I have two Yorkies but have had three so far. Two have been silky but mat and the third is more coarse and never knots up. I wish I could tell you about puppy hair but I got my female at 12 weeks and her hair has never changed from the silky, fine hair that she has.
Yours looks more like my male if we let him grow out. We have kept in short with a lion face for most of his life as he will look like an ewok if we let him get too long.