TSMC's has disclosed that its 3nm process will continue to adopt a FinFET structure, but the foundry reportedly will take a new approach to its 2nm chip development, replacing FinFET with GAA transistors. Meanwhile, strong demand for high-performance CPU, GPU, AI and networking chips has booked up production capacity at Taiwanese ABF substrate makers throughout first-half 2021. Surging demand for Chromebooks in support of remote learning has created shortages soem key components, and revived orders for HDDs.TSMC 2nm GAA process development ahead of schedule: TSMC's development of 2nm process technology, which is already out of its pathfinding mode, is ahead of schedule, according to industry sources.Taiwan ABF substrate capacity fully booked throughout 1H21: Taiwan-based Unimicron, Nan Ya PCB and Kinsus Interconnect Technology have seen their ABF substrate capacities fully booked throughout the first half of 2021 thanks to strong demand for processing high-performance CPU, GPU, AI and networking chips, according to industry sources.HDD demand picking up thanks to surging Chromebook orders: Robust demand for Chromebooks from the education segment has not only led to shortages of entry-level processors and LCD panels, but also spurred demand for hard disc drives (HDDs), according to sources from the upstream supply chain.

Nvidia's GPU and AI solutions have seen strong demand from the datacenter market segment, and its acquisition of Arm should help complement the business.The acquisition of Arm is expected to facilitate Nividia's integration of its GPU and CPU technologies. In the medium- to long-term, the move is expected to help Nvidia expand into large-size cloud datacenter and edge computing server markets.Arm only has a limited share in the server CPU market at the moment, but is starting to obtain orders for cloud datacenter, high-performance computing and edge computing applications. As the architecture is having strong potential in cloud and edge computing products, combining the CPU technology with Nvidia's leadership in AI server development would make the GPU giant's new CPU platform rather competitive in AI-related businesses, Digitimes Research believes.Nvidia could also combine its GPU technologies with the CPU platform to further enhance their instruction set architecture and AI acceleration software library to develop competitive server solutions.

Machine tool maker Fair Friend Group (FFG) and Tunghai University's Industrial Smart-Transformation Center (ISTC) have jointly launched an initiative seeking to turn Taiwan into a global hub of smart supply chains, according to ISTC CEO Huang Chi-yuan.Global supply chains are being reshuffled in the wake of the US-China trade tensions and coronavirus pandemic, Huang said.Taiwan, with its comprehensive IT supply chains, excellent medical services, strong manufacturing capabilities, and geographical proximity to China, India and Southeast Asia, stands a good chance of becoming a global hub of smart supply chains, Huang noted.Different from smart manufacturing, smart supply chains link supply chain makers around the world, Huang indicated. The Re!Chain initiative aims to create a global management and coordinating center in Taiwan to link manufacturing resources around the world using cloud computing, AI, big data and IoT technologies, Huang explained.Re!Chain will also seek to help Taiwanese industries transform toward smart operations and establish international links through cross-region and cross-domain alliances, Huang noted.Re!Chain has several strategic and technological partners, including WPG Holdings, Teco Electric & Machinery, ShareHope Medicine, Ernst & Young Taiwan, Merry Electronics, CRIS, Fusion$360, and United Financial Intelligence.

AMD is making major gains in the notebook processor market in 2020, thanks to strong demand from the education sector. Notebook vendors having been seeking more support from AMD to meet the needs from the education sector, as a result of shortages of Intel processors. Strong demand for notebooks is expected to last, but shipments have been undermined by shortages of components, such as PWM ICs, which in turn have prevented notebook battery makers from fulfilling all orders. Tight supply of 8-inch foundry capacity has been blamed for the component shortages, and Foxconn is looking to secure more 8-inch foundry support. It reportedly is seeking to take a stake in Malaysia-based Silterra.AMD to grab 20% share of notebook processor market in 2020: AMD is expected to see its share of the notebook processor market reach a record-high 20% in 2020, according to market sources.Notebook battery makers fail to fulfill demand due to PWM IC shortages: Notebook battery suppliers are unable to fulfill all orders, due mainly to shortages of power management ICs, according to industry sources.Foxconn seeking to take stake in Silterra: Foxconn Technology Group (Hon Hai Precision Industry) has joined the bidding for stakes in Malaysia-based 8-inch foundry Silterra, and if it wins, the Taiwanese EMS giant will enhance support for its ecosystem, according to sources familiar to the plan.

