Apple's supply chain is gearing up for the upcoming iPhones. Apple is expected to adopt flexible AMOLED for all of its next-generation iPhones to be launched later this year and will outpace Samsung to become the top buyer of AMOLED smartphone displays this year. TSMC has kicked off production for the A15 processors. Meanwhile, chip shortages are expected to undermine server production at ODMs through the end of the year.Apple to outpace Samsung as top buyer of smartphone AMOLED displays: Apple is expected to unseat Samsung Electronics as the largest buyer of AMOLED displays for smartphones in 2021, as new iPhones for the year reportedly will all adopt flexible AMOLED screens, pushing up the penetration of such displays in iPhone devices to around 80%, according to industry sources.TSMC kicking off production for new iPhone chips: TSMC has kicked off production for Apple's next-generation iPhone processor dubbed A15, and will see demand for the chip surpass that for its predecessor last year in scale, according to industry sources.Server ODMs see shipments disrupted by chip shortages: Server ODMs have seen their shipments disrupted by the shortages of power management ICs, network switches, and other chips and components, which are unlikely to ease until the end of this year, according to industry sources.

In view of intensifying US-China confrontation and Taiwan actively promoting its New Southbound Policy, many Taiwan-based suppliers intend to meet increasing capacity demand by relocating manufacturing to Southeast Asia and building new industrial clusters there to tap the demographic and geographic advantages as well as rapidly growing market demand in the region. They look to replicate their experiences in China and make Southeast Asia the next world factory that will support rising needs as the global supply chain makes transitions to accommodate "G2" (US vs China) developments. Vietnam and Thailand, neighboring China, will be Taiwan-based suppliers' first choices for their move into Southeast Asia, followed by Malaysia, Indonesia, and the Philippines. They will not include Laos, Myanmar and Cambodia in their consideration due to political instability in those countries unless they have no other choices.Some suppliers note that manufacturers choose to build new production bases in Vietnam and Thailand in part for their transport infrastructure. Being able to transport goods via their road networks will make up for the incomplete supply chain ecosystems in Vietnam or Thailand.The shift to regional manufacturing has given rise to the new trend - short supply chains. The supply chains in Vietnam and Thailand are near completion after years of effort. Furthermore, component suppliers' added demand in recent years are largely for automotive and home appliance parts, rather than ICT devices and applications, which allows them to better connect with Thailand's local industry development. Vietnam and Thailand are therefore the ideal choices for Taiwan-based suppliers foraying into Southeast Asia.Recent macro-environment changes are driving an increasing number of suppliers to invest in Vietnam. This is beginning to spur a rise in land costs and an imbalance in labor supply and demand, according to industry observers. In particular, small- and medium-sized suppliers not only face difficulty in land acquisition but also have to compete for human resources with large enterprises that can offer more attractive compensations and benefits such as Samsung Electronics and Foxconn. Suppliers planning to set up operation in Vietnam need to take a lot of factors into consideration.Thailand will be more suitable for some small- and medium-sized suppliers as it has a substantial number of migrant workers that can provide a relatively more stable labor supply. Labor turnover has also improved thanks to its recent economic developments. The Thai government has been offering incentives to drive developments in motor vehicle and electric vehicle (EV) parts as well as EV batteries, which overlap with the areas Taiwan-based manufacturers are actively expanding into. This is another factor that makes Thailand appealing to Taiwan-based suppliers.Many suppliers indicate that the COVID-19 pandemic has forced them to put off or suspend their plans to move into Southeast Asia. When they strategize about building new production bases in Southeast Asia, aside from customer requirements and supply chain considerations, they should also gain an understanding of what preferential treatments and investment incentives Southeast Asian governments may be putting forward to attract manufacturers looking to set up production outside of China as there are all kinds of different offers on the table, industry observers say.

