Apple introduced the Apple Intelligence feature at WWDC24 back in June. However, according to Mark Gurman from Bloomberg, some Apple employees believe the company is two years behind its competitors in AI development.

The Apple Intelligence includes several features, such as AI notification summaries, intelligent prioritization for important alerts, a new Siri with personal context, Image Playground, Genmoji, and more.

According to a report from 9to5Mac, one of the main challenges facing Apple Intelligence is that it mostly depends on models that can run on-device, which also means that Apple Intelligence has quite high requirements for device.

To run Apple Intelligence, users will need a device equipped with at least an A17 or M1 chipset, and it must have a minimum of 8 GB of memory to support the personal intelligence system, as highlighted by 9to5Mac.

The report from 9to5Mac noted that since the models primarily operate on-device, the volume of information they can process is inherently limited. This is also why Apple has chosen to integrate Siri with ChatGPT.

According to the announcement by OpenAI, Apple will support GPT-4o across iOS, iPadOS, and macOS. GPT-4o will be integrated into Siri and Writing Tools, with the expectation that this integration will help reduce the knowledge gap.

Regarding the knowledge gap, according to Mark Gurman from Bloomberg, Apple’s internal research shows that ChatGPT is about 25% more accurate than Siri and can answer about 30% more questions, leading some Apple employees to believe the company is two years behind its competitors in AI development.

Nonetheless, Gurman believes that Apple still has the potential to catch up, as they can often successfully catch up with competitors in areas where they seem to be lagging behind, demonstrated by its experience with Apple Maps.

Furthermore, Gurman also pointed out that Apple has another advantage in its efforts to catch up: the ability to deploy features across a vast array of devices. Apple can quickly equip its current products with the technology required to support new software. We can expect to see this again soon with the rollout of the M4 Macs, which will accelerate Apple’s AI tasks, as indicated by Gurman.

According to Gurman, Apple Intelligence will be available on nearly every Apple device with a screen by 2026. The iPhone SE is set to receive this feature in March, along with the A18 chip, while the entry-level iPad is expected to be updated later in 2025.

Read more

• [News] Apple Intelligence Is Expected to Arrive on October 28th with the Release of iOS 18.1
• [News] iPhone 16 “Supercycle” in Doubt? Concerns Rise Over Slow Rollout with its AI Platform

(Photo credit: Apple)

Ahead of TSMC’s upcoming third-quarter earnings call this Thursday, a report by the Commercial Times gives a heads-up on the foundry giant’s outlook of 3nm orders next year. With NVIDIA and AMD ramping up their next-gen AI accelerators, combined with the strong demand from smartphone chips, orders for TSMC’s 3nm node are set to see a surge in 2025, the report indicates.

According to analysts cited by the report, most flagship smartphone chips are expected to be manufactured with 3nm next year. For instance, Apple’s A19 Pro is said to adopt TSMC’s N3P process, while the Android phones are likely to follow suit.

In terms of the demand from AI accelerators, the report notes that AMD’s MI350 series will likely be manufactured with the 3nm node, which is going to benefit TSMC.

It is worth noting that according to another report by Commercial Times, at Advancing AI 2024 last week, AMD CEO Lisa Su highlighted the company’s close partnership with TSMC, saying that she would be glad to see the CHIPS Act bringing more manufacturing lines back to the U.S.

Sources cited by Commercial Times suggest that for now, AMD has no plans to collaborate with chip makers other than TSMC, and that the company is currently conducting a qualification assessment for chip production at TSMC’s Arizona fab (Fab 21).

On the other hand, Commercial Times indicates that NVIDIA’s orders on TSMC will likely see an increase next year, which would further tighten the foundry giant’s capacity in 3nm and 5nm. NVIDIA’s R-series GPUs are reportedly to be manufactured with TSMC’s 3nm as well, the report notes, but it would not be released until 2026.

TSMC is expected to see strong 3nm demands from other tech giants in 2025 as well. According to the report, Intel is said to outsource most of its Lunar Lake chips to TSMC, while the AI PC chip MediaTek co-develops with NVIDIA is also rumored to be built using the 3nm process. The report states that this chip is expected to debut in the second quarter of next year and enter mass production in the third quarter.

Sources cited by the report note that as clients turn to place orders on 3nm for their latest AI accelerators, foundry capacity will further be strained. Notably, TSMC’s CoWoS packaging reportedly allows interposers reaching 3.3 times for its maximum reticle size to manufacture chips such as NVIDIA’s B200, AMD’s MI300, or Intel’s Gaudi 3, with the number of chips produced on per interposer becoming fewer.

Read more

• [News] Intel Shifts to TSMC for Chip Production: A Looming Threat for AMD?
• [News] NVIDIA and MediaTek Reportedly Team up on 3nm AI PC Processors, with Tape-outs Expected This Month

(Photo credit: TSMC)

While Apple launched iPhone 16 on September 10^th, the smartphone giant has not set up a specific date for the release of Apple Intelligence. Now, according to the latest report by Bloomberg, iPhone buyers would have to wait a few more weeks, as Apple Intelligence is expected to arrive on October 28^th.

The long-awaited function will be arriving then as part of the iOS 18.1 operating system, Bloomberg suggests.

The market had previously anticipated that the AI platform would be released in mid-October, according to another report by MoneyDJ. However, as Apple would like to take a more cautious approach to ensure that all major issues have been addressed, and that the increased traffic on its AI cloud servers can be adequately supported, the company has postponed the schedule a bit.

