Apple’s 2024 fall event officially took place earlier, highlighting the launch of the new iPhone 16 series, along with other products like the Apple Watch Series 10 and AirPods 4. According to CEO Tim Cook, the next generation of iPhone has been designed for Apple Intelligence, marking the beginning of an exciting new era.

Apple and global tech companies are in a race to integrate AI into their products, with smartphones anticipated to be one of the key competitive arenas.

Apple’s AI software, Apple Intelligence, is set to enhance Siri and improve functionalities like object recognition and identification through the phone’s camera, per sources cited in a report from Reuters.

A test version of Apple Intelligence will launch next month 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. It is worth noting that Apple has not yet announced an AI partner in China for the iPhone 16 series.

Apple stated that improvements, including enhancements to Siri, will be phased in over time but did not provide a timeline for moving beyond the test phase.

Notably, Apple’s event occurred just hours before Huawei’s launch of a tri-fold phone, highlighting the competitive challenge Apple faces.

In contrast, Huawei’s website revealed on Monday that it had already received over 3 million pre-orders for its Z-shaped tri-fold phone before its official release.

This underscores Huawei’s ability to withstand U.S. sanctions and bolsters its competitive position against Apple in China, where consumers are enthusiastic about AI features and willing to pay a premium for them, according to a Reuters report.

• iPhone16

The iPhone 16 features a 6.1-inch display, while the iPhone 16 Plus has a 6.7-inch screen. Both models are equipped with the A18 chip built on TSMC’s advanced 3nm process, which reportedly offers a 30% boost in CPU performance compared to the A16 chip used in iPhone 15. Additionally, they come with increased battery capacity and enhanced cooling capabilities.

Moreover, the latest iPhone chips are based on the newest Arm architecture, which includes specialized features aimed at accelerating AI applications.

Notably, Apple has introduced an “Action Button” on the iPhone 16 and iPhone 16 Plus, which supports various functions like camera, flashlight, Focus mode, translation, magnifier, and voice memos.

The higher-end iPhone 16 Pro and 16 Pro Max are crafted from titanium and come with enhanced AI features, including suggestions for optimizing photo shoots and advanced audio-editing tools designed for professional video production.

Still, a previous report from Bloomberg has also addressed concerns over the slow rollout with its AI platform, which may put iPhone 16 “Supercycle” in doubt.

• New Apple Watches and Airpods

Apple also unveiled new Watches and AirPods with health-focused capabilities, as well as hardware-design improvements.

Apple highlighted the Watch’s ability to discover longer-term health conditions such as sleep apnea as well as detecting and responding to emergencies such as a fall.

For the new AirPods, there are two versions: a standard model and a version with active noise cancellation. As part of the AirPods update, Apple’s introduced hearing-aid features are under review by U.S. regulators.

Read more

• [News] iPhone 16 “Supercycle” in Doubt? Concerns Rise Over Slow Rollout with its AI Platform
• [News] Fuelled by AI Features, Apple’s iPhone 16 Shipments Reportedly to Increase by 10%

(Photo credit: Apple)

According to a report from Commercial Times citing sources, it’s revealed that NVIDIA has executed changes to the Blackwell series’ 6-layer GPU mask. Therefore, the process can now proceed without re-taping out, as production delays being minimized.

The report noted that NVIDIA’s updated version of B200 is expected to be completed by late October, allowing the GB200 to enter mass production in December, with large-scale deliveries to ODMs expected in the first quarter of next year.

Previously, as per a report from The Information, NVIDIA’s GB200 was said to be experiencing a one-quarter delay in mass shipments. Another report from the Economic Daily News further suggested that the problem likely lies in the yield rates of advanced packaging, which mainly affected the non-reference-designed GB200 chips.

Industry sources cited by Commercial Times addressed that NVIDIA’s Blackwell chip used to be facing instability in metal layers during the HV process, which was then resolved by July.

In addition, since the issue reportedly occurred in the back-end-of-line process, a new tape-out was deemed unnecessary. Still, as CoWoS-L capacity remains a bottleneck, the advanced packaging for GB200 this year is expected to adopt  CoWoS-S.

Read more

• [News] Foxconn Confirms Shipment of NVIDIA’s GB200 to Start in Q4 as Planned
• [News] Foxconn Remains Unfazed Despite NVIDIA’s GB200 Delay, with Customers Aim to Secure Their Orders

(Photo credit: NVIDIA)

According to a report by the Economic Daily News, TSMC’s first high numerical aperture extreme ultraviolet lithography (High-NA EUV) equipment will arrive this month, aiding the company in progressing its advanced process technology.

Regarding these rumors, ASML stated on September 9 that it does not comment on individual customers. TSMC has also declined to respond to market speculation.

The report has cited industry rumors, pointing out that TSMC’s first High-NA EUV machine is expected to be moved to its Global R&D Center for research purposes, addressing the development needs of future advanced processes like A14.

As for pricing, it’s reportedly rumored that TSMC President C.C. Wei personally negotiated a favorable deal, reducing the overall price by nearly 20% through a combination of purchasing the new equipment while also selling older models.

