Manufacturing

In time for iPhone 9, TSMC’s 7nm tech moving to volume production in 2018

Chip foundry Taiwan Semiconductor Manufacturing Company (TSMC), which counts Apple as its biggest client, is ready to move its cutting-edge seven-nanometer process technology to volume production in 2018.

According to DigiTimes, an improved version of TSMC's seven-nanometer process using extreme ultraviolet technology will be ready for volume production in 2018, according to company co-CEO CC Wei.

The firm's five-nanometer node is slated to enter risk production in 2019, Wei added.

TSMC currently makes A10 chips for iPhone 7 and is said to be exclusively churning out the upcoming Apple-designed A11 processors for iPhone 8 and other 2017 iOS devices.

TSMC in April reportedly began stockpiling A11 chips for 2017 iPhones.

The firm should step up its pace of inventory building from June onward, said industry sources.

iPhone 8's A11 system-on-a-chip should be built on TSMC's ten-nanometer process technology, yielding faster performance and lower power consumption.

The A11 Fusion chip inside iPhone 7 is being manufactured on TSMC's 16-nanometer node.

Apple is building a brand new chip dedicated to artificial intelligence and machine learning, Bloomberg said recently, but it's unclear if the new chip will make its way into iPhone 8.

Foxconn and Sharp buying a stake in micro-LED startup eLux

Apple's favorite contract manufacturer Foxconn Electronics is teaming up with its display-making subsidiary Sharp to acquire a 31.82 percent stake in eLux, a Delaware-based startup engaged in research and development of micro-LED technology and its application to virtual reality and augmented reality devices.

The American startup was established in October 2016 by researchers formerly employed at Sharp's research facilities across the United States.

Sharp says it will team with CyberNet Venture Capital, panel maker Innolux and Advanced Optoelectronic Technology (all affiliated with Foxconn) to buy eLux in October.

Nikkei said earlier this week that Sharp will take a stake of just over 30 percent in eLux, valued at $7 million, in exchange for related patents. Additionally, the Japanese giant will transfer 21 patents regarding micro-LED technology to eLux, said DigiTimes.

Apple is apparently serious about this promising new display technology.

Aside from acquiring micro-LED specialists LuxVue back in 2014, the Cupertino company could kick off trial production of micro-LEDs by the end of 2017, with Apple Watch Series 3 likely switching from OLED to micro-LED display technology.

Power-conserving micro-LEDs consist of small, light-emitting diodes that render images.

They're capable of boosting battery life by as much as 300 percent versus LCDs. The technology allows for improved color gamut and up to two to three times the brightness of OLED-based screens under the same power consumption.

Apple could start building micro-LED screens by end of 2017

Despite many technological bottlenecks, Apple could kick off trial production of the power-efficient display panels based on a relatively new and unproven micro-LED technology by the end of this year. According to a supply chain report Wednesday from Taiwanese trade publication DigiTimes, the Cupertino giant is likely to crank out a small volume of micro-LED display products from its plant in Taoyuan, northern Taiwan at the end of the year.

Other companies are looking to commercialize micro-LEDs, too.

Samsung-owned PlayNitride should install a production line for micro-LEDs in the second half of 2017, which will use a mass-transfer process that mounts micro-LED chips on thin film transistor substrates. Micro-LED are so small that a five-inch 400-by-600 pixel smartphone panel requires nearly one million and a 4K TV panel about 50 million tiny chips.

PlayNitride doesn't expect first micro-LED-based mobile products to appear before 2019.

Taiwan's Industrial Technology Research Institute is expected to tie up with local businesses to begin trial production of micro-LEDs in 2018, using its in-house developed technology.

Let's not forget Apple's contract manufacturer Foxconn, which recently announced plans plans to acquire display startup eLux for the development of next-generation micro-LEDs.

Apple itself acquired micro-LED specialists LuxVue three years ago.

Business Korea claimed last month that Apple Watch Series 3 is likely to use a micro-LED display before the technology proves feasible enough to be deployed on a mass-scale across Apple's iPhone, iPad and Mac devices.

Samsung Display and LG Display, which currently supply LCD screens for Apple devices, could lose around $1 billion per year should the iPhone maker adopt micro-LEDs.

As we explained before, micro-LEDs could pave the way for Apple devices with longer-lasting batteries and brighter screens. As you know, traditional LCD-based screens waste a lot of energy because they require a backlight.

In addition to boosting battery life by as much as 300 percent versus LCDs, micro-LEDs allow for higher-resolution screens with improved color gamut and two to three times the brightness of OLED technology under the same power consumption.

Image: LuxVue's patent related to commercialization of Micro-LEDs, now owned by Apple.