More China-based panel makers are stepping into the development and production of OLEDoS (OLED on-silicon) display products, aiming to compete for market share with LCD and AMOLED panel providers in the AR/VR device sector, according to Digitimes Research.These Chinese firms include Kunming BOE Display Technology ( a joint venture between BOE Technology and Olightek Opto-Electronic Technology), Hefei Shiya Display Technology, Kunshan Visionox Display Technology and Semiconductor Integrated Display Technology, Digitimes Research has found.A joint venture set up by Taiwan-based AMOLED solution developer Innovative and Transformation (INT) and local investors in China's Taizhou is also set to kick off production of OLEDoS panels in 2021.OLEDoS is likely to become a transitional micro display technology in the industry's move towards micro LED from LCD and AMOLED. Micro LED may still take three more years to become mature, while global panel makers have gradually discontinued capacity expansions for LCD, and AMOLED production lines have become saturated.OLEDoS display devices come with ultra-high pixel density of up to 2,000-3,000ppi, which can improve screen effect and dizziness for using AR/VR devices, as well as enhancing the practicality of AR/VR devices under 5G environments.While US-based eMagin is developing OLEDoS panels using RGB evaporation process, INT's joint venture in China is also engaged in the development of the similar process for OLEDoS display production.

ABB, Fanuc and Kuka are showcasing new robotic models at China International Industry Fair (CIIF) 2020 taking place in Shanghai during September 15-19.ABB is showcasing IRB 1300, a 6-axis industrial robot with three payload/reach versions of 11kg/0.9m, 10kg/1.15m and 7kg/1.4m. IRB 1300 is suitable for use in limited working space, for it occupies floor area of only 0.22m x 0.22m. It can be used in manufacturing of electronics, food & beverage, pharmaceuticals, automobiles as well as logistics operation.Fanuc is exhibiting CRX-10iA, a 6-axis collaborative robot with payload of up to 10kg and reach of 1.249m.Kuka is showcasing KR4 Agilus, a compact industrial robot developed in China. KR4 Agilus features payload of up to 4kg, reach of up to 0.6m and cycle time of below 0.4 second.According to International Federation of Robotics, China has become the largest single market for industrial robots for six consecutive years, accounting for nearly 40% of global demand.

TSMC is on track to reaping impressive gains in 2020, as signficant orders from Apple will make sure the foundry house's 5nm process capacity will be fully occupied through the end of the year. And for its 7nm process, yield rates have been stable. Supply chain sources in Taiwan have questioned claims that unsatisfactory 7nm chip yield rates at the foundry house prompted Sony to cut its PS5 shipment goal. Backend houses have also confirmed that their processing of PS5 SoCs has been proceeding without any issues.Apple orders to fill up TSMC 5nm process capacity: TSMC's 5nm process capacity will be fully utilized through the end of 2020, thanks particularly to strong orders for Apple's new iPad Air and upcoming iPhones, as well as the Mac, according to industry sources.PS5 chip production issue unlikely, say semiconductor sources: Claims about TSMC having yield rates issues with its 7nm process manufacturing AMD chips for Sony's PlayStation 5 (PS5) games console are highly questionable, according to sources from Taiwan's semiconductor supply chain.Backend houses register normal progress in processing PS5 SoCs: Backend houses have seen smooth progress in packaging customized SoCs for Sony's PS5 and yield rates at the foundry partner are also steady, with shipment goal set by the vendor for the next-genration games console likely remaining unchanged, according to Taiwan's backend supply chain sources.

