Face recognition is not only the most talked about application of artificial intelligence (AI) technologies but also a key AI strength indicator of the tech heavyweights in the global arena. A face recognition application takes in a database containing millions of faces, based on which a machine learning model is trained for use in access control or attendance management systems. It is growingly applied by government agencies, banking institutions and service industries.CB Insights' Artificial Intelligence Trends 2019 report identifies face recognition and edge computing as the two major trends with the most market strength and high industry adoption, even surpassing autonomous driving at the center of the automotive market's attention. The disruptive innovations to be enabled by face recognition applications are exciting. Papago chairman Liang-Yi Chien is well aware of how rapidly face recognition technologies and applications expand in the B2B market segment.Papago began to develop its face recognition engine in 2016. The 100% locally developed platform based on its own modules and algorithms is called "Face8," which won the 2019 Taiwan Excellence award. Integrated with customers' application programs or software, Face8 has been powering wide-ranging smart solutions to support a variety of application requirements. These solutions are being used by banking institutions, fitness clubs, construction companies, hundreds of small and medium-sized enterprises and government agencies for access control, VIP customer service and a slew of other applications.Two main advantages help Face8 broaden its application scopeAccording to Chien, building Face8 as a technology core, Papago further enhances its capability for system integration to enable better end-product performance. Face8 is able to bring a large number of face recognition applications to reality and create lucrative business opportunities based on two major advantages. The first is that Face8 is built on top of a strong AI technology foundation. It has been qualified by National Institute of Standards and Technology's Face Recognition Vendor Test. It outperforms world-class vendors in the 1:1 and 1:N tracks and is highly praised by its partners and system integrators, Chien said.The second advantage is Papago's one-stop system integration service. The software engine can only realize its benefits on top of hardware systems so only through close collaborations will the integrated solution deliver maximum performance. For example, in the case of a face recognition system for use at a fitness club, the system has to conduct training on a local database containing millions of faces as required by the customer. A face recognition process that takes one to two seconds to complete would be unacceptable to a fitness club where many members enter and exit frequently. To address this, Papago leverages edge computing to capture images and extract features, which are then sent to the cloud for identification. This reduces the time of the recognition process to 0.2 second. The impressive performance not only pleases customers, but also makes Papago's face recognition technology the most widely adopted in Taiwan, Chien said.Smart City Development Project Office helps Face8 expand into Southeast Asian marketsWith the assistance from the Smart City Development Project Office, Industrial Development Bureau (IDB), Ministry of Economic Affairs (MOEA), Papago looks to expand the market footprint of Face8 into Southeast Asia. Chien attributes the major progress Papago has made to IDB's role in facilitating capital acquisition and technological development. The first successful project made possible through IDB's assistance is a partnership with a Malaysian distributor and system integrator to build a face recognition system for use at a learning center. In addition to authenticating registered members of the learning center, the system can also identify the parents who drop off and pick up primary and middle school students at the learning center, setting an exemplary use case of security applications.Face8's debut in Malaysia will demonstrate Papago's strength to other countries in the region including Singapore, Vietnam and Thailand, facilitating its developments in Southeast Asia. Papago has established market presence and brand image in Southeast Asia with its automotive GPS navigation system for many years, Chien said, adding Papago will fuel new energy into its operation in the region by offering services enabling higher levels of customization with Face8.Papago chairman Liang-Yi ChienPhoto: Sandy Du, Digitimes, September 2020

While China's biggest foundry house SMIC is still waiting for the axe to fall, specualtion has already emerged about the next targets of the US trade sanctions that threaten to nip China's semiconductor push in the bud. China's memory makers could be the next targets. Memory ASPs so far this year have been falling on weak demand and excess inventory in the wake of the pandemic, though DRAM spot prices have remained stable. But memory ASPs stand a chance of stopping falling in first-quarter 2021. The pandemic has slowed the start of the 5G era, but Chinese telecom carriers are now renewing their 5G infrastructure construction projects, reigniting momentum for CCL suppliers.China memory chipmakers could be next US trade ban target: With Semiconductor Manufacturing International (SMIC) at risk of being blacklisted by the US government, concerns are growing about whether China-based memory chipmakers ChangXin Memory Technologies (CXMT) and Yangtze Memory Technologies (YMTC) will be the next trade ban target.Memory ASPs may stop falling in 1Q21: Memory ASPs are likely to fall through the fourth quarter of 2020, but there are signs that they will stabilize in the following quarter, according to sources at memory module makers.CCL makers to see shipments bolstered by new 5G infrastructure projects in China: Taiwan-based Iteq and Taiwan Union Technology (TUC) expect their shipments of high-frequency and high-speed CCLs for 5G base station applications to regain momentum in fourth-quarter 2020, thanks to Chinese telecoms renewing infrastructure construction projects, according to industry sources.