Samsung reportedly signs new deal for OLED panel production for iPhone 9

The Korea Herald is reporting today that Samsung Display, the display-making unit of Samsung Electronics, recently signed yet another deal to build OLED panels for future iPhones. With up to 180 million screens demanded by the iPhone maker, this deal indicates that Apple is laying the groundwork for a much wider adoption of OLED panels in future iPhones.

The new deal is focused on supplying OLED panels for the new iPhone next year, tentatively called “iPhone 9”. To build OLEDs in 5.28 and 6.46-inch sizes, the conglomerate will break ground on a new factory in the South Chungcheong Province in South Korea.

The mentioned 6.46-inch size may point to a future iOS device, potentially due in 2018.

“The two companies have recently signed a non-disclosure agreement on general conditions, including the screen size,” said a source. “Other details such as screen design and functions could be adjusted considering the phone is still under development.”

Samsung Display is already supplying 80 million OLED screens for iPhone 8 this year. iPhone 8 is said to feature a 5.8-inch OLED screen with an active display area of 5.1 inches.

Image: CNC-machined iPhone 8 dummy via Benjamin Geskin

Indian government offers Apple tax incentives to boost local iPhone production

India has offered tax concessions to Apple to expand iPhone production in the country just days after it was announced that the Cupertino giant kicked off local iPhone SE production.

This is part of Prime Minister Narendra Modi's plans to boost local manufacturing.

Ravi Shankar Prasad, the central minister for Electronics and IT, told Reuters this morning that Apple has already approached the Indian government regarding potential expansion of its manufacturing facility in the southern Indian technology hub of Bengaluru, operated by its Taiwanese supplier Wistron which as of recently has been assembling iPhone SE there.

According to the news gathering organization, the Indian government has offered to permit Apple to import handset components intended for use in local manufacturing tax free.

Here's an excerpt from the article:

Among a set of tax concessions, Apple had initially sought a 15-years tax holiday for all components that it would import for setting up a manufacturing facility in India.

A panel of ministries rejected that demand and has offered a phased program to increase the share of local production in the manufacturing, Aruna Sundararajan, Secretary at the Ministry of Electronics and IT said.

“We have offered them tax exemptions on those components which could not be manufactured in India,” Sundararajan told Reuters.

Local manufacturing component would have to be increased gradually, he added.

The tax concessions will be subject to the condition of increasing local value addition over a period of time, to which Apple has reportedly agreed to.

“It will be a little early to say that India and Apple have agreed on the common ground,“ cautioned a government official.

It's been speculated that Apple and Wistron began making iPhone SE in India as a way to lower the handset's price point in order to make it more affordable to Indian consumers.

Apple boosts production of 10.5″ iPad Pro ahead of rumored WWDC reveal

Apple has boosted production of a rumored 10.5-inch iPad Pro model ahead of the tablet's supposed reveal at the company's annual pilgrimage for developers next month, Taiwanese trade publication DigiTimes said Friday.

The device's monthly shipment volume is now expected to grow to 600,000 units in July, up from around 500,000 units currently. The Cupertino company is hoping to achieve annual shipments of the new tablet in excess of five million units in 2017.

The 10.5-inch iPad Pro model reportedly entered mass production in March-April.

Watchers expect demand for the recently launched $329 iPad model “to pick up strongly” starting at the end of the quarter, reaching its peak in the next quarter when the device's monthly shipments could pass four million units in June and July, the market watchers noted.

As for the 12.9-inch iPad Pro model, Apple is expected to update its highest-resolution iOS device at some point this year, with some supply chain sources saying a second-generation 12.9-inch iPad Pro model could enter mass production in June.

“Sources from the upstream supply chain noted that Apple's inexpensive 9.7-inch iPad is expected to accelerate Apple's pace on phasing out the iPad mini 4 from the market,” as was rumored earlier this week.

https://www.youtube.com/watch?v=knJNtkRyO9E

Subscribe to iDownloadBlog on YouTube

Analyst Ming-Chi Kuo gave the 10.5-inch iPad Pro model 70-30 odds of being announced at Apple’s annual Worldwide Developers Conference next month.

In a recent note to clients, Kuo wrote that Apple’s engineers were able to squeeze a 10.5-inch display into a form factor similar to the existing 9.7-inch iPad models due to the narrower side bezels on the upcoming tablet.

“The newly designed 10.5-inch iPad Pro will have a similar form factor to the 9.7-inch model, but will feature a larger display thanks to narrow bezels,” said the analyst.

Kuo believes that the overhauled design of the device should help improve the user experience and boost traction in the corporate and commercial sectors.

Apple has reportedly commissioned Foxconn to assemble the 10.5-inch iPad Pro model.

General Interface Solution will be the sole supplier of touch panels for the device.