The same report further suggests that the High-NA EUV is priced at over EUR 400 million. Due to the inability to disassemble the optical lens components, the equipment is taller than a conference room and significantly longer than the previous generation. 

The report, quoting statistics, claiming that TSMC is currently the world’s largest holder of extreme ultraviolet (EUV) lithography systems, estimated to account for 65% of the global EUV wafer equipment output. It was also said to be the first manufacturer to introduce EUV equipment into the 7nm process.

ASML has already received orders for next-generation products from all of its EUV equipment customers.

Greet Storms, ASML’s Vice President of High NA EUV Product Management, recently stated that ASML is advancing new technologies and has gained the support of all EUV customers during the R&D phase.

She addressed that, these customers, who have also placed orders for High-NA equipment, are expected to move toward mass production by 2026, although the timeline will ultimately depend on customer process costs and other factors.

ASML had previously confirmed that it will deliver its latest High-NA EUV to TSMC by the end of this year. ASML emphasized that the next-generation EUV equipment began shipping at the end of last year, with a capacity to expose over 185 wafers per hour.

This will support mass production of sub-2nm logic chips and memories with similar transistor densities.

Read more

• [News] ASML’s Second High-NA Equipment to be Installed in Intel’s Oregon Fab Soon
• [News] Price for ASML’s Hyper-NA EUV Rumored to Double, Causing TSMC, Samsung and Intel to Hesitate

(Photo credit: ASML)

As per a report from Bloomberg citing sources, it’s pointed out that TSMC’s first US fab in Arizona began producing engineering wafers using the 4nm process in April, with yields reportedly comparable to those manufactured in its Southern Taiwan Science Park facility, showing promise in meeting its targets.

Addressing on the matter, TSMC reportedly stated that the project is proceeding as planned and is making good progress, without further commenting on the yield.

TSMC plans to build three plants in Arizona, each with cleanroom spaces twice the size of typical logic fabs in the industry. The first fab is expected to begin mass production in the first half of 2025.

TSMC’s second fab in Arizona will use 2nm process technology to meet strong AI-related demand, with production expected to begin in 2028. The third fab will employ 2nm or even more advanced process.

TSMC stated that once the fabs are fully operational, they will deliver the same level of manufacturing quality and reliability in Arizona as is provided in its Taiwan facilities.

The U.S. government officially announced in April that it will provide a USD 6.6 billion subsidy to TSMC, and confirmed that TSMC will build its third fab in Arizona, USA, with total investment rising to USD 65 billion.

Read more

• [News] TSMC’s Kumamoto Fab Influence Expands, Economic Spillover Effect Expected to Exceed JPY 10 Trillion
• [News] TSMC Receives USD 6.6 Billion for Chipmaking from the US Government, Commits to Constructing Third Fab

(Photo credit: TSMC)

Intel has outsourced the production of its Lunar Lake processors to TSMC. According to a report from Commercial Times, due to recent setbacks in Intel’s wafer foundry business, the company has decided to outsource all sub-3nm process manufacturing to TSMC.

The company is also said to be implementing a global 15% workforce reduction plan in an effort to reverse its decline. However, industry sources also reveal that the layoffs are primarily targeting the foundry business, while Intel’s Taiwan branch remains unaffected to maintain production partnerships with local chip manufacturers.

Intel remains committed to its wafer foundry business, as it reportedly released the 18A process design kit (PDK) to IC manufacturers in July.

However, recent reports indicate that Broadcom has expressed concerns about the feasibility of Intel’s 18A process, concluding that it is not suitable for mass production. A Broadcom spokesperson cited by the report has indicated that it is currently evaluating Intel Foundry Services’ products and services, though no final assessment has been reached yet.

Industry sources cited by Commercial Times further note that Broadcom has been collaborating with TSMC for many years, particularly in advanced processes below 7nm, positioning itself as a key player and securing a spot among TSMC’s top ten customers.

Looking at Intel’s latest quarterly report, its foundry business posted a loss of USD 2.8 billion, with an operating profit margin of -65.5%. The company acknowledged that the ongoing expansion of its Intel 4 and Intel 3 facilities in Ireland, along with increased R&D and startup costs for advancing its technology development, will impact profitability.

This has thus underscored the significant challenges Intel faced in achieving both technological breakthroughs and mass production in the semiconductor industry.

Intel is cutting costs and driving efficiency while actively pursuing transformation. The company aims to save USD 10 billion by 2025, even halted dividend payments—a move not seen in 30 years.

Additionally, its global expansion efforts have slowed. As per a recent report from Malaysian media outlet The Star, citing informed sources, it’s reported that Intel will temporarily halt its new chip packaging and testing project in Penang as part of cost-cutting efforts.

Read more

• [News] Amidst Rumors of Germany Plant Delay, Intel’s Penang Project Also Reportedly on Hold
• [News] Intel’s 18A Reportedly Runs into Trouble with Broadcom, while 20A Plan on Arrow Lake Cancelled

(Photo credit: Intel)