-end AI chip market, the enormous number of chips required for AI model training has led to a severe shortage. This is because major tech companies like OpenAI, Microsoft, Google, Meta, Oracle, and Tesla all use NVIDIA chips to develop their AI technologies.

Since the rise of ChatGPT at the end of 2022, which spurred the generative AI market, Silicon Valley tech giants have been racing to invest in AI research and development. In contrast, Apple has lagged behind its competitors and now has to intensify its efforts to bolster Apple Intelligence. On July 29th, Apple released a preview version of Apple Intelligence for certain devices.

Read more

• [News] NVIDIA’s H200 Order Delivered from Q3, Boosting Server Supply Chain with Strong Demand
• [News] US Government Reportedly Investigating Microsoft, NVIDIA, and OpenAI for AI Industry Monopolization

(Photo credit: NVIDIA)

The iPhone SE series is Apple’s budget-friendly option, traditionally sourcing screens exclusively from the Chinese manufacturer BOE. However, a report from Korean media outlet The Elec indicated that Apple is expected to use LG Display (LGD) as the second supplier for the OLED screens of next year’s iPhone SE 4, while BOE remains the primary supplier for the iPhone SE 4 screens.

The iPhone SE series typically uses parts from older models but is unique in pairing them with the latest processors, ensuring superior performance compared to competitors in the same price range. Notably, Apple releases the iPhone SE series in emerging markets like India.

Per the same report from The Elec, the iPhone SE 4 is expected to use the OLED display from the iPhone 13, making it easier for display manufacturers to produce.

Apple has historically supported BOE as an iPhone OLED screen supplier to reduce the influence of South Korean companies like Samsung Display and LGD. However, BOE is said to have faced difficulties in securing large iPhone orders due to challenges in meeting Apple’s perforated screen technology requirements, as seen with the iPhone 15.

Moreover, BOE is reportedly encountering challenges in producing OLED screens for the iPhone 16 as well, resulting in lower output compared to its Korean competitors.

Earlier in May this year, both LG Display and Samsung Display secured orders for OLED panels for Apple’s iPhone 16 Pro, according to a previous report from “The Elec.” Subsequently, LG Display also has acquired orders for iPhone 16 Pro Max panels, which could be the first time ever for LG Display to be ahead of Samsung display.

Read more

• [News] Novatek’s Supply Advantage Fades, as Korean Competitor Reportedly Secures iPhone 16 Order
• [News] Taiwanese IC Design Company Novatek Reportedly Secured a Spot in iPhone 16 via Collaboration with LGD

(Photo credit: Apple)

According to a report from Commercial Times, TSMC’s advanced processes continue to experience strong demand, with major tech companies such as Apple, Qualcomm, NVIDIA, and AMD nearly fully booking TSMC’s 3nm capacity, while the order visibility extends into 2025.

As per the same report, the supply chain of the foundry giant’s 3nm process is also expected to continue the momentum, benefiting companies like Gudeng Precision Industrial (Gudeng), KINIK Company (KINIK), Solar Applied Materials Technology Corp (Solar Applied Materials), YEEDEX and GreenFiltec.

Industry sources cited by the same report indicate that TSMC’s wafer prices for advanced process are expected to see double-digit percentage increases by 2025. Chairman C.C. Wei recently mentioned that TSMC’s wafer pricing is strategic, as values regarding products may differ. The progress in pricing negotiations with customers is “so far so good,” and TSMC is confident about achieving a balance between price and capacity.

A report from Wccftech also suggested that Apple’s upcoming A18 Pro SoC and NVIDIA’s next-generation “Rubin” architecture will both use the 3nm process. Following the widespread adoption of TSMC’s 3nm process, the 3nm supply chain has attracted significant market attention, with expectations for operational boosts in the coming year.

In the semiconductor industry, per the sources cited by Commercial Times, Gudeng has captured about 70% of the market share for EUV POD. As EUV lithography has become a standard in advanced processes, TSMC has been adopting EUV technology starting from the 7nm process node and increasing its usage in later generations. The number of EUV layers used per wafer has been growing, which bodes well for Gudeng as it continues to benefit from this trend.

In the semiconductor sputtering target materials sector, TSMC has traditionally relied on products from international suppliers. However, with a push towards domestic equipment and consumables, Solar Applied Materials entered TSMC’s advanced 7nm process supply chain last year and has now also become a supplier for the 3nm process. Solar Applied Materials’ revenue from semiconductor targets was 4% last year and is expected to reach 10% this year, with a target of 20% by 2026, according to the report.

YEEDEX specializes in supplying components for the front-end processes, such as precision vaccum chucks for EUV equipment. As the industry moves to 3nm processes, wafer thinness increases, making precision vaccum chucks crucial for improving yield rates.

GreenFiltec specializes in extractable chemical filters and AMC Micro Pollution Control services. Through innovative material research and development for filters, GreenFiltec prevents invisible gas molecules from settling in the air. These filters are key consumables for cost control and yield improvement. In the domestic advanced process market, GreenFiltec has captured over 50% of the market share, and its operations are expected to benefit similarly next year, the report noted.

KINIK produces reclaimed wafers and diamond discs. Its high-spec diamond disc products have gained continuous and expanded adoption from major clients, achieving over 70% market share in the 3nm segment. The sources cited by Commercial Times expect that as major clients’ 3nm production capacity reaches full utilization, KINIK’s performance will significantly improve starting next year.

Read more

• [News] AMD Reportedly Eyes Mass Production in 2025 for Zen 6 Architecture with TSMC’s N3E Process
• [News] Apple Not Adopting TSMC 2nm for iPhone 17? A19 Pro Chip Rumored to Use N3P Process

(Photo credit: TSMC)