Taiwan-based networking device assemblers continue to relocate their production lines from China back to Taiwan or to Southeast Asia, despite a recent surge in COVID-19 infections locally.James Wang, president of network communication equipment provider Sercomm, once noted that China had been rivalless until the US stepped up countermeasures, disrupting China's economic scale.Supply chains would not be relocating production out of China if it were not for the US-China trade war, and US president Joe Biden is not reversing the direction that his predecessor Donald Trump had set.Taiwan-based network communication equipment providers are of a smaller scale and can act more swiftly in response to changes. When the US-China trade conflict spread to the network communication equipment sector in 2018, suppliers flocked to Taiwan and Southeast Asia to set up production bases. According to Gemtek chairman Howard Chen, three months after the company made the decision, new production facilities were in place. Chen quipped that it was the first time he felt like a big spender. This also reflected how much pressure network communication equipment providers came under in the face of the trade war tariffs.Apart from Taiwan, Vietnam is the most important production hub to network communication equipment providers, including Gemtek, Wistron NeWeb Corporation (WNC), Arcadyan and Hitron. Among them, WNC and Arcadyan have plans to build their second facilities in addition to their current ones in Vietnam, with the new capaacity scheduled to be up and running in the second half of 2021. The new production lines will contribute to growth in the share of their capacity outside of China.According to WNC chairman Haydn Hsieh, the company's second facility in Vietnam is about 90% complete. Installation of the production lines is scheduled to start in June and they are expected to be churning out products in the third quarter of this year. WNC already has customers placing orders specifically for products to be manufactured at the new facility. WNC's Vietnam capacity will ramp up at the highest speed over the next six to 12 months and the share among WNC's total capacity will grow from 10-15% at present to 20-25% by early 2022.Aside from its second facility in Vietnam, which will begin production in the second half of 2021, WNC's second plant in Southern Taiwan Science Park (STSP) is also under construction, with equipment installation planned for the second quarter of 2022 and production to begin in the third quarter. By then, WNC will have relatively equal proportions of capacity in Vietnam, Kunshan (China) and Taiwan. With the new facilities up and running, WNC's capacity utilization will be much better in the first quarter of 2022, which will help optimize its cost structure. Arcadyan is also building its second facility, which will add to its capacity starting the fourth quarter of this year. According to Arcadyan, the construction remains on schedule despite the recent increase in COVID-19 cases. Arcadyan's new facility is planned with three times the capacity of its first plant in Vietnam. Its China capacity will not decrease as a result of the production expansion in Vietnam so the ratio between its China and Vietnam capacity will change from 70:30 to 50:50 by year-end 2021.In contrast to network communication equipment providers that are actively expanding capacity in Vietnam, notebook PC manufacturers that do not sustain pressure from heavier import tariffs have maintained their wait-and-see attitude since the late stage of Trump's term. They said that when the US-China trade conflict was escalating in 2019, notebook PC manufacturers were urged by customers to respond. They all prepared contingency plans to set up production bases in Southeast Asia or Taiwan. However, their plans remain on paper to this day.Quanta, Compal, Wistron and Inventec all have assembly lines in Taiwan. Some of the notebook PCs Compal and Inventec supply to their US customers are assembled in Taiwan. They both had plans to expand their capacity in Taiwan in 2019 but their customers did not ramp up their orders. Quanta had its Linkou, northern Taiwan plant ready while Wistron was prepared to start production in the Philippines. Neither of them have proceeded to volume production.Compal's Vietnam factory is the only one that is in operation outside of Taiwan, rolling out products for a US customer that keeps requesting for additional capacity but not at a rate as fast as what the customer had proposed earlier.According to the manufacturers, notebook PCs sell at razor-thin profit margins and include more than 1,000 components, making it difficult to shift production. Their customers mostly choose to cope with changes by staying put to avoid running up costs.