The global IC foundry industry output is forecast to increase 17% to US$70 billion in 2020, and rise another 6.8% in 2021, according to Digitimes Research's latest report.Despite the coronavirus pandemic and US-China trade tensions' impacts on the global semiconductor supply chain and overall demand, the output in 2020 will still be driven up by a number of factors.Demand created by stay-at-home activities is expected to remain robust in the second half of 2020, and the semiconductor supply chain has been ramping up orders to stock up extra inventory as a precaution amid tight foundry capacity.As 5G smartphones will see increased penetration rates, and new CPUs for high performance computing (HPC) applications will be launched, orders with upstream wafer foundries will continue to rise in the second half of 2020.Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung Electronics will continue expanding their capacity, unaffected the pandemic.With emerging applications such as 5G expected to take off and more advanced manufacturing process to be made available, the output value will grow further in 2021.In the next five years, emerging applications such as 5G and AI will enjoy faster growths. TSMC and Samsung will continue advancing their manufacturing processes and packaging technologies to attract IDMs such as Intel to expand outsourcing.GlobalFoundries and United Microelectronics Corporation (UMC), despite turning their R&D focus to niche manufacturing processes, are still expected to expand their deployments in emerging businesses such as IoT and autonomous driving.Digitimes Research expects the global IC foundry industry output to grow at a five-year CAGR of between 6-7% from 2020-2025 to reach US$95 billion in 2025. However, the trade brawl between the US and China remains the biggest uncertainty.

Taiwan General Textile Technology (TGTT) has developed Frontier cloud computing platform that helps shorten time taken in the entire process from design, production to launch of clothing items, according to company CEO Victor Chao.The process usually takes several months and quite often products are already out of fashion when they are launched, with 40-80% of the items ending up in the inventory, Chao noted.Frontier, leveraging Amazon Web Services (AWS) functions, enables exchange of digital textile data among all parties in the process to form a complete textile ecosystem, Chao indicated.Frontier allows suppliers to scan fabrics for cloud-based display instead of manually setting up fabric files.Frontier enables real-time communication and data exchange between textile supply chain makers, Chao said.Taiwan General Textile Technology CEO Victor ChaoPhoto: Annie Chen, Digitimes, September 2020

