The iPhone 12series are expected to see significant sales, with Apple likely to increase orders for its ecosystem partners. Apple will reportedly increase SLP orders with its PCB suppliers for the iPhone 12 mini, as the smaller-size model has good sales prospects in Asia. In the semiconductor backend service sector, strong demand for wire bonding capacity is likely to last beyond first-quarter 2020. And Foxconn is gearing up efforts for the electric vehicle market. The EMS giant has unveiled its MIH software/hardware open platform for EV development.iPhone 12 mini mainboard suppliers may land extra orders: Taiwan's PCB makers Compeq Manufacturing and Unimicron, both now supplying SLP mainboards for iPhone 12 mini and iPhone 12 Pro Max, are likely to land additional orders from Apple as the former model stands a good chance of seeing better-than-expected sales, according to industry sources.Taiwan IC backend service firms ramping wire bonding capacity: The current tight wire bonding (WB) packaging capacity at Taiwan's IC backend service firms is likely to last beyond the first quarter of 2020 thanks to strong demand from analog and logic IC vendors, according to industry sources.Foxconn unveils software/hardware open EV development platform: A joint venture newly established by Foxconn Electronics and Yulon Motor has unveiled MIH, a software/hardware open platform for developing electric vehicles (EVs), according to Foxconn.

NADI System, Memorence AI and Verdigris Technologies have developed AI-based solutions for manufacturing.NADI has developed a 3D visualization management platform based on PSIM (physical security information management) architecture. The platform integrates data collected from manufacturing systems and IoT devices as 3D visualized displays for users to undertake analysis and prediction, according to company general manager Steven Chang.The 3D displays use in-house-developed algorithms and locational parameters for each production line, Chang said, adding that the platform is intended to help manufacturers attain real-time, accurate and remote management.Memorence has developed Memorence Suite, a GUI (graphical user interface)-based visual deep learning system capable of data management, AI model learning and inference, and results analyses, company founder and CEO Hsiao Pai-heng noted.To adopt AI-based solutions to upgrade production, the first step is to define the problems to be solved and choose appropriate image-capturing devices, and then keep collecting images and data and establish corresponding databases. The final step is to build AI models and let the models keep learning for optimization, Hsiao indicated. Memorence has helped clients hike defect detection accuracy to over 99.9%, Hsiao said.Verdigris, a company established in Silicon Valley by Taiwanese entrepreneurs, has developed AI-based sensors and algorithms to help factories diagnose power use for equipment and manage details of power consumption to maximize efficiency in power use, said company senior sales manager Jacky Wu.Verdigris has helped US-based Katerra install six smart monitoring systems consisting of 216 smart power meters at six switchboards at its factory to monitor 72 different electrical circuits, Wu noted. Verdigris also provides smart early warning and power use prediction during hours of peak power demand.Memorence founder Hsiao Pai-heng (left to right), NADI general manager Steven Chang, and Verdigris senior sales manager Jacky WuPhoto: Digitimes, October 2020

TSMC expects revenues from its 5nm manufacturing process to pick up in 2021 with the share to rise from only 8% in 2020 to more than 20%. Meanwhile, as the IT industry continues witnessing insufficient wafer foundry support, backend houses have also extend their delivery lead times to reflect their tight capacities. Demand from China will strongly influence iPhone 12's sales performance in 2020.TSMC expects 5nm chip sales to boost in 2021: TSMC CEO CC Wei has reiterated his previous remark that the foundry expects to see 5nm process technology to account for 8% of its total wafer revenues this year. The proportion will climb further to nearly 20% or above the level, said Wei at an earnings conference call on October 15.Taiwan backend houses extend delivery lead times: Delivery lead times at Taiwan-based packaging and testing houses have been extended, as fabless chipmakers are striving for capacity support, according to industry sources.China sales crucial for iPhone 12 performance: Sales of the just-released iPhone 12 lineup in China would be a linchpin for Apple to see whether its iconic product line could sustain growth in 2020 and beyond, according to industry observers.

The 5G subscriber market has continued growing steadily in China, with its 5G connected devices in use on track to grow to 185 million units by year-end 2020, having reached 66 million units in the first half, Digitimes Research estimates.After building over 400,000 5G base stations in first half-2020, Chinese telecom operators as a whole will install another 250,000-300,000 such base stations in the second half of the year, Digitimes Research indicates.To mitigate the financial pressure for 5G infrastructure buildups, China Mobile has reached a deal to share its 5G networks with China Broadcasting Network (CBN), while China Telecom has also teamed up with China Unicom for network sharing.Combined capital expenditure of China's top-3 telecom operators – China Mobile, China Telecom and China Unicom – totaled CNY88 billion (US$13.094 billion) in first-half 2020 and is to expand to CNY180 billion by year-end, representing an increase of 338% from a year earlier.Despite heavy investments for 5G network construction, the three telecom operators have yet to see meaningful improvements of their financial results in terms of ARPU (average revenue per user), EBITDA and EBITDA margin for migrating into 5G from 4G.

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.