Apple is reportedly shifting its mixed reality (MR) device strategy by abandoning the development of its existing high-end Vision Pro headset in favor of launching an affordable MR device expected to debut next year. According to a report from Economic Daily News, it’s rumored that Foxconn is likely to replace Luxshare as the manufacturer for Apple’s affordable MR device, although Foxconn typically refrains from commenting on order specifics and client relationships.

Alongside this move, Apple reportedly plans to incorporate AI capabilities into the product, which is anticipated to significantly boost sales of the affordable MR device. Per the sources cited by the same report, they are optimistic that companies like Genius Electronic Optical (GSEO) and GIS Industries are poised to benefit from the opportunities.

According to a report from tech media outlet The Information citing sources, Apple initially planned to release two versions of the Vision device, akin to the standard and Pro versions of the iPhone. However, Apple is said to have informed at least one supplier to halt the development of the next-generation high-end Vision Pro headset.

Recently, Apple has planned to launch the USD 3,500 Vision Pro in eight new markets, including China and Japan. However, The Information, citing a source from a supplier, reported that after receiving Apple’s forecast of weakened demand for the Vision Pro by August, the supplier cut production by half in May.

The sole supplier, which has no competitors, produced approximately 460,000 Vision Pro components in the first four months of this year and plans to produce an additional 100,000 components from May to August. This suggests that Apple expects to produce at most around 500,000 units this year, with no significant production increase before August.

The Information revealed that Apple started developing a more affordable version of the Vision product in 2022, internally codenamed “N109.” According to the report, Apple is also trying to reduce the weight of the budget version by at least one-third compared to the Vision Pro. It is further reported that Foxconn will replace Luxshare as the manufacturer for Apple’s affordable MR device.

Industry sources cited by the same report indicated that Apple has already announced Apple Intelligence, confirming that AI applications will be integrated into all future devices. The next generation of MR devices, featuring more AI functions and applications along with a more affordable price, is expected to boost demand and significantly increase shipment volumes, benefiting Foxconn.

Other Taiwanese collaborators are also poised to benefit. GSEO has gradually been obtaining orders from the supply chains of Sony, Meta, and Apple, providing lenses and components for VR/MR headsets. GSEO expects VR-related applications to account for 20-30% of its revenue this year.

GIS plays a crucial role in the Vision Pro supply chain, handling the most technically challenging lens bonding tasks. Its production base is located in Chengdu, China, and it is generally anticipated to be part of the supply chain for Apple’s affordable MR headset as well.

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(Photo credit: Apple)

Novatek, a major driver IC manufacturer in Taiwan, has made a significant breakthrough by securing a spot in the iPhone supply chain. According to a report from Economic Daily News, Novatek’s OLED driver IC is reportedly set to be used in Apple’s upcoming iPhone 16 series, which would be the first time a Taiwanese IC design company has secured a key chip order for the iPhone. Reportedly, the order is expected to boost NovaTek’s OLED driver IC shipments in the second half of the year by 50% compared to the first half.

As the new iPhone 16 series will debut in September, reports indicate that the model will feature the latest A18 processor, produced using TSMC’s N3P process, with mass shipments expected in the third quarter.

The iPhone 16 series will continue to equip OLED panels, but with expected pixel upgrades, which will also enhance the specifications of the OLED driver IC. Novatek will supply the OLED driver IC for the new iPhone, marking its first entry into the iPhone supply chain and the first time a Taiwanese IC design company has secured a key chip order for the iPhone, the report noted.

Novatek typically does not comment on orders or customers.

Previously, Novatek’s driver ICs have been adopted by Apple’s iPad for several years, but unable to secure an iPhone order. This breakthrough comes as Novatek penetrates the iPhone 16 supply chain via the collaboration with LG Display (LGD) of South Korea, combining with LGD’s OLED panels for shipment.

According to the industry sources cited by the same report, Novatek will begin delivering the OLED driver ICs to LGD in July. These ICs will be assembled into panel modules in the third quarter and then sent to OEMs for new device production, aligning with the AI iPhone launch.

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(Photo credit: Novatek)

With the United States expected to further restrict China from acquiring advanced GAA (Gate-All-Around) chip architecture capabilities, coupled with reports of poor yield rates in Samsung’s 3nm GAA generation, the semiconductor industry sources cited in a report from Commercial Times state that TSMC’s 3nm FinFET process is enjoying dominance. Reportedly, due to the high demand and limited supply capacity, upstream IC design companies are beginning to report price hikes.

Seven global tech giants, including NVIDIA, AMD, Intel, Qualcomm, MediaTek, Apple, and Google, are set to gradually adopt TSMC’s 3nm process. As per the sources cited in the report from Commercial Times, Qualcomm’s Snapdragon 8 Gen 4, built using TSMC’s N3E process, has seen a price increase of 25% compared to the previous generation, potentially triggering a subsequent trend of price hikes.

