The DRAM market may be heading towards demand-supply balance in first-half 2021, but warnings about shortages in second-half 2021 are being sounded by many in the memory sector, including PSMC chairman Frank Huang. In the IT sector, clients are advancing their orders for cloud servers on concerns about a repeat of the disruptions to their supply chains by COVID-19. The displays sector has already seen months of tight supply for LCD panels, which observers believe underlies a recent contract dispute between Corning and panel maker SDP.DRAM likely to be in short supply in 2H21, says PSMC chairman: The global supply of DRAM memory will likely fall short of demand in the second half of 2021, according to Frank Huang, chairman for Taiwan-based foundry Powerchip Semiconductor Manufacturing (PSMC).Supply chain sees orders for cloud servers pick up: Suppliers engaged in the supply chain for cloud computing servers have seen clients start pulling in orders in advance, bracing for a resurge in the COVID-19 pandemic that could repeat the supply chain disruptions seen at the beginning of 2020, according to industry sources.SDP-Corning dispute highlights tight supply of LCD panels: The recent contract dispute involving the supply of glass substrates by Corning's subsidiary in Japan, CJKK, to its Japanese client Sakai Display Products (SDP) highlights the severity of the short supply of LCD panels, according to industry sources.

Government-sponsored Industrial Technology Research Institute (ITRI) has developed a solution based on digital CNC (computer numerical control) to facilitate system integration and expansion of machine tools and robotic arms into work cells that carry higher product prices.Featuring openness and flexibility, the digital CNC allows introduction of value-added software to manufacturing processes and enables machine tool makers to develop proprietary software through SDK, which has helped makers develop various value-added functions such as CNC-embedded modules for simulating 3D cutting, main axis monitoring and remote monitoring, ITRI said.ITRI has cooperated with eight machine tool makers to use the solution in developing high value-added machine tools used in turning, turning plus milling and other machining processes. Through convenient integration of such machine tools into work cells, prices for a machine tool have risen from NT$1.4 million (US$48,440) originally to NT$2.0 million.

In terms of the maturity of the startup ecosystem and digital economy among Southeast Asian countries, Singapore is the leader, followed by Indonesia, Malaysia and Vietnam, according to AppWorks partner Jessica Liu.Southeast Asia is often associated with demographic dividend, especially Indonesia, Vietnam, and the Philippines. However, there are only 5.8 million people in Singapore, and when it comes to the digital economy, Singapore is more concerned with the development of core tech, such as AI, Industry 4.0 and blockchain, said Liu, who leads the accelerator's efforts in Southeast Asia and the region's burgeoning blockchain ecosystem.Singapore has reached a high level of digitization, while many of its neighboring countries still rely on paper, and their progress of digitization is relatively slow. As a result, most of Singapore's startup teams, unless they specifically target other Southeast Asian markets, are usually R&D and technology oriented, while others are usually very consumer oriented and focus on overseas markets, she said.On the surface, Singapore's small size seems to be an inherent disadvantage, with a total population of just over five million, while Indonesia has five million newborns each year. The small population makes it difficult for Singapore to find enough technology talent, which is why its companies are keen to recruit talent from around the world, with some companies running R&D centers, according to Liu.Singapore-based consumer-driven digital service companies target overseas markets with big populations, and even the entire Southeast Asia. AppWorks' portfolio of investments, such as Shopback and Carousell, which also operate in Taiwan, have been focusing on the Southeast Asian market since day one, she said.Smaller countries around the world with such an inherent disadvantage, such as Singapore and Israel, have turned a disadvantage into an advantage with a broader perspective. Take the two unicorns in Southeast Asia as an example. Grab is a Singaporean company and knew from day one that the market would not be limited to Singapore, while Go-Jek started out to serve the local Indonesian market and was forced to expand into other markets later on, Liu said.Go-Jek has a learning curve to overcome in Vietnam, where Grab has been operating for many years. They provide similar services, but brand building and consumer loyalty take time, she indicated.Indonesia's booming digital economyLiu said Indonesia is where China was 5-10 years ago, and Vietnam is probably where Indonesia was 5-8 years ago. Of the Indonesian startups that I saw in 2016 and 2017, 95% would be gone in about a year. But today, the survival rate has increased, and investors have a better idea of what the teams that have a better chance of success will look like. The Vietnamese startup ecosystem is now more like Indonesia's three or four years ago.AppWorks has invested in a number of startups in Indonesia, most recently in InfraDigital Nusandara, which provides a complete billing service; in HarukaEDU, which offers remote learning; and in Yummykitchen, which provides cloud-based kitchen service.HarukaEDU works with universities in Indonesia, and anyone who completes a distance learning course at one of these universities and passes an assessment test can receive a full university diploma. As Indonesia is made up of many islands, this service allows learners in remote areas to overcome the geographical barrier, said Liu. This is in line with the Indonesian government's policy to make higher education more affordable and to improve the quality of its workforce.The US-China trade war has been relatively beneficial to Southeast Asia's economy, reshuffling the supply chains, attracting capital to Vietnam and stimulating demand. And COVID-19 has accelerated the acceptance and popularity of digital economy, such as telemedicine and digital wallets in Southeast Asia.Indonesia's digital ecosystem stands out in Southeast Asia thanks to president Joko Widodo's strong support in the past 4-6 years, which has helped Indonesia make rapid progress in terms of policies, human resources and resource allocation, said LiuIs Taiwan's digital advantage becoming a stumbling block?Taiwan is in an awkward situation, said Liu. The domestic market is actually quite strong, with sufficient suppot from the upstream supply chain and downstream logistics, which provides mid-size startup teams a comfort zone beyond which they are reluctant to expand.Southeast Asian teams usually come to Taiwan to participate in AppWorks for three purposes: first, to join a community of entrepreneurs and get help from like-minded people to lower the learning curve; second, to expand the market, because Taiwan's digital market is booming and its overall scale is still larger than six major Southeast Asian countries combined, said Liu.The third is access to talent, as Taiwan has a much better supply of software engineers and data analysts in Taiwan than in these countries, she said. In terms of IT engineering, the quality and quantity of talent in Taiwan is much better than in Southeast Asia, so both Shopback and Carousell have set up R&D centers in Taiwan to handle overall digital support and operations.AppWorks partner Jessica LiuPhoto: Shihmin Fu, Digitimes, November 2020

