Apple's new 5G smartphone series is expected to see significant sales momentum, with shipments for iPhone 12 devices standing a chance of hitting as many as 80 million units by the end of 2020, although the US vendor is looking to build an inventory of 71-75 million units for this year. Foxconn is the major assembler for the iPhone 12 series. The Taiwanese ecosystem remains a major partner for Apple, as its PCB makers will supply 60% of the SLPs for th enew iPhones. Shipments of iPhone 12 lineup may top 80 million units by year-end 2020: Shipments of Apple's just-unveiled iPhone 12 lineup may reach as high as 80 million units by year-end 2020, as the vendor's more affordable pricing strategy is likely to entice users with older iPhones to upgrade, according to market observers.Foxconn remains major iPhone assembler: Foxconn Electronics (Hon Hai) has secured the bulk of orders for the new iPhone 12 series and will see its shipments for the new Apple smartphones peak through the first quarter of 2021, according to market sources.Taiwan PCB makers obtain 60% of SLP orders for new iPhones: Zhen Ding Technology, Compeq Manufacturing and Unimicron Technology have together landed nearly 60% of total substrate-like PCB (SLP) orders placed by Apple for its new iPhone 12 series, according to industry sources.

Taiwan has to concentrate resources in developing a smart medical care sector with its own characteristics and international competitiveness, with electronic medical devices and telemedicine among its focus, according to Steve Kuo, president for National Yang-Ming University.For electronic medical devices, resources need to be focused on domain knowledge in selected medical areas and integration with computer-aided interpretation systems and other medical hardware/software, Kuo said.Taiwan-based ITC makers stand a good chance of stepping into electronic medical devices and they can help developers of such devices, Kuo said.Cross-sector integration of domain knowledge concerning medical information, public health, information engineering and other related areas is crucial to development of electronic medical hardware/software, Kuo indicated.Yang-Ming and National Chiao Tung University will be merged in 2021, and the combination of the former's medical expertise and the latter's focus on ITC science and technology is expected to create synergy, Kuo said.National Yang-Ming University president Steve KuoPhoto: Michael Lee, Digitimes, October 2020

Taiwan Association of Machinery Industry (TAMI) and Taiwan Electrical and Electronic Manufacturers' Association (TEEMA) have jointly established a smart manufacturing alliance to help local makers and promote digital transformation, in a bid to turn the country into a high-end manufacturing hub in Asia.The US-China trade war and coronavirus pandemic are changing the global supply chains and digital transformation is inevitable for Taiwan's manufacturing sectors, TAMI said. But about 97% of Taiwan's manufacturers are small- to medium-size ones, and digital transformation means huge costs for them, TAMI noted.The Taiwan Smart Manufacturing Alliance is committed to facilitating digital transformation of equipment makers and small- to medium-size manufacturers, it said, adding the new alliance is so far the largest cross-industry partnership for promoting smart machinery.Inaugural ceremony for Taiwan Smart Manufacturing AlliancePhoto: TAMI

Many IC components have been in short supply due to insufficient foundry support. Now foundry houses are asking their fabless IC clients to book well in advance for capacity for 2021 to make sure they have enough support. The components shortages are already sending driver IC and MOSFET prices rising. Their prices are expected to increase by more than 10% in fourth-quarter 2020. Memory sport market prices are also rising, but SSD and DRAM module sales in China are actually disappointing.Taiwan IC design houses urged to book foundry capacity for 2021: Taiwan-based IC design houses are being advised by their foundry partners to place orders for 2021 in advance to ensure sufficient capacity, according to industry sources.LCD driver IC, MOSFET prices to rise over 10% in 4Q20: LCD driver IC and MOSFET chip prices are set to rise over 10% in fourth-quarter 2020 and will continue their rally in the following two quarters to reflect tight supply and rising manufacturing costs, according to industry sources.Memory module houses see demand in China disappoint: Despite a continued rally in memory spot market prices, channel distributors in China continue to see disappointing SSD and DRAM module sales, according to sources at memory module makers.

