TAIPEI (Taiwan News) — Taiwanese suppliers in Apple’s supply chain are expected to see renewed momentum in the third quarter as Apple’s latest AI-focused developments signal an upcoming device refresh cycle, CTEE reported Saturday.
At its Worldwide Developers Conference, Apple introduced the next generation of Apple Intelligence, expanding capabilities across cloud and edge computing, shifting data processing closer to users and their devices. The system further integrates artificial intelligence functions into Siri, enhancing its ability to interpret on-screen content and access real-time information.
The upgrades are widely expected to support demand for higher-specification devices, feeding through to software and hardware requirements. Among assemblers, Foxconn, Apple’s primary iPhone manufacturing partner, is seen as a key beneficiary.
Apple typically launches new iPhones in mid-September, and stronger-than-expected preorders could provide additional support for Foxconn's production activity. Pegatron, which assembles selected iPhone models, is also positioned to benefit from higher build volumes.
Foxconn subsidiary Foxconn Technology, a major supplier of metal casings, remains an important contributor to iPhone structural components. The company has faced weaker financial performance in recent quarters, with revenue and profit under pressure.
However, it has been expanding its metal processing and die-casting capabilities to include electric vehicle components and robotic parts. Market speculation has also linked it to potential participation in Apple’s emerging robotics-related supply chain, although the financial impact remains uncertain.
Printed circuit boards for iPhones are supplied primarily by Compeq Manufacturing and Zhen Ding Technology Holding, also a Foxconn subsidiary. Both have been supported by broader themes such as AI servers and low-Earth orbit satellite demand this year.
Chipmaker TSMC is expected to benefit as Apple’s key chip manufacturer. Optical component suppliers Largan Precision and Genius Electronic Optical are also positioned to gain from improved iPhone demand.
