[News] iPhone 16 with A18 Chip Excels in Computing Power, Boosting Taiwanese Supply Chain – TrendForce

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)

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