TSMC has been fast expanding advanced node manufacturing capacity, requiring strong support from ASML for EUV litho equipment. The world's top pure-play foundry house has already placed orders for at least 13 EUV sets with AMSL for 2021 in line with its 5nm capacity expansion and its advance to 3nm production. The world's top EMS provider Foxconn has also shown ambitions in the semiconductor sector. It has confirmed that it has entered a bid to take a stake in Malaysia-based 8-inch foundry house Silterra. In the IT market, server demand has been robust to meet pandemic-fueled stay-at-home needs. Cloud server makers expect such demand to stay strong in 2021, during which their shipments will see double-digit growths.TSMC places big EUV equipment orders for 2021: TSMC has already placed EUV lithography equipment orders with ASML for 2021 for at least 13 sets, according to industry sources.Foxconn bids for stake in Silterra, says chairman: Foxconn Electronics (Hon Hai Precision Industry) has confirmed that it has placed a bid to take over a stake in Malaysia-based 8-inch foundry house Silterra, expecting the result to come out by the end of 2020.Cloud server makers to see double-digit shipment increases in 2021: Taiwan server manufacturers including Foxconn, Wiwynn, Quanta Cloud Technology and Inventec are all optimistic that their shipments for 2021 will see double-digit annual increases, largely bolstered by strong demand for datacenter applications supporting the booming stay-at-home economy.

Combined revenue of TSMC, United Microelectronics (UMC) and Vanguard International Semiconductor (VIS) are expected to grow over 3% sequentially in the fourth quarter after registering a 14.9% rise in the third, according to Digitimes Research.The top-3 Taiwan-based foundries will see their combined revenue for all of 2020 surge 30.2% on year to US$52.5 billion, Digitimes Research forecasts.TSMC, UMC and VIS enjoyed robust chip demand propelled by coronavirus-induced stay-at-home initiatives, such as remote work and distance learning, in the third quarter. Besides, Huawei's aggressive inventory build-ups prior to the US sanctions imposed in mid-September against it boosted further revenue at the foundries.TSMC, UMC and VIS are all expected to enjoy another quarter of record-high sales in the fourth quarter, driven by a pick-up in smartphone demand, as well as a ramp-up in orders shifted from China amid the escalating US-China trade disputes.The top-3 Taiwan-based foundries are forecast to see their combined revenue register another on-year growth of over 8% in 2021, thanks to a surge in in 5G smartphone penetration, and the arrival of the foundries' new capacities and a rise in their wafer ASPs.