Microsoft for Startup-Taiwan focuses on the role of matching startups with enterprises for the latter to help the former promote products and services, according to Peter Hu, CEO of the software giant's accelerator in Taiwan.The accelerator does not undertake incubation, for the development of incubation centers in Taiwan has been mature enough, Hu said. Instead, the accelerator functions as an engine to push startups into the market by helping them seek optimal cooperative enterprises and vice versa, enabling startups to realize commercialization of their products and services, said Hu, who is also technology general manger for Microsoft Taiwan.Startups usually experience three stages in development: Development of innovations in the initial stage; materialization of innovative concepts in the second stage; and commercialization of products and services in the third stage, which poses the most challenge to startups, Hu indicated.Hu noted that enterprises mostly begin by examining startups' proof of concept, which may take six months.During the examination, startups face high risks in terms of survivability and the accelerator is intended to overcome the challenge, Hu noted. The accelerator screens startups mainly based on maturity of their technology and business models, and recommends qualified ones to enterprises, with Microsoft's endorsement equivalent to shortening enterprises' examination time, Hu explained.Enterprises seek startups for cooperation based on three main factors: Whether the products and services are reliable and whether there are information security issues; whether the technology framework is mature; and whether the technologies involved violate intellectual property rights, Hu indicated.The accelerator selected 14 startups in 2019 and another 18 during May-September 2020. The 32 startups have attracted total investment of NT$380 million (US$12.9 million) from cooperative enterprises and there have been 61 collaboration projects with business opportunities worth over NT$530 million..Microsoft for Startup-Taiwan CEO Peter Hu (left) Photo: Shihmin Fu, Digitimes, October 2020

Quadlink started out as a fabless IC design house developing wireless communication chips, the manufacturing of which was outsourced to TSMC. Instead of competing head on against international semiconductor giants, Quadlink later decided to steer its course toward IoT systems with a focus on applications in fundamental industries such as agriculture and aquaculture. Through discussions with and guidance from Lee-Shing Fang, former director general, National Museum of Marine Biology and Aquarium and fish farming experts in Taiwan, Quadlink realized how valuable water quality monitoring systems are to the domestic fish farming industry and therefore set its heart on developing the Aquadlink Smart Aquaculture Application System.According to Quadlink general manager Cheng-Hsun Tsai, combining wireless communication technologies and sensors, IoT solutions for smart applications have become the center of market attention. Focusing efforts on developing a smart water quality monitoring system, Quadlink has created its Aquadlink Smart Aquaculture Application System, which has been successfully deployed at fish farms to help owners and operators reduce unpredictable risks and minimize losses. In consideration of the fact that fish farms generally have large open spaces for solar panel installation, Quadlink designs the system to be powered by solar cells. The market responds more favorably to Aquadlink with the incorporation of green energy and power efficiency designs. Connecting to a cloud platform, Aquadlink reports fish pond water quality data every five minutes and can issue alerts to farm operators' mobile phone app, allowing them to stay on top of water conditions at all times and thereby effectively lower costs, risks and accidental losses.Fish farmers in Taiwan often risk losing their fortune when extreme weather or natural disasters occur just before harvest season. The thought of helping fish farmers overcome such difficulties motivated Tsai's team to develop a system that monitors actual water quality in real-time to help fish farmers stay on top of pond conditions. Rather than relying on experiences or solutions passed down from one generation to the next, fish farmers can now harness the power of scientific data and build a smart aquaculture future.Aquadlink is a name that reflects the company's hope that the system will help fish farmers connect resources. The system monitors water conditions in real time, collecting data such as dissolved oxygen to decide whether to turn on the aerator to enhance fish farming efficiency. Featuring a smart power distribution system named Smart Equipment Control System, it overcomes power distribution challenges at fish farms. Furthermore, Aquadlink is built in with 4G/LTE connectivity while supporting LoRa wireless communication. Hundreds of Aquadlink systems have been put to practical use since its launch in 2016.Referencing a successful use case of Aquadlink, Tsai talked about a fish farm located in a smart fishing village in Hsinchu that raises white shrimp and mullet. The pond water level quickly rose by one-third due to a sudden downpour, causing a huge change to the pH value. On receiving an alert, the owner promptly decided to add probiotics into the pond to improve the water condition. Aquadlink played an instrumental role helping the fish farmer successfully handle the crisis.Aquadlink is mainly used by fish farmers that target blue ocean market opportunities by raising species with differentiating values such as white shrimp, lobster, eel and rare grouper. Having used Aquadlink for an extended period of time, the fish farmers have accumulated a wealth of data throughout the breeding cycle, which becomes important reference. Aquadlink, capable of monitoring and predicting, serves as a crucial tool for aquafarm management. As emergencies at fishing ponds more often than not occur in the middle of the night, a smart aquaculture system is an indispensable aid to fish farmers.Foraying first into Brunei and IndonesiaAquadlink is available at a price that is only one-tenth of what an imported system costs, according to Tsai. Such a compelling cost advantage enables Aquadlink to successfully foray into Southeast Asia, where aquaculture is widespread and flourishing. Aquadlink is currently used to help manage 600 hectares of fishing ponds in Brunei, which is almost as big as the Hsinchu Science Park. The initial success is exciting. Thanks to overseas Chinese communities, Aquadlink's market footprint has now expanded to Sumatra in Indonesia, the Philippines and Myanmar with promising outlook for developments in Vietnam and Malaysia.Quadlink will continue to enhance the algorithms for Aquadlink. It also plans to commercialize its technology of capturing clear underwater images while improving its product cost-performance ratio. Tsai expressed gratitude to the Ministry of Economic Affairs' Smart City Program for providing research funding that allowed Quadlink to complete its product R&D and launch on schedule. Going forward, Quadlink hopes to share Aquadlink's success with fish farmers. By offering Aquadlink at an affordable price and through subsidy programs, Quadlink endeavors to make Taiwan an exemplary application field for Aquadlink and drive a smart aquaculture future.