Taiwan Advanced Instrumentation Project (TAIP) is a project in the digital infrastructure category of the government's Forward-looking Infrastructure Development Program. It aims at promoting Taiwan's R&D, manufacture and utilization of advanced instruments. According to the program's first principal investigator and Academia Sinica academician Chung-Hsuan Chen, Taiwan imports more than NT$170 billion (US$5.86 billion) worth of analytical instruments every year. In view of the enormous market sizes both at home and abroad, the Taiwan government looks to consolidate domestic research efforts to help instrumentation industry and hopes to become Asia's No. 2 exporter of advanced instruments, second to Japan.Chen pointed out two unique advantages of Taiwan's instrument industry - flourishing developments of machinery, electronics and semiconductor industries and continuing government investments into infrastructure build-up. These will provide a solid foundation for TAIP. For example, as semiconductor manufacturing moves forward into advanced process technologies, such as the 3nm node, the production efficiency heavily relies on advanced analytical instruments to conduct high-precision tests and measurements of ultra-low level impurity materials to improve yield. Such instruments that are fundamental to process technology advances may not all be readily available on the market. This is where Taiwan's advanced instrument development teams come into play. It is also the goal that the teams are striving for. This team aims to develop novel instruments taking into account both functionality and cost advantage while enabling portability to achieve on-time and on-spot analysis for expanding world market share for Taiwan's instrument industry.TAIP: Measurement technology IP protection and control software developmentYi-Sheng Wang, researcher, Genomic Research Center, Academia Sinica, currently heads TAIP. According to Wang, the program focuses on facilitating development of advanced analytical instruments including mass spectrometers, electro-optical analytical instruments and biomedical analytical instruments. It is aimed at accelerating and broadening industrial applications of research results. The category of biomedical analytical instruments generally encompasses all testing equipment used at medical institutions. Electro-optical analytical instruments are often used for illegal drug, environmental pollutant and food safety testing. Mass spectrometry is seeing important technological breakthroughs and enjoying rapid growth in application market in recent years, making mass spectrometers indispensable for scientific tests and measurements.Wang noted that the development of advanced analytical instruments hinges on technological know-how. For example, to develop an innovative and competitive product requires a group of machinery, electronics and software experts to work in collaboration, so that the protection of intellectual property is crucial. Global advanced instrument manufacturers generally develop their products by way of system integration. They protect their core products with strong patent planning or obtaining licensing from research organizations to maintain their competitive edge. Another key point is the ability to design software that performs robust and fast data analytics. As to brand name that consumers attach great importance to, it usually cannot be built overnight but can only be crafted over time.The program has generated impressive results with multiple startup firms being formed. For example, for illegal drug testing, a National Taiwan University (NTU) team has developed a portable rapid screening device and an Industrial Technology Research Institute (ITRI) team has developed a terahertz imaging system to help the government crack down on substance abuse. For biomedical applications, an Academia Sinica team has presented a solution combining photochemistry and microscopic imaging technology to precisely capture images of specific cells, which is of great significance to biomedical and pharmaceutical researches. Moreover, an IRTI team has created an AI-enabled infrared camera system for patient care, which can actively issue alerts to reduce the chance of accidents and help boost long-term care institutions' capacity and quality. Additional research achievements include chemical analysis instruments and public safety devices, for which Academia Sinica teams are working on early-stage development and commercialization can be expected when manufacturers or brand vendors take over.Easing of regulations will invigorate the industry with resources for sustainable developmentExecuters of TAIP are making plans to enable continuing development as the program is set to complete its short-term objectives and conclude by year-end 2020. As most investors want to see a quick return on their investment, the instrument industry usually needs sustainable development. Chen suggests that the government start by easing regulations as what was done with the Act for The Development of Biotech and New Pharmaceuticals Industry to allow more flexible use of investors' funds and diverse sources of funding for the industry. Efforts should also be made to bridge venture capital funds with Taiwan's high-tech industries and build up connections that will bring bigger opportunities for Taiwan's instrumentation industry.Chung-Hsuan Chen, Academia Sinica academician (left), and Yi-Sheng Wang, researcher, Genomic Research Center, Academia Sinica (right)Photo: Sandy Du, Digitimes, September 2020

Following the announcement of an investment of NT$4.5 billion in Taiwan Tech Arena (TTA) in northern Taiwan for promoting entrepreneurship and innovation, Taiwan's Ministry of Economic Affairs (MOEA) is also set to give a boost to emerging industries in Kaohsiung, southern Taiwan.Kaohsiung has been keen on developments in artificial intelligence (AI), IoT and 5G, and economics minister Mei-Hua Wang has promised to provide assistance for them to obtain resources from investors worldwide and establish experiment fields locally to help them try out their solutions.In the long run, the MOEA is looking to turn Kaohsiung into a demonstration site for services such as smart retailing, smart manufacturing, smart medical care and AR/VR, Wang said.So far, Kaohsiung has a total of 15 startup incubators, five innovation parks and 10 co-working spaces established specifically for startups. One of the parks has already recruited 30 startups that are devoted to the development of AI, IoT, blockchain and FinTech.In the next two years, the ministry will host more matchmaking activities for startups in Kaohsiung, and from 2023-2027, it will focus more on helping the startups find international investments, Wang added.

EMS giant Foxconn and leading passive components vendor Yageo have teamed up eyeing emerging applications segments, such as digital healthcare and EV. The Foxconn-Yageo alliance will seek to incoporate the two companies' resources, as well as those of their end customers. Reports about the US set to impose trade sanctions on China's biggest pure play foundry SMIC have sent the notebook ecosystem bracing for more impacts on components supply, which has already been tight due to insufficient foundry capacity in the market. And Taikwan's 8-inch foundries are expected to raise quotes in order to reflect the tight supply.Foxconn, Yageo form strategic alliance: Foxconn Electronics (Hon Hai Precision Industry) has formed a strategic alliance with passive component supplier Yageo, combining their resources to develop solutions and services for digital healthcare, electric vehicles (EV) and other emerging device applications.US sanctions on SMIC could further disrupt notebook components supply: If the US imposes trade sanctions against SMIC - the largest China-based pure-play foundry - the already tight global supply of notebook components could worsen, according to industry sources.Taiwan foundries to hike quotes for 8-inch capacity: Taiwab-based pure-play foundries will raise their 8-inch foundry quotes by more than 15% starting the first quarter of 2021, according to industry sources.