The DRAM market will see limited bot growth in 2021, but demand from the 5G and AI segments will be gradually rising. A DRAM supply-demand balance will be achieved in the first half of next year, according the chairman of memory module maker Adata. India has been keen to set up its IT ecosystem by seeking partnerships with Taiwanese firms, according to ELCINA, the association representing India's electronics industries.In the displays industry, Corning has dismissed media reports claiming it has violated a contract about supply glass to Japanese LCD panel maker SDP.DRAM market to reach supply-demand balance in 1H21, says Adata chairman: The global DRAM memory market will reach the balance of supply and demand in the first half of 2021, with limited growth in the overall bit supply coupled with a gradual rise in demand arising from the emerging 5G and AI technologies, according to Simon Chen, chairman for Adata Technology.'IT' partnerships: Q&A with Manik Mumar from ELCINA: India is a huge country, in terms of both its size and its potential as a production base rivaling that of China's. The South Asian country, in its bid to build up a strong ecosystem for the IT industries, has been keen to form partnerships with Taiwanese firms that are well-known for their hardware prowess.Corning dismisses claims about violating SDP contract: Corning has dismissed allegations that it has violated its contractual obligations to Sakai Display Products Corp (SDP) concerning supply of glass substrates to the Japanese client.

Mechanical motion control component maker Hiwin Technologies has developed a multi-axis robot used to hold and position endoscopes during minimal invasive surgical operation through cooperation with Chung Shan University Hospital (CSUH).The using of the robot gives stable and clear view from the endoscopes, enabling precise positioning of incision and letting surgeons be concentrated in the operation, CSUH noted.Hiwin chairman Chuo Wen-hen said the design of the robot is meant to help the surgeon, rather than introduce surgical automation.Hiwin has the core technologies - controllers, motors and decelerators - for developing and making the robot completely locally, Chuo indicated.The robot is expected to overcome current financial barriers for introducing very expensive da Vinci surgical robots and consequently reduce the corresponding charges for such surgical operation by at least 10%.CSUH has adopted the robot for minimal invasive surgical operation on gastric tumors, hepatoma, gall bladders, thyroid and breast tumors.CSUH will use Hiwin-developed robots to set up a robotic arm-based educational field for clinical surgery.

Foxconn reportedly has entered Google' datacenter server supply chain, ready to ship to the client from its plant in the US state of Wisconsin. The latest development is expected to heat up competition among server makers next year. Taiwan-based leadframe makers have also entered the supply chain for Tesla's charging piles, which promises to boost their shipments for automotive applications in 2021. The US-China trade war has prompted Qualcomm to seek closer partnerships with Taiwan's semiconductor firms, including TSMC and ASE.Competition among server manufacturers to become fiercer in 2021: With Foxconn Technology (Hon Hai Precision Industry) reportedly breaking into the supply chain for Google's datacenter servers, competition among server ODMs will be fierce in 2021, industry observers believe.Taiwan leadframe makers join Tesla supply chain for EV chargers: Taiwan-based leadframe makers including Jih Lin Technology and SDI have reportedly cut into the supply chain for Tesla's charging piles, and are poised to embrace significant increases in their shipments for automotive applications in 2021, according to industry sources.Qualcomm stepping up cooperation with Taiwan semiconductor firms: Qualcomm has strengthened its ties with Taiwan's semiconductor sector in the wake of the US-China trade war, resulting in increased orders and strong sales for related supply chain makers in 2020 despite the pandemic-induced impacts, according to industry sources.