Taiwan will focus its next wave of technology development on materializing smart healthcare, precision medicine, smart city and digital data governance by leveraging its robust semiconductor prowess to incorporate AI, IoT and blockchain technologies into diverse vertical applications, eventually embracing a smart new future featuring high-security Internet of Everything and thriving digital economy, according to Tsung-Tsong Wu, the country's minister of science and technology.Wu told Digitimes in a recent interview that the 5G traits of high bandwidth, low latency and wide connectivity, as well as 4k and 8K display screens and camera lenses with increasingly high resolution can be combined to support versatile applications in the near future, particularly allowing cost-effective remote surgery and high-performance security surveillance systems with clear facial images and multi-screen displays.Wu said the gradual availability of privacy protection regulations, growingly mature tech applications and exchanges, the relaxation of regulations governing healthcare data uses, and the incorporation of medical technology sandboxes will further help usher in massive innovation-driven business opportunities in Taiwan.He stressed that humanity and scientific technology should be closely blended and his ministry hopes to join forces with other ministries in integrating resources and building ecosystems from diverse facets such as infrastructure construction, frontier technology, talent cultivation, digital economy and digital government.IaaS, PaaS, SaaS solutions requiredBig data collection, modeling, prediction, transmission and storage as well as information security protection for diverse vertical domains all require the establishment of IaaS (Infrastructure as a Service), PaaS (Platform as a Service) and SaaS (Software as a Service) systems in addition to joint efforts by members in software and hardware ecosystems, according to Wu.He noted that the National Center for High-Performance Computing (NCHC) at National Applied Research Laboratories (NARLabs) under his ministry has teamed up with academic and industrial segments for many cooperation projects seeking to strengthen IaaS, PaaS, and standard data specs and promote them among industries.With its tech sectors and innovation ecosystem developing vigorously under the tech island chain architecture, Taiwan has been striving to create a friendly environment for startups and innovations by connecting technology and humanity, aiming to facilitate exchanges of international talent and build a fast and safe Internet of Everything with strong innovation momentum. This has attracted major cloud service giants Microsoft, AWS and Google to set up large-size datacenters in the country seeking to better capitalize on Taiwan's key position in Asia, Wu indicated.In line with around-the-clock services by these web giants, Wu said, the NCHC must also build a trust mechanism encouraging tech startups to utilize national cloud network services to process and transmit data under tight information and domain knowledge security and full data privacy.Digital data governanceIn terms of future digital data governance, the focus must be on smart healthcare offerings including generic drugs, new pharmaceuticals, medical supplies, and health and well-being promotion, and the strategy for biomedical big data concerning disease prevention, diagnosis, medicine, nursing and long-term care services should be even more comprehensively formulated, Wu said.Citing human biobank as an example, Wu said after a biobank is integrated, biomedical startups should be allowed to join efforts to catalyze a new wave of digital transformation at small- and medium-size biomedical firms and medical service and retail firms.In cultivating startups, Wu stressed that it is imperative for innovative technologies and startup teams to grow up initially in innovation parks with easy exchanges of international talent. And after their C-round fundraising, the National Development Fund can step in to assist, and venture capitalists and field experiment partners can also join forces to help the startups build international connections, he added.Wu said tech innovations usually involve high risks, which in turn also imply great momentum for success. He urged Taiwan enterprises to nurture the culture of allowing errors, withstanding frustrations and fighting on despite repeated defeats, so that they can stand out in certain pivotal segments in the next wave of tech innovations.Taiwan science and technology minister Tsung-Tsong WuPhoto: Michael Lee, Digitimes, November 2020

Apple's launch of new Macs with its own M1 chips means losses for Intel processor business. And M1 also comes as an encouragement for other Arm-based chip vendors to challenge the dominance of Intel. In the M1 ecosystem, Unimicron reportedly is the sole supplier of ABF susbstrates for the new Apple Silicon. In the gaming sector, a host of makers in Taiwan are gearing up production for Sony's PS5 and Microsoft's Xbox Series X games consoles. Apple M1 threatens Intel: Apple's Arm-based M1 processor featured in the new MacBook Air, MacBook Pro and Mac mini is expected to challenge Intel's dominance in the notebook CPU market in the long term, according to sources from the notebook upstream supply chain.Unimicron reportedly sole ABF substrate supplier for Apple M1 SoC: Taiwan's Unimicron Technology reportedly is the sole supplier of ABF substrates for Apple-designed M1 chipsets powering its just-unveiled new MacBook series.Taiwan supply chain bracing for new-generation game console boom: Taiwan supply chain players are gearing up for the game console replacement boom to be triggered by Sony's new-generation game console PS5 and Microsoft's Xbox Series X, according to industry sources.

TSMC is expected to end the year 2020 with impressive shipments, revenues and profits, driven by robust 5nm and 7nm chip demand. The foundry house is keen on expanding capacity for its advanced node manufacturing processes, and it has just announced a US$3.5 billion budget for its US fab project. Meanwhile, tight supply of IC substrates, partly the result of a recent fire that damaged facilities at Unimicron, has sent prices up shaply.TSMC 4Q20 sales likely to beat guidance: Pure-play foundry TSMC is expected to see its fourth-quarter revenue outpace the guidance given in mid-October, driven by additional 5nm and 7nm chip output, according to industry sources.TSMC board approves US$3.5 billion investment for US fab project: TSMC has allocated a US$3.5 billion budget for setting up a subsidiary in Arizona, where the pure-play foundry plans to build a wafe fab using 5nm process technology.IC substrate quotes rising 20-40% amid tight supply: A new wave of price hikes for high-end IC substrates, ranging from 20-40%, has emerged following a recent fire damaging a plant of Taiwan's Unimicron Technology, with clients rushing to vie for more capacity support from other suppliers by offering higher prices amid increasingly tight supply, according to industry sources.

