Investment Opportunities in Apple's Upcoming Product Launch and Supply Chain Implications

Apple’s September 2025 product launch represents a pivotal moment for the tech giant, with a mix of hardware innovation and strategic supply chain shifts poised to reshape the semiconductor and AI landscapes. As the company unveils the iPhone 17 lineup, Apple Watch Series 11, and AirPods Pro 3, alongside software updates and AI advancements, investors must focus on the underlying suppliers and hardware providers that will enable these innovations. This analysis identifies high-conviction investment opportunities in key component suppliers and AI-ready hardware providers, leveraging Apple’s evolving ecosystem and global manufacturing strategies.

Semiconductor Manufacturing: TSMC and Samsung Lead the Charge

Apple’s reliance on cutting-edge semiconductor technology remains a cornerstone of its competitive edge. TSMC, the world’s largest contract chipmaker, is central to this strategy. The company’s Q1 2025 revenue surged 35% year-on-year to $25 billion, driven by demand for advanced-node chips used in Apple’s A19 Pro and M5 series [1]. TSMC’s $165 billion global expansion plan, including six Arizona fabs, underscores its role in manufacturing Apple’s next-generation silicon, particularly for AI and high-performance computing (HPC) applications [1]. Analysts project TSMC’s revenue to grow at a 15% CAGR through 2027, supported by its leadership in 3D IC and backside power delivery technologies [1].

Samsung, meanwhile, is expanding its foundry operations in the U.S. to meet Apple’s demand for DRAM and NAND flash memory. The company secured 37% of Apple’s DRAM orders for the iPhone 17, with SK hynix and Micron accounting for 33% and 30%, respectively [1]. Samsung’s recent Q2 2025 earnings, though mixed, highlighted resilience in its Device Solutions (DS) division, driven by high-value memory products like HBM3E [2]. Analysts from InvestingPro suggest Samsung is undervalued, with potential for a performance rebound in 2025 as AI-driven demand accelerates [2].

Memory and Storage: Micron and Kioxia’s Strategic Roles

The iPhone 17’s advanced features, including enhanced telephoto capabilities and ProMotion displays, require robust memory solutions. Micron, a key supplier of DRAM and NAND, reported a 16% revenue increase in Q2 2025, with its 2025 HBM supply already sold out [3]. JPMorgan analysts highlight Micron’s minimal exposure to China’s restrictions and forecast 41% revenue growth for 2025, citing its dominance in HBM4 for AI and data centers [3]. Similarly, Kioxia, which holds 35% of Apple’s NAND flash memory orders, benefits from the iPhone 17’s storage demands, particularly in Pro models with 48MP sensors [1].

Packaging and Testing: Amkor’s Advanced Capabilities

Amkor Technology, a critical partner in Apple’s chip packaging and testing, is expanding its Arizona facilities to meet growing demand for advanced packaging technologies like TSMC’s CoWoS and Foveros. These technologies are essential for Apple’s M5 series and AI server chips, enabling higher performance and thermal efficiency [4]. Amkor’s recent success in passing NVIDIA’s HBM4 tests positions it as a key player in the AI hardware supply chain, with analysts noting its strategic alignment with Apple’s long-term AI ambitions [4].

AI Hardware and Server Chips: Broadcom’s Emerging Role

Apple’s collaboration with Broadcom to develop its first in-house AI server chip, codenamed Baltra, marks a significant shift toward custom hardware. The chip, expected in 2026, is designed to accelerate AI inferencing tasks and reduce reliance on third-party solutions [5]. Broadcom’s Q3 2025 results revealed a 63% surge in AI revenue, driven by its $10 billion deal with OpenAI and expanding data center demand [3]. With a market capitalization of $1.44 trillion, Broadcom is projected to grow at a 20% annualized rate through 2027, making it a high-conviction play in the AI hardware space [3].

Supply Chain Diversification: Foxconn and India’s Strategic Shift

Apple’s decision to shift U.S.-bound iPhone 17 production to India represents a broader strategy to diversify its manufacturing footprint. Foxconn, which has initiated trial production in India, is also pivoting toward AI servers, with revenue from this segment expected to grow by 170% year-on-year in Q3 2025 [6]. Meanwhile, Tata Electronics’ involvement in casing production highlights India’s growing role in Apple’s supply chain. Analysts project Foxconn’s AI server business to reach $33 billion in 2025, driven by partnerships with NVIDIA and Point2 Technology [6].

Conclusion: High-Conviction Investment Theses

Apple’s product launches and supply chain strategies create compelling opportunities for investors. TSMC and Samsung remain foundational to its semiconductor needs, while Micron and Kioxia are critical for memory and storage. Amkor’s advanced packaging capabilities and Broadcom’s AI server chip development further solidify their roles in Apple’s ecosystem. Additionally, Foxconn’s AI server pivot and India’s manufacturing expansion underscore the importance of supply chain diversification. As Apple continues to integrate AI into its hardware and software, these suppliers are well-positioned to benefit from the company’s long-term growth trajectory.

Source:
[1] TSMC reports 26% sales surge in July, driven by AI demand [https://www.linkedin.com/posts/robertquinn2020_chipdesign-semiconductormanufacturing-activity-7359648346216546305-vbnn]
[2] Earnings call transcript: Samsung Q2 2025 sees revenue decline, new AI products [https://www.investing.com/news/transcripts/earnings-call-transcript-samsung-q2-2025-sees-revenue-decline-new-ai-products-93CH-4222567]
[3] JPM highlights Micron stock resilience amid China restrictions [https://www.investing.com/news/analyst-ratings/jpm-highlights-micron-stock-resilience-amid-china-restrictions-93CH-3989487]
[4] Chip Industry Week in Review [https://semiengineering.com/chip-industry-week-in-review-98/]
[5] Apple partners with Broadcom to develop “Baltra,” its first in-house AI server chip [https://cryptobriefing.com/apple-ai-chip-development/]
[6] Foxconn's AI server revenue tops its Apple earnings for first time [https://asia.nikkei.com/business/technology/foxconn-s-ai-server-revenue-tops-its-apple-earnings-for-first-time]