Taiwan-based Gogolook, the developer of Whoscall app that instantly identifies phone callers to prevent frauds, has cooperated with six local banks to launch a platform for users to compare personal credit loans offered by these banks, according to company co-founder and CEO Jeff Kuo.For Whoscall, Gogolook has succeeded in using AI, machine learning and big data analysis technologies to recognize phone callers, and has extended the application to the loan platform in a bid to prevent financial frauds, Kuo noted.With users providing information including desired amounts and terms of personal credit loans, personal credit conditions, the platform can quickly display information on alternative loans based on the information, including interest rates, minimum monthly repayment, handling charges, for each bank for comparison. In addition, the platform provides online person-to-person consulting services.The six collaborative banks are Cathay United Bank, KGI Bank, HSBC Bank (Taiwan), Citibank Taiwan, Standard Chartered and O-Bank.The platform has been in trial operation for over five months, during which applicants have successfully obtained over 2,000 personal credit loans exceeding NT$100 million (US$3.4 million) in total.Whoscall has accumulated over 80 million downloads, according to Gogolook. Besides Taiwan, Whoscall is available in Hong Kong, South Korea, Japan, Malaysia, Thailand and Brazil, Gogolook noted.Gogolook co-founder and CEO Jeff Kuo (center)Photo: Sammi Huang, Digitimes, September 2020

As remote work activities are expected to continue in 2021, notebook brand vendors are now considering adopting a dual-lenses design for their commercial models because of growing need of online meetings and presentations of products. TSMC's procurement of EUV litho equipment is expected to reach a total of 55 sets before the end of 2021 as the foundry is expanding related capacity. Meanwhile prices of LCD driver ICs and MOSFET chips may increase as a result of tight capacity at 8- and 12-inch wafer fabs.Vendors may adopt dual lenses for new commercial notebooks in 2021: Notebook brand vendors are expected to adopt twin lenses for their new commercial models in 2021 to better cash in on strong demand for work-from-home applications that are expected to linger even in the post-pandemic era, according to industry sources.TSMC EUV litho equipment purchases to top 50 sets: TSMC is expected to cumulatively purchase about 55 sets of EUV lithography equipment by the end of 2021, as the foundry is stepping up its EUV process manufacturing development, according to industry sources.Driver IC, MOSFET prices to go up amid tight foundry capacity: Taiwan's vendors of LCD driver ICs and MOSFET chips are mulling raising their quotes to reflect increased costs resulting from tight capacity at 8-inch or even 12-inch wafer fabs, according to industry sources.

A total of three sets of new video coding technologies that are being formulated by related international standards setting organizations are likely to be rolled out in 2020 that will be conducive for addressing the two shortcomings related to unsatisfied compression rates and unfair licensing mechanism of current HEVC (high efficiency video coding) technology for coding and decoding of ultra-high 8K video images, according to Digitimes Research.The new video coding standards include VVC (Versatile Video Coding) initiated by JVET and MPEG-5 EVC (Essential Video Coding) and MPEG-5 LCVEC (Low Complexity Enhancement Video Coding) prepared by MPEG (Moving Picture Experts Group).EVC has a compression efficiency rate that is 50% higher than that of HEVE, and it allows developers to use related tools free of charge to develop EVC solutions or EVC encoders under a friendly patent authorization mechanism.Meanwhile, LCEVC utilizes not traditional encoding methods to reduce the complexity of existing encoding techniques and improve image quality. This technology enables service providers carry out software updates on existing encoding and decoding hardware architecture.Digitimes Research believes that VVC is likely to replace HEVC for 8K encoding and decoding and will be incorporated into the next generation of 8K TV video processing solutions. Since EVC and LCEVC can solve part of the licensing issue and the compatibility of related equipment, video service providers are likely to upgrade their related services optimized these two technologies.