It comes as a surprise that Pegatron, long being a manufacturing partner for Apple, has been penalized by the US client for employing student workers reportedly at its iPhone 12 assembly lines. But the incident highlights the pressure of Pegatron and others from severe labor shortages in China, compounded by the coronavirus pandemic. Pegatron has maintained that it is confident it can make improvements, despite speculation about the possibility of Apple removing its from the iPhone supply chain. Meanwhile, Taiwanese top pure-play foundries have reported strong sales for October, with TSMC's revenues staying above NT$100 billion for fifth consecutive month.Pegatron violation highlights iPhone 12 supply chain pressure, say sources: Pegatron's alleged violation of Apple's supplier code of conduct by using student workers was probably the result of needs to fulfill strong orders for for iPhone 12 amid a serious lack of labor in China that has been compounded by the coronavirus pandemic, according to industry sources.Pegatron woes spark replacement speculation: Pegatron, reportedly suspended by Apple from new business deals, could be replaced by other makers, such as Foxconn, Luxshare and Wistron, should it fail to remedy the violations of the US client's suppliers code of conduct, but replacing Pegatron mahy not be as easy as it sounds, according to market observers.TSMC October sales stay strong: Pure-play foundry TSMC saw its monthly revenue stay above NT$100 billion (US$3.5 billion) for the fifth consecutive month in October 2020.