X-ray imaging has existed for more than 120 years, but a Canada-based start-up, KA Imaging Inc, is trying to be a game changer for the long-established market. With the world's first portable dual-energy detector, the company aims to revolutionize the X-ray market and realize its vision of "Innovative X-ray everywhere"."It's the first time that X-ray imaging technology has achieved such a significant advance," Amol Karnick, CEO of KA Imaging, said.He explained that dual-energy X-ray works with two different types of energies inside the X-ray: one that is good at highlighting the soft tissue, and another that is good for the bones. By recovering some of the spectral information that is lost in conventional radiography, the radiologist can access two extra images: bone and soft tissue.Though dual-energy imaging is not new, the existing technology has an intrinsic problem: motion artifacts. "Our engineers were able to solve the problem by creating a unique triple-layered detector, allowing the spectral separation to take place inside the detector. Therefore, we only use one X-ray exposure to achieve dual-energy X-ray with no motion artifact.""Another important thing is that the detector was designed with a universal standard size, so that it can be used in any existing X-ray system, whether fixed, portable, or mobile," Karnick said.With these breakthroughs, KA Imaging has made portable, affordable, and more accurate X-ray machines possible.The company's product, Reveal 35C, has been approved by the United Stated and Canada. There are currently two clinical trials being conducted in Canada: one for lung cancer and one for detecting pneumonia (including COVID-19), both with promising initial results."For patients who cannot be moved, Reveal can provide essential care diagnostics. Three images allow doctors with varying abilities to make quick and accurate diagnoses," Karnick explained. "In addition, the detector can make a difference in rural or remote areas where the population does not have access to CTs. Studies also show that the high sensitivity of dual energy can detect many diseases earlier, allowing better outcomes for both patients and hospitals."KA Imaging is now partnering with key opinion leaders in clinical trials for different clinical use cases to present proven results of its technology. Meanwhile, in order to expand the market, it provides a flexible business model of Hardware as a Service in addition to capital purchase with service.With more than 21 million X-ray scans performed every year in Taiwan, the company is now looking for opportunities here. "Taiwan's install base is similar to that of Canada, and Taiwan is also a center of cutting-edge medical technology, so absorbing Reveal 35C as part of its system is only natural. One of KA imaging's current investors and our manufacturer is Innolux, a Taiwanese company. KA has established a strong relationship to Taiwan.""The applications are many. For example, statistics show pneumonia as the second leading cause of deaths in Taiwan, a case study for dual energy that is already proven," said he. "We are seeking distributors and clinical partners, hoping to contribute to improving quality of care for the Taiwanese population."Canada-based startup KA Imaging CEO, Amol KarnickPhoto: Company

Pure-play foundry houses are requiring fabless chip vendors to prepay for the capacity bookings or to co-fund their capacity expansion projects. One of such cases is Qualcomm striking a six-year deal UMC in order to secure foundry support. Supply in the semiconductor sector is expected to remain tight in the foreseeable future, with IC substrate supply unlikely to see major improvements until late 2021 or 2022.Pure-play foundries expanding capacity with prepayments from clients: TSMC and other Taiwan-based pure-play foundries intend to carry out their capacity expansion projects cautiously and progressively to avoid the risk of overcapacity.Qualcomm strikes long-term deal with UMC, sources say: Qualcomm is believed to have struck a long-term deal with United Microelectronics (UMC) under which the pure-play foundry will provide capacity support for the chip vendor over six years, according to industry sources.IC substrate supply to stay constrained in 2021-2022: The global supply of IC substrates will not see major inprovement until late 2021 or 2022 when Taiwan-based suppliers' additional capacity comes online, according to industry sources.

Memory prices have been rising, and contract quotes for DRAM and NAND flash are expected to see double-digit increases in the third quarter of 2021. Backend service providers are also looking to raise fees in the third quarter to reflect rising material costs. In the handset market, sales in China and India may be weak, but the makers in the handset supply chain are still optimistic about the market in the second half of 2021.Memory contract prices to see double-digit gains in 3Q21: DRAM and NAND flash memory contract prices are set to register double-digit increases in the third quarter of 2021, according to industry sources.OSATs may further hike service quotes in 3Q21: Taiwan OASTs are expected to enforce a new round of quote hikes in the third quarter of the year to reflect ever-rising prices for raw materials particularly for QFN wire-bonding process, according to industry sources.Handset supply chain makers remain optimistic about 2H21: Taiwan-based upstream and downstream handset supply chain makers have remained optimistic about their business outlook for the third quarter of 2021 despite a slew of negative developments, including shortages of components, tight capacity, and rising material prices.

Qualcomm has just launched its Snapdragon 778G made using TSMC's 6nm process. It is expected to be more popular among midrange smartphones because of its higher price-performance ratio than the 5nm-made 780G series. Taiwan-based backend houses are now gearing up for the latest Qualcomm mobile SoC. In the car industry, business opportunities for smat auto lights are rapidly emerging, and Taiwan has a good chance of playing a major role in the sector, according the CEO of Silicon Application Corp (SAC).New Qualcomm 5G SoC built using TSMC 6nm process: Qualcomm's just-unveiled Snapdragon 778G chipset with integrated X52 5G modem is manufactured using TSMC's 6nm process technology, and is designed mainly for midrange 5G-capable Android smartphones, according to industry sources in Taiwan.Backend houses gearing up for new orders from Qualcomm: Taiwan's leading OSAT ASE Technology and its affiliate Siliconware Precision Industries (SPIL) reportedly will offer backend services for Qualcomm's newly-released Snapdragon 778G 5G mobile SoC targeting midrange 5G Android smartphones, and they are gearing up for a ramp-up in orders from the US chip vendor, according to industry sources.Taiwan at last mile to smart auto light market, says SAC CEO: Global business opportunities for smart auto lights are emerging rapidly, and Taiwan stands a good chance to benefit significantly as a major supply source if the semiconductor, optics and AI software sectors can be effectively integrated, according to Jimmy Chen, CEO of Silicon Application Corp (SAC) Group.