Samsung was the first to commence mass production of 3nm chips using the GAA process in June 2022. However, the first-generation N3 node, SF3E, did not achieve significant success and was initially limited to cryptocurrency applications. Subsequently, the yield rate for its own Exynos 2500 chip also fell short of expectations.

Additionally, Google’s Tensor processors, which are manufactured by Samsung, still use Samsung’s 4nm process in their fourth generation. However, it is said in the report that the fifth generation will switch to TSMC’s 3nm process.

In the second half of the year, numerous AI products will be launched in the consumer market. Among the three major players in the mobile chip market, Qualcomm’s Snapdragon 8 Gen 4, MediaTek’s Dimensity 9400, and Apple’s A18 and M4 series will all be built using TSMC’s N3 family. Moreover, Google’s Tensor G5 will also compete in the market.

It is rumored that Qualcomm’s Snapdragon 8 Gen 4 has already initiated the first wave of price increases. The industry sources cited in the report claim that the procurement cost of mobile chips was already high, with last year’s flagship 8 Gen 3 costing around USD 200. This year’s flagship chip might exceed USD 250. Whether competitors will follow suit remains to be seen.

However, industry sources cited by the report also point out that the price increase is within a reasonable range. Compared to the 5nm process, the cost per wafer for the 3nm process is about 25% higher. This increase does not yet take into account overall wafer quantities and design architecture factors.

TSMC President C.C. Wei has also revealed that TSMC products are highly power-efficient and have better yield rates. When considering the cost per chip, TSMC is the most cost-effective.

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(Photo credit: TSMC)

According to sources cited in a report from Reuters, it’s said that IC design giant MediaTek is developing an ARM-based PC chip that will run Microsoft’s Windows operating system.

Last month, Microsoft unveiled a new generation of laptops featuring ARM-based chips, which provide sufficient computing power to run AI applications. Its executives stated that this represents the future trend of consumer computing. MediaTek’s latest development of an ARM-based PC chip is said to be geared toward these types of laptops.

The same report indicates that Microsoft’s move plans to take aim at Apple, which has been using ARM-based chips in its Mac computers for about four years. Microsoft’s decision to optimize Windows using ARM-based chips could further pose a threat to Intel’s long-standing dominance in the PC market.

Regarding this matter, both MediaTek and Microsoft declined to comment.

Reportedly, according to industry sources, MediaTek’s PC chip is scheduled to launch by the end of next year, coinciding with the expiration of Qualcomm’s exclusive agreement to supply chips for laptops. MediaTek’s chip, based on ARM’s existing designs, will significantly accelerate the development process by less design work.

It is currently unclear whether Microsoft has approved MediaTek’s PC chip for supporting the Copilot+ feature in Windows programs.

ARM executives have stated that one of their clients used ready-made components to complete a chip design in about nine months, although this client was not MediaTek. For experienced chip designers, creating and testing advanced chips typically takes more than a year, depending on the complexity.

In the latest press release from TrendForce, MediaTek’s strategy in the PC domain is also highlighted. Reportedly, the Arm chip co-developed by MediaTek and NVIDIA, with adoption of Wi-Fi 7 and 5G, is also slated to occupy a spot in the AI NB market since 2Q25, and initiate a new wave of technical innovation after 2025. According to TrendForce’s forecast, Arm chips are likely to surpass 20% in market penetration at an accelerated velocity in 2025.

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(Photo credit: MediaTek)

The upcoming iPhone 16 series from Apple is set to debut in the latter half of the year, and according to a report from Korean media outlet “The Elec,” LG Display, a major panel manufacturer in South Korea, has secured OLED panel orders from Apple for the iPhone 16 Pro Max model, ahead of its rival Samsung.

Earlier in May, both LG Display and Samsung Display secured orders for OLED panels for Apple’s iPhone 16 Pro, according to the report. 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. 

Reports indicate that LG Display failed to secure the initial batch of orders for OLED panels for the iPhone 15 Pro last year, with the majority of orders going to its competitor Samsung Display. This bolstered Samsung Display’s profitability significantly. However, this year, LG Display has finally regained its footing by securing orders for both the iPhone 16 Pro and iPhone 16 Pro Max models, marking a turnaround in its fortunes.

However, Samsung Display continues to firmly hold orders for OLED panels for the iPhone 16 and iPhone 16 Plus models, while LG Display is responsible only for supplying OLED panels for the higher-end positioned iPhone 16 Pro and iPhone 16 Pro Max models.

Previous revelations from South Korean source yeux1122 also indicated that LG Display holds a higher share than Samsung Display in the supply of OLED screens for Apple’s new iPad Pro.

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(Photo credit: Apple)