In the "Insights 2020: Women in Startups" virtual forum co-hosted by Qualcomm Incorporated and Taipei Computer Association (TCA) on October 15, Varsha Tagare, senior director, Qualcomm Technologies, Inc and managing director, Qualcomm Ventures, and 500 Startups Venture Partner in Taiwan Jackey Wang, told the audience that there is no better time than now to start a business."Be bold and go for it," Tagare encouraged people who are thinking about starting up their own business to take the plunge. "Software development resources are more readily available today, with the ability to reach customers through smartphones and laptops."Jackey of 500 Startups indicated that the Startup Ecosystem as a whole is much better than 10 years ago, or even earlier. It is rich with resources for entrepreneurs to leverage, not only from the governments and private sectors such as corporate investors, but also from successful entrepreneurs who want to give back.Two female entrepreneurs also participated in the panel to offer their experiences and insights in their startup journeys. Jiajia Yeh, co-founder and CEO of Nestech, and Aardra Kannan Ambili from RIoT Solutions, shared what inspired them to come up with ideas to solve people's problems and improve quality of lives. They both agreed that curiosity, passion and flexibility are important traits as entrepreneurs. Their suggestions and advice for people who are experiencing bottlenecks and difficulties in their entrepreneurial endeavors are: stay focused, re-imagine problems to find different answers and be open to feedback while also learning from past experiences.Although it might seem counter-intuitive, the panelists unanimously said that it does not require a technology background for women to run a tech company or even to enter the tech industry.Tagare said technology can be regarded as a tool, not necessarily an end-result. She stressed that a good start-up idea can use technology in many fields, such as medicine, or babies, or anything of passion and interest for an entrepreneur.Wang, who herself graduated from UC Berkeley and started her career as a software engineer, said technology is a helpful tool, a language and logic to understand different information and different people, even in retail. "But there is no limit, no restriction for being a tech entrepreneur. You don't need to have a formal degree, even all of us have transitioned from different fields into technology." Wang also urged entrepreneurs in Taiwan to think big, aim big, "When you think about a project, instead of just thinking about the local market, try target the global market and solve global problems while leveraging resources here."Yeh, who had spent more than 10 years in China and Vietnam as a marketing and sales manager to traditional industry companies, echoed with Jackey and stressed that passion is what matters. Aardra from RIoT Solutions, which created a non-contact baby monitor to solve problems of parents with new-born babies, encouraged the women in the audience that "no one knows everything, but there is always so many problems waiting to be explored and solved".How would female entrepreneurs and venture capitalists differ from their peers of the other gender? Wang said women think differently from men, so would contribute different perspectives. She stressed that women have a lot of qualities that the technology industry can leverage, such as empathy in humanity, interpersonal knowledge of how the world works, and are closer to real users of products and services. Aardra from RIoT Solutions believed that women taking part in the startup system is empowering the equity of genders. "Women in ownership will definitely increase equity and opportunities," she said.However, Wang opined that when it comes to investments, the standards are all the same for everyone. "Although women seem to have communication and coordination skills as an advantage, entrepreneurs all need to have those set of skills, such as communication, coding, or being bold. And those who do have those skills are more likely to succeed in getting funded or building up a team."The inspiring forum attracted more than 200 people who had registered and watched online on YouTube and Zoom. Tagare attributed "amazing stamina" and "strong family support as an anchor" as two important qualities in common for successful entrepreneurs. Though she repeatedly mentioned that starting up a company at early stage is a very difficult and strenuous journey, she iterated Qualcomm Incorporated's commitment in supporting women entrepreneurs, and providing the framework and management capability to train startups, in terms of funding, labs, go-to-market know-how, etc.The Qualcomm Design in India Challenge and the Qualcomm Innovate in Taiwan Challenge (QITC) are two key examples for giving entrepreneurs opportunities to come up with brilliant ideas and help bring them to fruition. The QITC 2020 Finale is scheduled to be held on the afternoon of November 11.Tagare is a managing director at Qualcomm Ventures. She oversees a US$150m fund dedicated to India and cross border Digital Enterprise investments for Qualcomm Ventures, and previously worked at Intel Capital to manage global equity investment in mobile technology.Qualcomm Ventures was established in 2000. It has over 150 companies in its portfolio and focuses on investing in areas such as 5G, artificial intelligence (AI), auto, Internet of Things (IoT), networking, enterprise, and digital health. It celebrates a track record of 11 unicorn (startups with valuations of about US$1 billion) exits in the last five years, including Affirmed Networks, Inc (acquired by Microsoft), Zoom Video Communications, Inc, Cloudflare, Inc, Advanced Micro-Fabrication Equipment, Inc. (AMEC), Xiaomi Corporation, Mobike Ltd, Ring Inc, 99 Taxis, Cruise Automation, Inc, Thunder Software Technology Co, Ltd (Thundersoft) and FitBit, Inc.Women in Startups: Jiajia Yeh of Nestech (left to right), moderator Hannah Chou, and Jackey Wang of 500 Startups TaiwanPhoto: Judy Lin, Digitimes, October 2020

Tight foundry capacity has constrained semiconductor supply, with PWM ICs in particularly serious shortages. The IC shortages are delaying shipments of end-market devices that are badly needed to support stay-at-home activities. In response to the robust demand, Microsoft has increased orders for its Surface series notebooks with its ODMs. In the semiconductor sector, top foundry houses' development of advanced packaging technologies will not undermine their partnerships with backend service providers, according to an Amkor executive.Power management chips in severe shortages: The global supply of ICs demanding 8-inch wafer fabrication services has been tight, with shortages of power management chips (PWM IC) being particularly severe, according to industry sources.ODMs see rising orders for Surface notebooks: Microsoft has placed brisk orders for its Surface series notebooks, but component shortages remain an issue for the supply of the devices, according to sources from the upstream supply chain.Top foundries to maintain tight partnerships with OSATs, says Amkor executive: Leading foundry houses are mostly partners rather than competitors for OSAT firms despite their aggressive deployment in advanced 3D IC packaging solutions, according to Amkor Technology Taiwan president Mike Ma.