The same supplier provides 3D Touch components for existing iPhones and is said to have landed orders for the three times pricier 3D Touch parts for the OLED-based iPhone 8 model.

KGI forecast 10.5-inch iPad Pro shipments of five to six million units in fiscal 2017, accounting for fifteen percent of total fiscal 2017 iPad shipments.

Image: 9.7-inch iPad Pro with a 10.5-inch piece of paper overlaid via Dan Provost.

Apple kicks off iPhone SE production in India

Apple has officially kicked off the initial production run of an unspecified “small number” of iPhone SE handsets in its Bangalore plant in India, marking the first time the company has assembled any iPhone model in the vast 1.33 billion people market.

As previously suspected, the manufacturing of the cheapest iPhone model was handled earlier this month by Taiwanese contract manufacturer Wistron via its assembling unit located in Karnataka, a state in the south western region of India.

Apple confirmed in a statement that it has begun the initial production of a small number of iPhone SE handsets in Bangalore. The Cupertino company will begin shipping the devices to domestic customers later this month, with the first shipments potentially hitting retail stores as early as this week or next, according to a person familiar with the matter.

A state official with direct knowledge of the matter told the publication that the Cupertino giant “could seek more production” within the country in the future.

It's unclear if Apple will reduce iPhone SE pricing in India to better compete with inexpensive smartphones from rivals. In India, according to Deutsche Bank’s annual “Mapping the World’s Prices” survey, the 128-gigabyte 4.7-inch iPhone 7 model costs about $900 versus an average selling price of $815 in the US.

iPhone SE costs $399 in the United States. By comparison, the current average going rate for iPhone SE in India is about $320. Some analysts think Apple should price the phone really aggressively were it to move a good number of these devices in the country.

“In three to five years, these users will be able to graduate to a standard-priced iPhone,” said Faisal Kawoosa, principal analyst at research firm CMR.

According to IDC, the average smartphone price in India is about $250.

Local government officials reportedly believe Apple could sell iPhone SE in India for as low as the equivalent of $220 in Indian currency. Apple's manufacturing partners assemble most of the iPhones the company sells in massive factories in China, with a smaller number of older iPhone models being manufactured in Foxconn's facilities in Brazil.

TSMC resolves manufacturing woes, kicks off production of A11 chips for upcoming iPhones and iPads

Taiwan Semiconductor Manufacturing Company (TSMC) has commenced production of Apple-designed A11 chips for upcoming iPhones and iPads.

According to a report Thursday from Taiwanese trade publication DigiTimes, the semiconductor foundry has successfully resolved initial manufacturing issues in the company's ten-nanometer FinFET process technology.

“TSMC has begun 10nm chip production for Apple's next-generation iPhone 8 series,” sources told the publication. “Production was once affected by issues involving stacking components in the backend integrated fan-out packaging process, but they have already been solved.”

TSMC is Apple's exclusive manufacturer of the in-house designed 16-nanometer A10 Fusion chip for the iPhone 7 series. TSMC's new ten-nanometer process should yield smaller chips that run faster and consume less energy.

TSMC has also secured 12-nanometer chip orders (a smaller version of its 16nm technology) from Nvidia, MediaTek, Silicon Motion Technology and HiSilicon. As for TSMC's 10nm process, the node technology has obtained orders from Apple, MediaTek and HiSilicon, as per sources.

KGI reiterates iPhone 8 production ramp up will be delayed to as late as October-November

KGI Securities analyst Ming-Chi Kuo has reiterated his previous stance that iPhone 8 production ramp-up will be delayed to as late as October-November versus the normal August-September timeframe due to “major hardware upgrades.”

In a note to clients Tuesday, obtained by MacRumors, the analyst cautioned that any delay is likely to cause severe supply constraints and impact overall shipments during the second half of 2017.

“We are seeing more evidence that the worst-case scenario forecasted in our April 19 report could materialize,” reads the note titled “Rising probability of worst-case scenario for iPhone shipments”.

Kuo goes on to predict that “severe supply shortages” could persist for “a while” following the introduction of new iPhones in September.

“Severe supply shortages may persist for a while after the new models are launched, capping total shipments of new iPhones in the second half of 2017,” reads the note. The revered Apple analyst has now revised his iPhone shipment estimates from 100 to 110 million units down to 80 to 90 million iPhone units for the second half of 2017.

https://www.youtube.com/watch?v=SKqCKdEGEPk

Subscribe to iDownloadBlog on YouTube

Kuo says it remains to be seen whether demand will fully shift to iPhone 8.

That's because, in Kuo's view, it's still unclear if a rumored 3D sensor will be useful. He also cited other factors such as the potential for Touch ID to be eliminated completely and intensifying smartphone competition.

