Following NVIDIA’s launch of the new computing platform GB200, as per a report from Commerical Times, Taiwanese supply chain players including Quanta, Pegatron, Wiwynn, Wistron, Gigabyte, and Foxconn’s subsidiary Ingrasys have showcased their solutions and related cooling technologies based on the GB200 at the latest GTC conference, aiming to capture opportunities in the next-generation AI server market.

Quanta Cloud Technology (QCT), a subsidiary of Quanta Computer, demonstrated its systems and AI applications based on the NVIDIA MGX architecture, announcing support for the upcoming NVIDIA GB200 superchip and NVIDIA GB200 NVL72.

QCT showcased their NVIDIA MGX architecture systems, featuring the NVIDIA GH200 chip, employing a modular reference design. System manufacturers can utilize the NVIDIA MGX architecture to tailor models suitable for applications like generative AI, high-performance computing (HPC), and edge deployments.

Pegatron, on the other hand, has become one of NVIDIA’s global partners in advanced GPU computing technology, particularly with the latest NVIDIA GB200 chip. Reportedly, Pegatron is actively developing the GB200 NVL36, designed as a multi-node, liquid-cooled, rack-level platform dedicated to processing compute-intensive workloads. Equipped with the NVIDIA BlueField-3 data processing unit, it enables network acceleration in ultra-scale AI cloud environments and fulfills various GPU computing functionalities.

GIGABYTE, a key supplier of high-end AI GPU servers for NVIDIA last year, showcased their latest offerings at this year’s GTC exhibition. Their subsidiary, GIGABYTE Technology, unveiled the GIGABYTE XH23-VG0, a 2U server featuring the NVIDIA H100 GPU and GH200 architecture, capable of transferring data at speeds of up to 900GB per second. Additionally, they announced the readiness of their product line for the next-generation Blackwell platform, including HGX boards, superchips, and PCIe expansion cards, which will be released gradually over the coming months.

Meanwhile, Wiwynn, included in the first wave of suppliers for the NVIDIA GB200 NVL72 system, showcased its latest AI server cabinet solution based on the NVIDIA GB200 NVL72 at the GTC exhibition. They also presented their newest comprehensive liquid-cooled management system, the UMS100.

Ingrasys also showcased a range of innovations at the exhibition, including NVIDIA MGX architecture servers and the GB200 NVL72 solution. They also demonstrated advanced liquid cooling technologies such as the liquid-to-gas Sidecar technology and liquid-to-liquid Cooling Distribution Unit (CDU).

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• [News] TSMC’s 4nm Process Powers NVIDIA’s Blackwell Architecture GPU, AI Performance Surpasses Previous Generations by Multiples

(Photo credit: NVIDIA)

The battle for Apple’s iPhone manufacturing orders has entered a new phase this year. According to a report from Economic Daily News, while Foxconn still appears poised to dominate, with expectations to assemble over half of the iPhone 16 series, maintaining its lead; Luxshare, a key supplier in the supply chain, has swiftly risen to challenge, surpassing Pegatron to become the second-largest iPhone manufacturer.

With Luxshare’s share continuing to rise this year and the emergence of India’s Tata Group as a new contender, it is expected that the competition for iPhone manufacturing orders this year will be characterized by one leader, two strong contenders, and one new challenger.

In 2023, Apple launched the iPhone 15 series, with over 60% of the assembly orders handled by Foxconn, while Luxshare’s order share continued to rise, surpassing Pegatron last year to become the second-largest iPhone assembler. With Pegatron transferring the lead of its Kunshan factory in China to Luxshare at the end of last year, Luxshare’s order share is expected to continue increasing.

To retain its crucial Chinese market and further reduce costs, per a report from Economic Daily News, Apple has allowed Luxshare to continuously increase its share of Apple orders in recent years. Luxshare’s assembly products is anticipated to cover iPhone, Apple Watch, and the recently launched Vision Pro—a headset exclusively manufactured by Luxshare. Luxshare has then become a prominent supplier within the Apple supply chain in China.

The report further indicated that this year’s iPhone 16 series orders are expected to be predominantly secured by Foxconn Group, accounting for over 50% of the share. Luxshare ranks second, while Pegatron’s share is expected to decrease to third place. The proportion of Tata Group’s new device orders remains to be seen.

As Luxshare continues to expand its presence in the iPhone assembly domain, Tata Group, after taking over Wistron’s iPhone assembly plant in India, continues to improve overall production efficiency. By leveraging the advantages of being a local manufacturer in India, Luxshare’s presence in the iPhone assembly supply chain is expected to continue to rise in the future.

The report also mentioned that Tata Group is in negotiations with Pegatron to jointly establish an iPhone assembly plant in Hosur city, Tamil Nadu, in southern India. This would be marked as Tata Group’s first venture into this business through a joint venture.

Reportedly, it is suggested that Tata will hold the majority stake in the joint venture, while Pegatron will provide technical and engineering support for the Hosur city plant to help accelerate the construction process. Pegatron declined to comment on this matter.

In the past, Wistron Group’s factory in Karnataka, India, primarily produced older models of the iPhone. This factory has been sold to Tata Group. Market observers note that if the joint venture between Pegatron and Tata Group in Hosur city materializes, it will help Tata Group to expedite its entry into the production of new iPhone models.