Combined revenue of Taiwan's top-3 pure-play foundries are expected to grow 2% sequentially to US$15.19 billion in the second quarter of 2021, according to Digitimes Research.Combined revenue of TSMC, United Microelectronics (UMC) and Vanguard International Semiconductor (VIS) came to about US$14.9 billion in the first quarter of 2021, up 2.2% on quarter and hitting a record high, Digitimes Research indicated.Digitimes Research credited the particularly strong first and second quarters this year to continued strong IC demand for notebooks and other devices enabling remote work and education, and other stay-at-home activities.Digitimes Research forecasts that Taiwan's top-3 foundries will see their combined revenue reach US$63.1 billion in 2021, a nearly 20% rise from its previous estimated US$61.7 billion.

UMC has plans to invest vast sums to expand a 12-inch fab site in southern Taiwan, and eight of the foundry's major clients have already reserved parts of the additional capacity for a six-year period. Enterprise PC demand is likely to rise in second-half 2021 as more people are expected to return to work at their physical offices, thanks to the lifting of pandemic-induced lockdowns. In China, demand for 5G smartphones has been growing, and 5G phone shipments into the local maket reached more than 91 million units in th efirst months of 2021.UMC gains commitments from major clients for long-term demand: Pure-play foundry United Microelectronics (UMC) has received commitments from eight of its customers for capacity demand for a six-year period, according to industry sources.ODMs optimistic about enterprise PC demand in 2H21: Enterprise PC demand is expected to pick up substantially in the second half of 2021, as COVID-induced lockdowns in Europe and the US are being eased, according to sources at Taiwan-based ODMs.China 5G smartphone shipments to top 100 million units in Jan-May: A total of 91.27 million 5G smartphones were shipped to the China market in the first four months of 2021, according to data from the China Academy of Information and Communications Technology (CAICT).

