According to a report by Taiwan’s TechNews, the Huawei Kirin 9000S mobile processor, dubbed by Chinese media as “4G technology with 5G speed,” was incorporated into the Huawei Mate 60 Pro smartphone on the 29th. The phone was made available for purchase directly without a launch event or prior promotion, priced at 6,999 Chinese Yuan, sparking significant industry discussion.

The discussion around the Huawei Kirin 9000S mobile processor stems from the fact that, for the first time post the US-China trade war, a chip foundry has manufactured chips for Huawei, featuring an advanced 5-nanometer process. Does this signify a breakthrough for Chinese chip production amidst US restrictions and a leap forward in China’s semiconductor industry? At present, the answer seems to be negative.

According to insiders’ revelations, the Mate 60 Pro’s Kirin 9000S chip was manufactured by SMIC. However, key production aspects are still under US control, making breaking through these limitations quite challenging.

Screenshots shared by users indicate that Kirin is on a 5nm process. Nonetheless, technical experts widely believe that the 9000S isn’t on a 5nm process; rather, it’s on SMIC’s N+2 process.

Source: fin

SMIC is the only Chinese enterprise capable of mass-producing 14-nanometer FinFET technology. Both N+1 and N+2 processes are improvements based on the 14nm FinFET technology and are achieved through DUV lithography, bypassing US restrictions. (The most advanced processes currently require EUV lithography machines.)

SMIC has not openly stated that N+1 and N+2 are on the 7nm process. However, the chip industry generally considers N+1 to be equivalent to 7nm LPE (Low Power) technology, and N+2 to be equivalent to 7nm LPP (High Performance) technology. The shipment of the Mate 60 Pro seems to have openly revealed information about SMIC’s N+2 process reaching maturity and entering mass production.

(Photo credit: Huawei)

According to a report by Taiwan’s TechNews, Chinese electric vehicle giant BYD group announced on yesterday its intention to acquire the mobile electronics manufacturing business of American electronic contract manufacturer Jabil for nearly $2.2 billion in cash, encompassing operations in Chengdu and Wuxi, China. This move is widely interpreted as BYD’s strategy to infiltrate Apple’s supply chain, potentially encroaching on orders from Foxconn and Pegatron.

Notably, Jabil has been a significant supplier of iPhone components to Apple in the past. With BYD acquiring Jabil’s business in Chengdu and Wuxi, there’s speculation that BYD’s aim is to compete for orders from Foxconn and Pegatron. This development has again brought attention to the Apple supply chain dynamics.

In fact, recent times have seen frequent actions within the Apple supply chain landscape. Just last week, China’s Wingtec’s Kunming plant received the “3C Quality Certificate” for Apple’s M2 MacBook Air, indicating that, similar to the M1 MacBook Air, the M2 version will also be produced in China. Beyond BYD and Wingtec, Chinese companies like Luxshare Precision, GoerTek, and Tianma Microelectronics have made inroads into the Apple supply chain through various product avenues.

However, whether BYD’s acquisition of Jabil will significantly impact the volume of Apple orders for Taiwanese manufacturers remains to be observed. An industry insider shared insights with TechNews, suggesting that Jabil’s decision to sell its operations in Chengdu and Wuxi to BYD might be due to the increasing number of American companies relocating from China due to U.S.-China tensions.

Furthermore, there are rumors that Jabil is contemplating a corporate transformation, although the exact nature of this transformation remains unknown. Selling a portion of its business could potentially mark the first step in this transformation journey.

Additionally, while BYD is acquiring Jabil’s business in Chengdu and Wuxi for nearly $2.2 billion, this amount might not be substantial from a corporate perspective, implying that Jabil’s previous capacity offered might be considerably smaller than that of Taiwanese manufacturers.

The industry source also posits that BYD’s acquisition of Jabil’s business in China might simply signify BYD’s intention to venture into institutional component manufacturing, without necessarily indicating a shift towards producing Apple-related products in the end.

(Photo credit: BYD)

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.

According to Taiwan’s TechNews, Foxconn’s founder, Terry Gou, announced his candidacy for the 2024 presidential election. Responding to questions about how Foxconn is navigating pressure over its China-based investments, Gou emphasized that he has identified a successor and, if the Chinese Communist Party were to confiscate Foxconn’s assets due to disobedience, he would respond with a resolute “Yes! Do It!” Following his remarks, Foxconn swiftly issued a statement emphasizing the company’s collective ownership by global investors. Gou, who relinquished his managerial role four years ago, is not involved in current management.

The statement from Foxconn noted that this year marks the company’s 49th year of existence, during which it’s been contemplating the next 50 years. The group is committed to ongoing transformation and sustainable development. Foxconn’s core values of sharing, collaboration, and mutual prosperity are aimed at leveraging its global stature to contribute to the economic growth and quality job opportunities in the 24 regions it operates in. This commitment to enhancing human welfare, both in the past and the future, remains Foxconn’s primary contribution.

Foxconn is steadfast in promoting corporate governance, operational independence (with a majority of independent directors on its board), and diversity (including female directors, executives, and employees), aspiring to set a benchmark for professional management. While not participating in political activities, Foxconn is dedicated to advancing sustainable operations, ensuring the company’s enduring vitality. This ethos, part of Foxconn’s DNA, drives continuous progress and improvement. Over nearly five decades, it has brought transformative technology products to people’s lives. Looking ahead to the next 50 years, Foxconn seeks to innovate its operational model, offering products that revolutionize the way people live and move.

(Photo credit: Foxconn)

BYD Electronics has revealed a strategic move by entering into an acquisition framework agreement with independent third-party Jabil. The plan is to acquire a full 100% ownership of Juno Newco Target Company, with the transaction valued at around RMB 15.8 billion.

Juno, headquartered in Singapore, will become a part of BYD Electronics after the reorganization is finalized. This move will grant BYD Electronics control over the product manufacturing operations located in Chengdu and Wuxi. This includes the manufacturing of components for existing clients.

The BYD Electronics board views this acquisition as an opportunity to expand the group’s customer and product portfolio, further diversifying into the smartphone component sector. The acquisition is expected to significantly enhance the structural alignment of the group’s customers and products, thus propelling the group’s industry advancement and facilitating entry into a new phase of rapid growth.

(Photo credit: BYD Electronics)