According to a major report published by Apple analyst Ming-Chi Kuo, Apple's future mixed reality headset launching in 2022-2023 will use a processor with the same computing power level as M1 Macs. The processor will use ABF substrate, and Unimicron will likely be the supplier of ABF.

The processor design shows the most significant difference between the Apple AR headset and its competitors: (1) it has Mac-level (PC-level) computing power, (2) it can operate independently without relying on a Mac (PC) or an iPhone (phone), and (3) it supports a comprehensive range of applications rather than specific applications.

Apple's goal is to replace the iPhone with AR in ten years, representing the demand for ABF of AR headsets will exceed at least one billion pieces in ten years. Apple's sole ABF supplier, Unimicron, will be the leading beneficiary.

Apple will launch an AR headset in 2022 with a processor with the same computing power as the Mac. The processor will use ABF substrate, and Unimicron will likely be the supplier of ABF.

Kuo predicts that Apple's AR headset to be launched in 4Q22 will be equipped with two processors. The higher-end processor will have similar computing power as the M1 for Mac, whereas the lower-end processor will be in charge of sensor-related computing.

The power management unit (PMU) design of the high-end processor is similar to that of M1 because it has the same level of computing power as M1.

Kuo predicts that the high-end processor will use the same ABF substrate as the M1. The lower-end processors will use BT substrate.

Kuo predicts that Apple's AR headset will be equipped with two Sony 4K Micro OLED displays (so we believe this device can support VR), which require significantly more computing power than the iPhone, thus needing a Mac-level processor.

Apple's AR headset requires a separate processor as the computing power of the sensor is significantly higher than that of the iPhone. For example, the AR headset requires at least 6-8 optical modules to simultaneously provide continuous video see-through AR services to users. In comparison, an iPhone requires up to 3 optical modules running simultaneously and does not require continuous computing.

Unimicron is the exclusive ABF substrate supplier for Apple Silicon (M1, M1 Pro, and M1 Max), so we predict that Unimicron will be the exclusive supplier of ABF for high-end processors for Apple's AR headset device.

The processor design shows the most significant difference between the Apple AR headset and competitors: (1) it has Mac (PC)-level computing power, (2) it can operate independently without relying on Mac (PC) or iPhone (phone), and (3) it supports a comprehensive range of applications rather than specific applications. (Emphasis in this paragraph is from Kuo)

If the AR headset is positioned only as an accessory for the Mac or iPhone, it will not be conducive to the growth of the product. An AR headset that works independently means that it will have its own ecosystem and provide the most complete and flexible user experience.

Apple's goal is to replace the iPhone with AR in ten years, which means AR will support a wide range of applications rather than specific applications.

Apple's AR headset equips with a Mac-level processor because it supports a comprehensive range of applications, needs to work independently, and has higher computing power than the iPhone.

Since Apple's goal is to replace the iPhone with AR in ten years, this means the demand for ABFs for AR headset devices will exceed at least one billion pieces in ten years. Apple Silicon's exclusive ABF supplier, Unimicron, will be the leading beneficiary of this trend. (Emphasis in this paragraph is from Kuo)

Currently, there are more than one billion active iPhone users. If Apple's goal is to replace the iPhone with AR in ten years, it means Apple will sell at least one billion AR devices in ten years.

One of Apple's product positions for the AR device is to provide Mac-level computing power, so no matter how the form factors of the AR device change, it needs highspeed computing processors and ABF substrate.

Kuo forecasts that Unimicron will be the ABF supplier for Apple's AR headset processor. The demand for one billion ABFs in ten years will significantly boost the company's revenue and profit.

In June Digitimes reported that IC board supplier Unimicron Technology is accelerating the construction of a new plant in Yangmei, northern Taiwan, and industry sources expect the facility to be ready for full-scale production of ABF boards by the first half of 2023. With that said, it should be noted that the new plant is part of a joint venture with Intel.