Sintrones' in-vehicle computers offer a complete solution for in-vehicle applications, including driver behavior monitoring and self-driving capability. They have high flexibility, support a wide range of peripherals and connectors, and can be adapted to various vehicle management systems. Common use cases include: fleet management with GPS requirements, vehicle maintenance systems, and computing for autonomous vehicles.The key highlight of Sintrones' in-vehicle computers is their easy-to-use and intuitive interface, which is highly suitable for self-driving cars, public transport, and other applications that require large capacity systems while maintaining functional simplicity. What's more, these systems can manage the capabilities of the inner components of vehicles to accurately assess and track the state of hardware and software, usage status, and operation of all of the fleets.Among industrial PC manufactures in Taiwan whose core business is in-vehicle computers, Sintrones stands out because of its expertise regarding in-vehicle computer hardware design and manufacturing. They have accumulated years of practical experience and business relationships with end users, which have helped them gain valuable first-hand interactions and insights from countless customers. Sintrones have continuously challenged their own design capabilities for creative inspiration, and eventually rolled out products optimize for in-vehicle environments and usage, achieving impressive results. Since its establishment in 2009, it has continued to accelerate its growth. In 2019, it was successfully became a public listed company in Taipei Exchange.Technological progress for communication systems, driving in-vehicle computers' growthSintrones' Account Manager of the Greater China Region, Juergen Ko, explained during an interview that the development of in-vehicle computers began with integrated systems that incorporated GPS and 3G communication technologies. Back then, Europe was a major region, and also where Sintrones began and developed its business, first by setting a firm foothold in the region with Finland's taxi fleet management, followed by applications in various commercial vehicles such as buses, trucks, taxis, and even trains, etc., which began to sprout and grow rapidly.Take 4G for example, in-vehicle applications have high demand for Power over Ethernet (PoE) technology. Thanks to the application of Internet of Vehicles (IoV), IoT devices were all , including IP cameras. PoE played an important role by solving power supply issues while greatly reducing wiring complexity, with that, in-vehicle monitoring, troubleshooting, and Internet services became mainstream. Although the market was fragmented in its early days, and the difference between requirements among different applications was vast, Sintrones still seized the opportunities for growth, offering specialized custom-made in-vehicle computers for these industries.5G applications sparked a new type of competition for in-vehicle computersWith the advent of the 5G era, public transport systems introduced smart applications en masse, realizing various benefits of living in a smart city, such as bus tracking apps, which allow people to catch it right on time, or traffic control for ambulances which reduces the chance of traffic delays and saves precious time. Both of these applications are backed by in-vehicle computers.The requirements of smart applications center around artificial intelligent (AI), and with the brand new lineup of 5G communication modules and GPUs, in-vehicle computers are on the same track with the future development of next-gen electric vehicle applications. Although the high-diversity, low volume nature of product specs continues to challenge our engineering teams' design flexibility and customization capabilities, the gross margin is over 30%, so the profit structure is relatively stable compared to other electronic manufacturing service industries in Taiwan.According to Manager Ko, in order to keep up with the advent of 5G applications, Sintrones EBOX-7000 series has built-in hot swappable SIM card auto activation modules, which offers Dual SIM Dual Standby, allowing end users to easily switch between SIM cards. The EBOX-7000 series also supports different 5G telecom service providers, offering users the best online experience. Thanks to this, Sintrones has set a new benchmark in the highly competitive 5G application market.Wide temperature and voltage range, positioning us as the hidden campionThe competitive edge of in-vehicle computers is closely related to the engineering teams' experience in design, from wiring layout to thermal design, and customers expect every bit of the details to work in unison. Take Sintrones' entry into the snowplow vehicle market for example. One of the global top three snowplow providers separated from the Mercedes-Benz Group, which also happened to be Sintrones' client, and mentioned that in the presence of heavy snow, thickness detection with GPS and real-time readiness of vehicle and personnel information are required for proper plowing; in such cases, resource allocation efficiency and safety monitoring abilities are crucial for a successful operation. Now, when we compare the taxi fleet in the distant desert area of Dubai and this case, it is clear that both rely on the wide range of temperature design capabilities required to adapt to the extreme environments of the polar region and desert.The biggest difference between in-vehicle computers and common industrial computers is their power input design. Since the voltage supplied to other electronic devices when a car starts up is unstable, our engineering team needs to devise a multi-stage delayed booting mechanism, where the computer will react differently based on the distinct characteristics of cars. For example, a design where the computer is formally booted 5 or 10 seconds after the car starts up once the voltage supply is stable. Moreover, the 9-to-36-volt wide voltage plays a key role in adapting to the voltage fluctuations in cars. The rising trend of electric cars has brought a different set of requirements for power management and control, and Sintrones has already actively deployed applications in the electric vehicle market.Aiming at electric vehicle applications in the coming ageTaking a look at Sintrones' clientele, we can see that business in the quantity-oriented taxi fleet management is going strong. As for cases that serve as indicators, aside from the application in German snowplow vehicles, the application in AI smart buses in Singapore is a key milestone for our high-grade model. This case combines AI with unmanned autonomous vehicle systems by integrating ADAS and using GPUs' high-speed computing capabilities to predict road conditions. At the same time, it meets the various needs of vehicle emergency response; it is currently one of the best models in high-end applications.Our AI applications have also entered the Japanese market. Currently, a key example is a case with a client who specializes in the manufacturing of excavators and construction machinery, where are used as integrated applications in machinery safety warnings and GPS linkage. After years of continuous efforts, Sintrones received wide praise from our clients in the Japanese market. This is now our largest market in Asia, and also one of our key growth-driving forces worldwide.With electric vehicles becoming all the rage around the world, we maintain business relationships with all of the major players, whether it's Foxconn's Make It Happen (MIH) Electric Vehicle Alliance in Taiwan, or mainstream electric vehicle manufacturers from Europe, the U.S., and China. Take France's leading autonomous vehicle manufacturer, Navya, as an example; our collaborative product development plan is only the first of many to come. Regarding the business prospects of in-vehicle computers, as the market continues to undergo huge and drastic changes, Sintrones, who specializes in hardware design and manufacturing, will continue to prioritize promoting this technology and maintaining close contact with frontline system integrators and software vendors. Moreover, by sharing resources with leaders from other industries, such as an alliance with AUO, we will offer more comprehensive solutions to our clients. This is Sintrones' best strategy for our future success.Sintrones' Sales Manager of the Greater China Region, Juergen KoPhoto: CompanySintrones produces flexible high-performing industrial computers, satisfying various smart edge computing requirementsPhoto: Company