Amid Apple’s intention to reduce its dependence on China and promote India as another major iPhone production hub, Indian financial media outlet Moneycontrol has revealed in a report that Apple will manufacture the iPhone 16 Pro series in India, marking the company’s first production of high-end models in the country.

According to the report citing industry sources, Apple will further expand its manufacturing plans in India. It is expected that later this year, production of the iPhone 16 Pro and iPhone 16 Pro MAX will begin at Foxconn’s Sriperumbudur plant in Kancheepuram, Tamil Nadu, India.

Currently, the plant is said to be entering the new product introduction (NPI) phase for the iPhone 16 Pro series. Reportedly, if all goes well, it will then proceed to the mass production stage.

At the end of last year, Foxconn announced that its Indian subsidiary would expand its plant, marking one of Foxconn’s rare significant investments in India in recent years.

At the time, some have speculated that this move was a preliminary step in conducting the iPhone 16 series NPI in India. This would be the first time in iPhone history that NPI is conducted outside of China, indicating that Apple aims to establish India as another major global iPhone production hub.

The report further indicates that this strategy is part of Apple’s supply chain diversification efforts, aiming to reduce reliance on Chinese plants and enhance manufacturing capabilities in India. Apple hopes to increase the proportion of iPhones manufactured in India from the current 14% to 25% in the coming years.

Apple began its “Make in India” initiative in 2017 by assembling the first-generation iPhone SE. Since then, Apple has gradually expanded its iPhone production in India, assembling the iPhone 6S in 2018, the iPhone 7 and XR in 2019, the iPhone 11 in 2020, the iPhone 12 and iPhone 13 in 2021, and the iPhone 14 in 2022.

Previously, iPhone production in India lagged behind China’s mass production by about 6 to 9 months. Last year, for the first time, Apple began producing the iPhone 15 and 15 Plus in India immediately after the iPhone launch event. This year, Apple is taking a further step by producing the high-end iPhone 16 Pro series in India.

Additionally, Apple reportedly plans to start manufacturing iPads and AirPods in India later this year, highlighting Apple’s growing focus on the Indian market.

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(Photo credit: Apple)

Masahiro Okitsu, President of Sharp, a subsidiary of Foxconn, announced in a joint interview with Japanese media that the Sakai Display Product (SDP) plant, which produces large-size LCD panels for TVs, will cease production earlier than planned. Initially scheduled for the end of September, the shutdown is now expected to occur in late August.

According to a report by Asahi Shimbun on July 16, Sharp President Masahiro Okitsu announced in a joint media interview that the SDP, which produces LCD panels for TVs, is expected to completely cease production after the Obon festival (late August). This interview marks Okitsu’s first media appearance since taking office as Sharp’s president on June 27.

Okitsu mentioned that around July 20, SDP will start put glass substrates into production, with the final batch of LCD panels produced a month later.

Sharp’s SDP land and plant will be transformed into an AI data center, and a collaboration with Softbank and KDDI has been announced. However, Masahiro Okitsu did not elaborate on this cooperation framework during the media interview on July 16th.

Regarding Foxconn Chairman Young Liu’s appointment as Chairman of Sharp, Okitsu stated that this makes the division of duties clearer. Foxconn will oversee and support Sharp, while the existing brand business operations will be managed by Sharp.

Okitsu also pointed out the goal of increasing the operating profit margin of the “brand business,” which includes products like white goods, to 7% by the 2027 fiscal year (compared to less than 5% in the 2023 fiscal year). He emphasized that achieving a return to profitability in the 2024 fiscal year is imperative.

Reportedly, with Foxconn’s technical assistance, Sharp also plans to enter the AI and electric vehicle (EV) businesses, with plans to launch in the 2026-2027 fiscal years.

On May 14, Sharp announced its financial report, indicating that due to impairment losses in its panel business, the net loss for the 2023 fiscal year (April 2023 – March 2024) reached JPY 149.9 billion, marking the second consecutive year with a net loss exceeding 100 billion yen. However, Sharp forecasts that for the 2024 fiscal year (April 2024 – March 2025), its consolidated operating profit will be JPY 10 billion, with a consolidated net profit estimated at JPY 5 billion.

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• [News] Foxconn Ventures into Advanced Packaging, Sharp to Follow with Production Capacity in 2026
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(Photo credit: Sharp)

According to a report from Economic Daily News, Foxconn Group is advancing into the field of advanced packaging with a strategic alliance between Taiwan and Japan, focusing on the trending panel-level fan-out packaging (FOPLP). Following Innolux’s related developments in Taiwan, another of Foxconn’s invested companies, Sharp, has announced its entry into panel-level fan-out packaging in Japan, with production capacity expected in 2026.

Foxconn Group already possesses a comprehensive capability in the AI sector, and with the key advanced packaging technology now in place, they are fully mobilized. On the other hand, Sharp is undergoing a major transformation, which also benefits Foxconn— as its subsidiary Foxconn Technology is a major shareholder in Sharp, and Pan International is a partner with Sharp, both of which stand to gain from this transformation and provide support for it.