Taiwan Integrated Biomedical Industrial Center (TIBIC), a cross-discipline smart experiment field for medical care, has started operation, according to Ministry of Economic Affairs (MOEA)As a platform for dialogue between the medical care sector and various high-tech industries, TIBIC in the Hsinchu Biomedical Science Park, allows new medical products to be trialed and tested, MOEA said.TIBIC can help developers of medical devices and materials obtain feedbacks from doctors, and integrate resources. The developers do not need to set up complete experiment fields on their own, MOEA indicated.TIBIC consists of three labs: human-machine interaction allowing doctors to give real-time feedback from using medical devices and materials; smart surgical robots for operation planning; and simulation of CT (computed tomography). There are four simulating clinical fields: general wards, surgical operation rooms, an intensive care unit and a CT room.CT lab at TIBICSmart surgical robot at TIBICPhotos: MOEA

Toshiba has maintained that it has not reached any "definitive decisions" to sell its two wafer fabs. But even if any of the pure-play foundries manage to buy Toshiba's fabs, the supply of 8-inch wafer fab capacity will remain short of demand. Global IC foundry output value is expected to go up by more than 20% in 2020 and ris further in 2021, accordig to Digitimes Research. In the IC design sector, Taiwan-based service and IP providers have seen many Chinese clients come knocking on their doors seeking support for development of CPUs in bids to unshackle themselves from reliance on US supply.Addition of Toshiba fabs unlikely to relieve 8-inch fab capacity shortage: Toshiba is reportedly seeking to sell its 8-inch fabs in the first quarter of 2021, but the global 8-inch foundry capacity shortages will still hardly be relieved even if the Japanese IDM's fabs are sold to pure-play foundry houses that look to increase their supply to clients, according to industry sources.Global IC foundry output value to rise over 20% in 2020: Output value for the global IC foundry industry is forecast to surge more than 20% in 2020, and will register another on-year growth but at a slower pace in 2021, according to Digitimes Research.China stepping up homegrown processor development: Taiwan-based IC design service and silicon IP providers continue to see strong demand particularly for high-margin CPUs from China, according to industry sources.

InnoCare Optoelectronics has disclosed its X-ray flat-panel detector has been integrated with expertise from College of Veterinary Medicine, National Pingtung University of Science and Technology, for medical care of pets.Spun off from LCD panel maker Innolux in 2019, InnoCare specializes in developing medical display panels focusing on X-ray imaging.The hardware/software integration of Mix V14C with the college's expertise in veterinary medicine can enable veterinarians to decide on optimal medical care plans for pets via diagnoses based on X-ray images, InnoCare said. InnoCare has improved processing of X-ray images and optimized operating procedures of interface for Mix V14C, the company noted.Mix V14C has obtained certification by US FDA, CE Marking and Taiwan's FDA and has been promoted for use in human and veterinary medicine, InnoCare indicated.The total number of pet dogs and cats in Taiwan will exceed the population aged below 15 years by year-end 2020, bringing an annual market value of over NT$21.7 billion (US$748 million) for pet medical care, InnoCare cited market forecast as indicating.

TSMC has held a ceremony marking the completion of the plant structure for its 3nm fab at the Southern Taiwan Science Park (STSP). The foundry house is expected to kick off commerical production at the 3nm fab in 2022. In the semiconductor backend sector, quotes for processing memory applications have gone up to reflect rising material costs. For Taiwanese researchers, they will have free access to Arm IPs, thanks to an agreement signed between the vendor and the Taiwan Semiconductor Research Institute (TSRI).TSMC 3nm fab nears completion: TSMC has held a topping-out ceremony for a new 3nm fab at its manufacturing base at the Southern Taiwan Science Park (STSP), paving the way for the new facility to kick off commercial production in the second half of 2022.Memory backend houses raise quotes on rising gold costs: Taiwan-based memory backend houses have raised their quotes for wire bonding to reflect rising raw materials costs, according to industry sources.Arm offers Taiwan research institute free access to IP: The Taiwan Semiconductor Research Institute (TSRI) has signed an agreement with Arm, allowing related Taiwanese academic and research bodies to enjoy free access to the latter's processor IPs for research purposes.