Small- to medium-size manufacturers are important to Taiwan's economy, but most of them lack the human resources and cannot afford the expensive equipment and services needed for digital transformation. That is where Analytics-as-a-Service (AaaS) can help them, according to Chien Chen-fu, director for Artificial Intelligence for Intelligent Manufacturing Systems Research Center (AIMS) at National Tsing Hua University.Chien, in a recent interview by Digitimes, explained how AasS is essential for such firms to make flexible decisions and upgrade to smart manufacturing.Q: What is AaaS?A: Manufacturing industries in Taiwan are globally strong. But, with AI and big data analysis as tools, Taiwan-based manufacturers need smart manufacturing, flexible production and smart decision-making. What AaaS provides is algorithms for undertaking digital transformation.For example, TSMC has installed smart manufacturing algorithms on equipment at its wafer fab in Nanjing, China, to completely control manufacturing processes. While large enterprises such as TSMC and AU Optronics (AUO) are capable of establishing their own algorithms for digital transformation, small- to medium-size manufacturers can acquire customized smart manufacturing algorithms from AaaS providers.Q: Taiwan's Ministry of Economic Affairs provides substantial subsidies to government-sponsored organizations to help small- to medium-size manufacturers in digital transformation and smart manufacturing. Why are academics or private consultants still needed?A: Such government-sponsored organizations' help is on a project basis. When the subsidies are used up and the projects expire before the problems in smart manufacturing have been solved, the academics or private consultants can step in, helping address problems such as long-term maintenance of equipment. Therefore, small- to medium-size manufacturers' digital transformation and upgrade to smart manufacturing will eventually rely on private consultants.Q: How is AaaS necessary for smart manufacturing?A: In the electronics sector, Global Unichip and Faraday Technology provide analytical services for small-size IC design houses or companies which need to develop ICs. Even if manufacturers succeed in upgrade to smart manufacturing, they still need AaaS providers for technological maintenance services.Q: How do AaaS providers help small- to medium-size manufacturers? And how can 5G be helpful for Taiwan's smart machinery industry?A: Each AaaS provider has a team of experts separately specializing in IT, stock management, supply chain management, and so forth, and can save companies the trouble of seeking AI and big data analysis talent.Taiwan's manufacturing sectors have rich domain knowledge and experience, which form an advantage for developing software used in smart manufacturing. 5G can lead to faster collection of data. But if there are no algorithms available or existing algorithms are not capable enough, 5G-added value cannot be created.Chien Chen-fu, director for AIMS Photo: Bryan Chuang, Digitimes, November 2020

The US presidential race is still too close to call, but the final outcome of the election will not change Taiwanese ODM's ongoing plans of moving part of their porduction lines out of China, as tensions between the world's two superpowers are unlikely to ease anytime soon. In the semiconductor sector, 8-inch foundries are striving to expand capacity to meet strong demand. In the display sector, touch panel solution supplier TPK is bracing for weak sales in the fourth quarter amid shrinking demand for handset applications.US election outcome not to change ODM relocation plans: Taiwan-based notebook and server manufacturers are sticking to plans of moving production out of China according to customer requests, regardless of the outcome of the US presidential election, though their notebook clients have not yet placed orders with their plants outside of China, according to sources from the upstream supply chain.Second-tier foundries eyeing bigger share in 8-inch foundry market: With 8-inch wafer fabrication demand rising rapidly for chips including ultra-thin fingerprint sensors, power management ICs, MOSFET chips and display driver ICs, second-tier foundries are striving to expand their 8-inch fab capacities, according to industry observers.TPK conservative about 4Q20 amid shrinking demand for handset applications: Touch modules vendor TPK Holding has turned conservative about its fourth-quarter 2020 business results despite impressive revenue and profit gains in the third quarter, and is shifting its focus to medium- and large-size display solutions to counter weakening demand for handset applications.