According to a previous report by Reuters, Apple Intelligence will first launch 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. However, it is worth noting that Apple has not yet announced an AI partner in China for the iPhone 16 series.

According to Apple’s official website, Apple Intelligence will only support devices with the built-in M1 or newer processors (such as iPad Air, iPad Pro, and Mac), as well as the 2023 iPhone 15 Pro Max and iPhone 15 Pro, but not the entry-level iPhone 15. Additionally, it is expected to be compatible with the upcoming iPhone SE, according to The Verge.

For more details, the report by Bloomberg notes that the initial release of Apple Intelligence will feature notification summaries, with later updates such as iOS 18.2 set to introduce ChatGPT integration and support for Genmoji custom emojis.

In March next year, iOS 18.4 will bring other enhancements to the Siri digital assistant, allowing it to manage applications with greater precision and utilize personal information to respond to inquiries, the report notes. Moreover, additional features following iOS 18.1 may include automated email filing in the Mail app and an Image Playground app for creating custom images, according to Bloomberg.

Read more

• [News] iPhone 16 “Supercycle” in Doubt? Concerns Rise Over Slow Rollout with its AI Platform
• [News] Apple Officially Debuts iPhone 16 with AI Features, but Yet to Announce an AI partner in China

(Photo credit: Apple)

Earlier in August, Foxconn announced the plan to expand its overseas investments, with the total amounting to roughly USD 840 million. Now the expansion plan seems to be more materialized, as the Taiwanese tech giant is reportedly evaluating an investment of around USD 1 billion to set up a smartphone display module assembly unit in Tamil Nadu, India, according to a report by The Economic Times, cited by Taiwanese media the Economic Daily News.

The blueprint, if it comes to fruition, would mark Foxconn’s first panel module assembly plant in India, which targets to supply Apple for its iPhone production, The Economic Times notes. Sources cited by the report note that Foxconn aims to have the facility “up and running as soon as possible,” though there has yet to be any specific timeline.

India has emerged as a crucial destination for tech giants seeking to diversify their supply chains away from China amid rising geopolitical tensions with the West. A previous report by BBC reveals that Google is set to manufacture Pixel smartphones at an existing Foxconn facility in India, which is also located in Tamil Nadu.

The new panel assembly business, therefore, is seen as a strategic move to streamline related processes for Foxconn.

In terms of the scale of the assembly unit, The Economic Times suggests that Foxconn has secured approximately 500,000 square feet at the ESR Oragadam Industrial & Logistics Park, adjacent to its smartphone assembly facility near Chennai in southern India.

It is worth noting that according to The Economic Times, Foxconn’s facility is expected to allow other contract manufacturers, such as Pegatron or Tata Electronics, to use the components locally produced, instead of importing pre-assembled modules from China.

Foxconn did not respond to The Economic Times’ request for comment on the 24^th.

An industry consultant cited by the report noted that having a manufacturer assemble panel modules in India matters a lot for the country, as India currently relies heavily on imports for its panel demand, which would further increase the total cost and supply chain complexity.

According to the report, around 60% to 65% of panel module imports come from China, followed by South Korea, which accounts for 20% to 25% of the imports.

In India, the largest smartphone panel module assemblers are TCL China Star Optoelectronics Technology and India’s TXD. CSOT has been assembling panel modules for Samsung and Xiaomi, while TXD supplies Vivo and Oppo, the report says.

Read more

• [News] Apple Reportedly Doubles iPhone Production in India, while Foxconn Holds 67% Share
• [News] Foxconn Expands Investment in the U.S., Mexico, India, and Europe, Approaching USD 840 Million

(Photo credit: Foxconn)

In early September, rumors have it 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. Now here’s the latest update: the fab has started trial production for Apple’s A16 chip, according to a report by Tim Culpan at substack, a technology columnist.

Tim Culpan notes that the mobile processors are manufactured with TSMC’s 5nm, or the so-called N4P node, which is the same as the node used in Taiwan to manufacture A16. The N4P node is actually a member of the 5nm family, as it is regarded as an enhanced version of 5nm, the report explains.

It is worth noting that Apple’s A16 SoC, though launched two years ago with iPhone 14 Pro, is considered as one of the most advanced mobile chips for the company, as the chip is also be seen in iPhone 15 and iPhone 15 Plus models. Culpan indicates that the move marks a milestone that instead of beginning with some less critical chips, Apple and TSMC intend to aim high from the start.

According to Culpan, Apple’s A16 is currently being trial-produced at TSMC Arizona’s “Fab 21” Phase 1 facility, with a small production volume. However, once the second stage of the Phase 1 fab is completed, the output will significantly increase.

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.

However, the situation for Samsung’s investment in the U.S. would be a different story. A previous report from Korean media outlet Business Korea noted that persistent issues with its 2nm yield rate have led Samsung to decide to withdraw personnel from its Taylor, Texas plant, signaling another setback for its advanced wafer foundry business.

As for Intel, which proactively pursues the support of the U.S. government, it is holding steadfast on its investments in the country despite recent announcements to spin-off its foundry business and delaying the projects in Germany and Poland for two years.

Intel plans to invest USD 100 billion over the next five years in new fabs and expansions across Arizona, New Mexico, Ohio, and Oregon, creating 10,000 manufacturing jobs and 20,000 construction jobs.

Read more

• [News] Showing Positive Progress, TSMC’s Arizona Fab Reportedly Reaches Production Yields on Par with Taiwan
• [News] TSMC Receives USD 6.6 Billion for Chipmaking from the US Government, Commits to Constructing Third Fab

(Photo credit: Apple)