Pan International has previously collaborated with Sharp in areas such as wire harnesses, PCBs, and optical components, and has also acted as a distributor for Sharp’s panels and optoelectronic components. With Foxconn Chairman Young Liu concurrently serving as Sharp’s chairman, along with Sharp scaling down its panel business and expanding its semiconductor operations, there is significant interest in whether there will be new collaborations between the two companies.

Earlier, Sharp announced that it is partnering with Japanese electronic component manufacturer Aoi Electronics to advance into the field of advanced packaging. Reportedly, an agreement has been signed between Aoi, Sharp, and Sharp Display Technology, under which Aoi will utilize Sharp’s panel facilities to build a semiconductor back-end process production line. In 2024, Aoi will establish an advanced semiconductor panel packaging production line at Sharp’s Mie Plant, aiming for full-scale production by 2026 with a monthly capacity of 20,000 wafers.

Nikkei previously reported that Sharp continues to downsize its panel plants while expanding semiconductor production. Sharp noted that the advanced packaging production line will be used to produce Aoi’s FOLP. According to the agreement, the three companies are considering cooperation in the semiconductor back-end process to expedite the establishment of production lines and achieve full-scale production.

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(Photo credit: Foxconn)

Apple is reportedly pushing the boundaries of AI with the upcoming iPhone 16 series, which is expected to have computational power that surpasses industry expectations. According to a report from Economic Daily News, it has suggested that Apple is developing the A18 chip for this year’s iPhone 16 models, with performance potentially exceeding that of Apple’s current most powerful AI chip, the M4. This advancement means the iPhone 16 series will be more capable of running AI models on-device, adapting to various AI tasks.

While these applications are primarily aimed at high-end smartphones, the sources cited by the same report have shown optimism that TSMC and Foxconn, as parts of Apple’s supply chain, are likely to benefit from this development.

The same report further cites the rumor that the A18 chip developed for the iPhone 16 series will feature a highly powerful neural engine, crucial for handling generative AI functions. To keep up with the AI trend, Apple introduced its proprietary AI application, “Apple Intelligence,” in collaboration with OpenAI at this year’s Worldwide Developers Conference (WWDC). This application is designed for high-end models like the iPhone 15 Pro and Pro Max, with hardware capabilities exceeding expectations.

The iPad Pro which unveiled in May is the first to feature the M4 chip. Compared to its predecessor, the M2, the M4 chip boasts up to a 50% increase in CPU speed. Built with TSMC’s second-generation 3-nanometer technology, the M4 chip includes Apple’s fastest neural engine to date, capable of supporting up to 38 trillion operations per second.

If the A18 chip is equipped with an even more powerful neural engine, its computational speed will surpass that of the M4 chip. This means the iPhone 16 series will be able to run AI models locally with greater efficiency. Reportedly, TSMC is the exclusive supplier for the iPhone 16’s processors, therefore expected to be benefited from the strond demand of A18.

On the other hand, Foxconn, historically the largest assembler of iPhones, has recently focused on high-end models. As Apple intensifies AI functionality in new devices, the market anticipates a new wave of device upgrades, enhancing Foxconn’s performance in consumer electronics in the latter half of the year.

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(Photo credit: Apple)

Foxconn Chairman Young Liu has been elected as Sharp’s chairman at Sharp’s shareholders’ meeting on 27^th, according to a report from the Economic Daily News, citing an announcement by the Tokyo Stock Exchange. The report also noted that Liu will leverage the strength of the Foxconn Group to fully assist Sharp in its transformation.

According to the report, Liu has previously shared the role Foxconn plays in Sharp’s operation, stating that Foxconn is currently assisting and advising Sharp’s management team from the perspective of a major shareholder.

Ahead of its shareholders’ meeting, the Japanese electronics maker has already restructured its management with a new CEO appointed. On June 26^th, the company announced that Executive Vice President Masahiro Okitsu will succeed Wu Po-Hsuan as president and CEO.

According to a report by Technews, after Liu assumes the position of Chairman at Sharp, he will accelerate Sharp’s transformation, deepening the company’s “collaboration for medium- to long-term growth,” while establishing a trustworthy Japanese Sharp brand.

In addition to inviting Liu to serve as chairman, Sharp’s board of directors has also approved the plan for a new executive management structure, aiming to strengthen the governance system with six independent directors. Under the new scheme, Sharp hopes to advance in areas including asset rationalization and the creation of a positive cycle for branding and new businesses.

As converting LCD panel factories into semiconductor bases seems to emerge as one of the latest trends, Sharp plans to collaborate with Intel to utilize its LCD panel factory in Japan, according to a report by Nikkei. Earlier in mid-May, Sharp decided that Sakai Display Products (SDP), its 10th generation panel factory, which produces large-sized LCD panels for TVs, would cease production by the end of September. Instead, the company intends to seek collaboration with other companies and optimize its factories to improve profitability.

Sharp posted a consolidated net loss of 149.9 billion yen (USD 959 million) in fiscal 2023, which ended in March, remaining in the red for a second consecutive year.

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(Photo credit: Sharp)