Here's an excerpt from the note:

While we are positive on potential replacement demand triggered by OLED iPhone, it's too early to determine if demand will shift fully in that direction.

We recommend investors keep tabs on the following issues:

(1) whether the 3D sensor of OLED iPhone provides an innovative user experience;

(2) whether OLED iPhone cancels Touch ID (fingerprint recognition);

and (3) whether Apple's competitors launch more innovative products which could compete with OLED iPhone in 4Q17-2Q18.

If iPhone 8 is indeed facing a delayed launch as Kuo has suggested, Apple could still preview the handset alongside the iterative iPhone 7s and iPhone 7s Plus updates in September.

The company could then choose to launch the OLED iPhone in small quantities before its suppliers are able to fully ramp up production.

Image: CNC-machined iPhone 8 chassis based on leaks via Benjamin Geskin

AirPods manufacturer Inventec reportedly lands orders for Apple’s rumored Echo rival

Following claims that Apple has finalized designs for its alleged standalone Siri/AirPlay device, Chinese-language Economic Daily News report Wednesday that AirPods manufacture Inventec has now landed orders for the device.

According to KGI Securities analyst Ming-Chi Kuo, the connected speaker will be Apple's first AI-based smart home device, powered by Siri and supporting AirPlay and other features.

It's expected to take on Amazon's smart home assistant Echo, but will be aimed at the premium segment of the market.

Inventec is the sole assembler of Apple's wireless AirPod products, while iPhone manufacturer Foxconn Electronics is the sole producer of Amazon's Echo devices. Kuo said Apple may announced the device at WWDC 2017 in June. He added adding that the connected AI-driven speaker will be priced higher than Amazon's $179 Echo.

https://www.youtube.com/watch?v=Io8NU6iTto0

Subscribe to iDownloadBlog on YouTube

Other reports have said that Apple's device will feature Beats audio technology and a MacPro-like concave top with built-in controls, with a speaker mesh portion covering it all.

Mockup via iFunnyVlogger on Twitter

Undercover factory worker spills the beans on security measures to prevent iPhone leaks

As part of his summer project, NYU grad student Dejian Zeng spent six weeks working undercover in a Chinese factory operated by iPhone manufacturer Pegatron. In a video interview with Business Insider's Kif Leswing, he reveals some of the security measures designed to prevent unwanted leaks as part of preparations ahead of iPhone 7 production.

Here's an interesting excerpt from the interview:

In the workshop, we were originally producing iPhone 6s and during that time that we were in the workshop they were already building up some facilities or infrastructure to build the assembly line for iPhone 7.

And they had this big curtain that blocked everything.

While we were in the same workshop, we saw nothing. And later on, we were moved to another sub-factory building to do work there for a while, because they need to rebuild the assembly line that we are working on also.

The following points from the interview stood out for me:

It's “impossible” for workers to take photos, let alone carry some components out Workers are required to leave their phones, keys and other metals in a locker room No metal is allowed inside the factories There are security cameras in every assembly line Security involves access cards, facial recognition cameras and metal detectors

The security level increased sharply ahead of iPhone 7 production.

For starters, management at the factories installed two metal detectors and increased their sensitivity, in turn creating problems for female workers wearing bras.

“All of a sudden, on that specific day, they couldn’t pass the security door, and they needed to go back and change everything,” said Dejian.

He says regular assembly line workers were strictly prohibited from bringing their cameras or phones inside the factories, unlike high-level managers who could bring their phones.

“I’m not sure whether photos can get leaked by that,” he said.

But even high-level managers were asked to wake up their phone's screen every time they went through the metal detectors so that security personnel could determine that they weren't carrying an unfinished iPhone unit concealed in a fake phone case. And if a worker does get caught attempting to carry an iPhone out of the factories, they're sent to the police.

In spite of all the security, leaks do happen and they're a fact of life.

Who's to stop a person from running to the press to tell them what they saw inside the factories? After they started building iPhone 7, some employees were able to confirm to the media that the device would come without headphone jack and with two cameras on the back.

“Those are some things that we can see and we can remember and we can tell the media later on,” said Dejian. Apple is known for holding its contractors to the highest security standards.

In that regard, the following excerpt is revealing:

When I was producing iPhone 6, I did see Apple come for audits. I think it was two or three times.

And every time when they come, the manger in the factories got very nervous. They would tell us you need to follow the procedure and sit straight, and don’t talk.

When they kicked off iPhone 7 production, Apple staff was there “every single day”.

Factory workers are reportedly aware of how popular the iconic smartphone is and think it’s “very cool” that they get to see Apple's unreleased products before anyone else.

The full video interview is available on Business Insider.