Huawei's woes seem to have been compounded by Chinese chipmakers who, wary of breaching the US trade sanctions that took effect on September 15, have reportedly suspended shipments to the tech giant. Huawei had been aggressively building up its chip inventory ahead of the trade ban, injecting some momentum into the memory market. But inventory correction faces memory vendors in the fourth quarter, as demand from the handset segment remains weak. The US-China trade war is promising to split the global supply chain into two camps, but Japan-based Sharp will not take sides, accoriding to its chairman.China chipmakers suspend shipments to Huawei: China-based chipmakers have quietly suspended their shipments to Huawei, as well as the joint development projects they had been working with the Chinese vendor, amid concerns about being targeted for breaching US trade restrictions, according to industry sources.Memory chipmakers to deal with inventory correction in 4Q20: DRAM and NAND flash chipmakers will be engaged in inventory adjustments during the fourth quarter of 2020, according to sources at Taiwan-based IC distributors.Sharp to not take sides in G2 supply chains, says chairman: The global tech sectors are heading towards a split into two ecosystems serving China and the US separately, but there will be no need for Sharp, now under the Foxconn Technology Group, to take sides, according to the Japan-based firm's chairman and CEO Cheng-Wu Dai.

Hoist and crane makes Cheng Day Machinery Works has since 2018 embraced smart manufacturing, which it says has transformed its management and solved other problems, such as labor shortages.The Taiwan-based company has now switched to "horizontal collaboration" that enables communication and coordination among the management, sales, marketing, R&D and production teams, said company founder Pan I-ted. Executives are able to cope with shipment problems via big data analysis and the sales team can know real-time conditions using mobile devices to quickly respond to clients' needs, Pan noted.Cheng Day used to rely on manual recording and personal inquiries in many operational processes, which prevented the business team from knowing inventory conditions and production progress for certain orders and from quickly responding to clients' needs.In adopting smart manufacturing, barcodes have been used in production traceability from material/component preparation and feeding, manufacturing process to quality inspection, inventory and shipment, allowing a vision information system to let staff members and executives understand real-time conditions of production.With every material/component item matched with a barcode, Cheng Day has established standardized control of materials/components and connected it with a production management system to reveal details of production.With consulting services provided by i-Torch Technology, Cheng Day is setting up a smart factory which will be completed by the end of 2020, and expects complete smart manufacturing to kick off by year-end 2021. Cheng Day also plans to use AI to predict timing for maintaining equipment and improve product quality.Cheng Day Machinery Works's management teamPhoto: Michael Lee, Digitimes, September 2020

Nvidia's deal to acquire Arm comes with potential risks. But turning Arm into a "US" company could turn away Chinese clients who are embracing China's de-Americanization campaign. ABF susbtrate suppliers ae set to stop shipments to Huawei in compliance withe US sanctions, but they will still see tight capacity, thanks to significant orders for processing GPUs and CPUs to be releasded by US vendors. Notebook shipments remained strong in August, with the top-5 vendors' shipments hitting a new high.Arm may lose China market after Nvidia takeover: Arm stands to lose its Chinese clients by becoming a part of the US-based Nvidia amid China's campaign to shed its reliance on American IC suppliers.ABF substrate supply to stay tight despite no shipments for Huawei: Taiwan-based IC substrate makers including Unimicon Technology, Nan Ya PCB and Kinsus Interconnect Technology continue to see their available production capacities for ABF substrates fall short of demand after stopping shipments to Huawei starting mid-September, according to industry sources.Top-5 notebook brands see shipments peak in August, says Digitimes Research: Global top-5 notebook brands' combined shipments in August 2020 - not including detachable models - hit a new high for 2020 as shipments to the consumer segment gew on year, and education procurement orders from Japan's GIGA School project gradually approached the peak of the year.