Components shortages have hampered supply of Chromebooks, which have seen strong demand from users staying at home in pandemic lockdowns. But the shortages are expected to start easing in November as demand for conventional notebooks drop, freeing up components supply for Chromebooks. Pandemic-driven demand is also expected to give iPad shipments a more than 20% on-year growth in 2020. Robust demand from the IT and TV sector is also sending LCD panel pricing up. The LCD price rally will last till December.Chromebook shortages may ease starting November: The global supply of Chromebooks has been tight due to component shortages, which nevertheless are expected to ease slightly starting November, according to sources from ODMs.Overall iPad shipments to grow over 20% in 2020, says sources: Thanks to the coronavirus pandemic, Apple's overall iPad shipments are likely to experience an over 20% on-year growth in 2020, according to sources citing the supply chain's estimation.LCD panel prices to keep rallying through December: LCD panel prices will continue rallying through December 2020 on robust demand from TV and IT sectors, but are likely to undergo a downward correction, albeit slightly, in the first quarter of 2021, according to industry sources.

Demand for high-end CIS components has weakened in the wake of the US trade sanctions against Huawei. But suppliers are ramping up CIS shipments to the midrange segment to meet growing demand from other Chinese handset vendors, such as Oppo, Vivo and Xiaomi who are keen on cannibalizing Huawei in their domestic market. The Huawei woes are affecting many of its suppliers across many different segments, with handset lens modules makers being amoing them. Largan has disclosed that its production in fourth-quarter is unlikely to reach full capacity. For the memory sector, spot prices are expected to rise through at least the end of October, according to memory module maker Adata.CIS suppliers shifting focus to midrange parts: Major CMOS image sensor (CIS) suppliers including Samsung Electronics and OmniVision reportedly have been pushing sales of midrange CIS components to Chinese handset brands due to increasing market demand, according to industry sources.Largan unlikely to fully utilize capacity in 4Q20, says CEO: Smartphone-use lens module maker Largan Precision is unlikely to have production capacity fully utilized in the fourth quarter of 2020 mainly because a major client has cancelled massive orders for high-end models, according to company CEO Lin En-ping.Memory spot prices to rally through end-October, says Adata chairman: Memory spot prices have been rising with the rally set to continue until at least the end of October 2020, according to Simon Chen, chairman for memory module house Adata technology.

TSMC, with clients lining up eagerly for a share of its capacity support, has reported record sales for Septmber. The foundry house's 7nm and 5nm manufacturing capacity has been falling short of demand, and TSMC is likely to raise capex for expanding its advanced node manufacturing lines. Micron Technology is alo expanding its production capacity in Taiwan. The US memory vendor is already installing equipment at a new fab in central Taiwan, with construction of the Micron plant to complete by year-end 2020. For server suppliers, demand from datacenter clients is regaining momentum after a slow third quarter.TSMC likely to raise 2020 capex again: TSMC is likely to make another upward adjustment to its capex outlook this year, due to strong demand for 7nm and 5nm process manufacturing, according to industry sources.Micron starts equipment move-in at new plant in Taiwan: Micron Technology is constructing a new plant in Taichung, central Taiwan with equipment move-in already kicking off. Construction of the plant, dubbed A3, is set to complete by the end of 2020.Datacenter demand turning strong in 4Q20: Demand from datacenter operators has regained momentun after seeing a deceleration in server orders from US clients in third-qauarter 2020, according to sources from the upstream supply chain.

Global shipments of small- to medium-size TFT LCD panels will be steady in a five-year forecast period to reach 1.82 billion units in 2025, after seeing an on-year fall of 19.7% to 1.81 billion units in 2020 amid the coronavirus pandemic, according to Digitimes Research.Demand for handset panels, currently the largest application segment for small- to medium-size LCD displays, is expected to stage a rebound in 2021.Digitimes Research forecasts that global handset panel shipments will grow by a CAGR of 3.1% from 2020 to 2025, with those for smartphone applications expanding at a higher CAGR of 5.9%.However, the penetration of AMOLED in smartphone applications is set to reach 40% by 2023, giving LCD handset panels a CAGR of -0.8% during the five-year period, Digitimes Research estimates.The rise of IoT applications in industrial control, automotive, smart speakers and household appliances will make related IoT applications a growth driver for small- to medium-size LCD panels starting 2022. Digitimes Research estimates shipments of small- to medium-size LCD panels for IoT applications to grow by a CAGR of 6.1% in 2020-2025.