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• [News] Tata Group Plans to Build New iPhone Assembly Plant in India, Aligning with Apple’s Localization Strategy for the Supply Chain
• [News] Luxshare Acquires Leadership of Pegatron’s Kunshan Plant, Challenging Foxconn’s Dominance on iPhone Assembly?

(Photo credit: Apple)

India’s Tata Group is reportedly in discussions with Taiwanese electronics manufacturer Pegatron to establish a joint venture, with the intention of co-managing the Apple iPhone assembly plant currently under construction in the southern state of Tamil Nadu. The partnership is anticipated to hasten the growth of iPhone production capacity in India.

According to Reuters citing industry sources, Tata, having acquired an iPhone assembly plant in the southern state of Karnataka from the Taiwanese company Wistron in 2023, has officially become part of the iPhone supply chain in India.

On the other hand, the new facility in the city of Hosur, Tamil Nadu, will be Tata’s second iPhone assembly plant in India, featuring 20 production lines, as disclosed by sources cited by Reuters.

Amid rumors that Tata Group in India is deeply engaged in discussions with Pegatron to form a strategic alliance and establish a joint venture, Pegatron did not to respond to market speculations.

Currently, approximately 10% of Apple’s iPhone production capacity in India comes from Pegatron, with the vast majority of capacity originating from Foxconn’s iPhone assembly plant located in Karnataka.

Furthermore, Foxconn has the highest share in Apple’s current new iPhone assembly. Among the four iPhone 15 series models, only certain models like iPhone15 and iPhone15 plus are produced by Tata Group in India.

An industry source has reportedly stated, “Tata cannot build everything from scratch,” He indicated that after Tata establishes a joint venture with Taiwanese firm Pegatron, Pegatron will provide technical and engineering support.

In recent years, Pegatron has been consistently expanding its global footprint, with expansions ongoing in Taiwan, Mexico, Indonesia, India, Vietnam, and other locations.

Regarding its operations in India, Pegatron announced in late October 2023 that it had invested approximately NTD 300 million (roughly USD 9.56 million) to secure leasing rights for factory premises in Tamil Nadu.

In January of this year, the Indian subsidiary announced signing a construction general contracting project to commence electromechanical engineering construction for a new plant, totaling approximately NTD 510 million (roughly USD 16.26 million). According to industry sources, Pegatron’s Indian facilities primarily focus on smartphone production at present.

(Photo credit: Apple)

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.

Due to the explosion of the COVID-19 pandemic in China, Shanghai has adopted a rolling lockdown policy since March and Kunshan City, a major production hub for the electronics industry near Shanghai, has also felt the impact. According to TrendForce, limited manpower and logistics and suspended transportation options mean neighboring OEMs and ODMs can only rely on onsite inventory to barely meet the needs of production lines, further exacerbating component mismatches. Concurrently, a short-term surge in finished product shipments and demand for material replenishment after the various lockdowns are lifted may gridlock customs authorities, with delivery delays potentially lasting until the end of April before there is any chance for improvement.

TrendForce further indicates, starting from 4Q21, demand for consumer specification products, which account for the bulk of products sold by MLCC suppliers in Taiwan, Korea and China, weakened as customers continue to adjust their inventories. Although ODMs currently predict the demand for consumer specification MLCC will recover month by month in 2Q22, emergency lockdowns caused by the pandemic are bound to impose delays on logistics. Likewise, OEMs’ supply of key direct buy components will also be interrupted due to the Shanghai lockdown.  Shortages of CPU, battery module, and panel materials will impact production lines because materials cannot be delivered to relevant factory warehouses, exacerbating ODM component mismatch issues. On the other hand, the focus of downstream branded customers remains on low visibility and weak demand in the 2Q22 end market.

MCLL supplier production centers in China including those located in Tianjin, Suzhou, Wuxi, and Guangdong, have yet to be locked down but inter-provincial logistics and transportation have clearly felt the escalation of inspection and supervision since the end of March, resulting in prolonged transportation timetables. However, the biggest problem for MLCC suppliers at this stage is they cannot deliver materials to Shanghai and Kunshan. There are a number of large ODM plants at these two locations, such as Quanta Shanghai Manufacture City in the Songjiang District of Shanghai and the Compal, Wistron, and Pegatron campuses in Kunshan. At present, ODMs’ average inventory level for consumer specification products sits at 3 to 4 weeks, which is sufficient to meet the needs of short-term production. However, stocks of certain high-voltage automotive MLCC of 250V or higher specifications and high-end server MLCC size 0805/1206/1210 items may be in danger of depletion.

Looking to 2Q22, the lockdowns of Shenzhen, Dongguan, and Shanghai that began in March have hobbled China’s manufacturing industry and sent it into a period of contraction. In addition, the Russian-Ukrainian war and rising inflation continue to slow demand growth for mainstream consumer electronics, potentially risking recession. With so many unfavorable factors, ODMs must still observe an easing of component mismatching before further considering MLCC stocking momentum after restrictions are lifted. If the pandemic in China cannot be effectively brought under control in the short term, overall ODM inventories will continue to be maintained at a high level for approximately 1 to 1.5 months to prevent similar sudden lockdowns disrupting operations. However, TrendForce believes that it will be difficult for MLCC suppliers to surmise the visibility of customers’ real demand. Once the purchase order situation reverses, they will be unable to respond quickly with capacity adjustments, thus becoming a primary focus of MLCC manufacturers’ risk management in 2Q22.