Open RAN (Open Radio Access Network) is one of the options for telecom operators' deployments in the 5G era. As Open RAN can adopt COTS (commercial off the shelf) or GPP (general purposed processor) hardware, such as x86 servers, Taiwan's makers may be able to seize the chance and carve out a piece in a telecom equipment market that has been dominated by Ericsson, Nokia and Huawei.Taiwanese maker are particularly eyeing private networks for enterprises. As hardware-software integration plays a crucial role in Open RAN, Taiwanese makers are not only developing hardware but also honing their system integration capability.Eyeing such business opportunities from private networks include Alpha Networks, which set up a subsidiary Transnet in First-quarter 2019. Its goal is to integrate Qisda's products with its own, first targeting smart manufacturing. It is current testing smart manufacturing lines at its own plants.Compal Electronics has set up a 5G lab or its partners to test its products, such as Lions Taiwan Technology. Askey has set up a smart city department to provide integrated services. It is currently testing its smart manufacturing solutions at a plant in Taoyuan, northern Taiwan.Taiwan makers' deployments for private networksCompanyDeploymentsAlpha NetworksSet up TransnetSeeking to integrate Qisda productsAlpha Networks plant as test siteAskeySet up smart city department to provide integrated servicesCompal5G lab for partners to test productsQuantaSet up Quanta Cloud TechnologySoftware R&DCU/DU/RU end-to-end solutionsSource: Digitimes Research, August 2020

Work- and study-from-home needs in the wake of the pandemic have shored up demand for IT devices, benefitting makers along the supply chian, including Taiwanese panel suppliers who saw shipments for large-size LCD applications shoot up 35% sequentially in second-quarter 2020, according to Digitimes Research. In the LED sector, Epistar has seen utilization rates riswing, thanks partly to strong orders for backlighting applications from the TV segment. In the semiconductor sector, Sino-American Silicon Products (SAS) will take a 22.53% stake in Advanced Wireless Semiconductor (AWSC), looking to create synergy for the developing GaN components.Taiwan large-size panel shipments ride high in 3Q20, says Digitimes Research: Taiwan's shipments of large-size panels (excluding Sharp's) are expected to grow 6.7% sequentially in third-quarter 2020 after registering a robust growth in the previous quarter, according to Digitimes Research.Epistar sees capacity utilization rise to 70%: LED epitaxial wafer and chip maker Epistar has seen utilization of production capacity rise from 50-60% in the second quarter of 2020 to 70% currently due to increased demand for LED chips for backlighting, lighting and fine-pitch displays, according to the company.SAS, AWSC team up for GaN components: Sino-American Silicon Products (SAS) and Advanced Wireless Semiconductor (AWSC) have struck a strategic alliance under which the former will acquire a 22.53% stake in the latter through private placement. The equity investment will allow SAS to become the largest shareholder of AWSC, and the pair will be jointly developing gallium nitride (GaN) components.

Taiwan Mobile and Formosa Plastics Transport (FPT) have unveiled two autonomous vehicles for trial operation along a 3km road in a retiree commuinity.The vehicles will serve the Chang Gung Health and Culture Village developed by Chang Gung Memorial Hospital, an affiliate of FPT.The vehicles are developed by a consortium, with Taiwan Mobile providing a 5G dedicated network and cloud computing services, FPT providing vehicles and the field for trial operation, National Taiwan University developing an autonomous driving system, Ming Chi University of Technology integrating sub-systems, and iAuto Technology integrating vehicles' sensors, control and decision making.iAuto won a runner-up prize at 2019 Dubai World Challenge for Self-Driving Transport.The trial operation in the PoS (proof of service) stage will end in second-quarter 2021 and then PoB (proof of business) trial operation for various scenarios will follow.Formosa Plastics Transport chairman Chen Sheng-kuang (left) and Taiwan Mobile president Jamie Lin (right) Photo: Shihmin Fu, Digitimes, August 2020

Taiwan's shipments of large-size panels (excluding Sharp's) are expected to grow 6.7% sequentially in third-quarter 2020 after registering a robust growth in the previous quarter, according to Digitimes Research.The fourth quarter will see a sequential 4.6% drop in shipments, which nevertheless will represent an on-year rise of 10.8%. Taiwan's large-size panel (9-inch and above) shipments came to 64.38 million units in the second quarter of 2019, up 35% on quarter and 10.8% on year, bolstered by deferred shipments from the previous quarter and increased shipments for IT (notebook and monitor) and tablet applications supporting the emerging remote work and study trends amid the coronavirus pandemic.As a result, shipments of large-size panels for IT applications surged 43% sequentially in the second quarter, followed by those for other applications such as medical at 41.3%. Panels for tablet applications grew below the industry's average to settle at 32.6% as Taiwan's makers were not the primary suppliers for Apple's iPad devices in the quarter. Meanwhile, TV panel shipments were up 19.5%.Digitimes Research believes that the shipment momentum will continue through the third quarter due mainly to seasonal effects, with those IT applications riding high amid lingering pandemic impacts in the US, Europe and Japan.The closure of some of their LCD panel production lines by Korea's panel makers by the end of the fourth quarter will help Taiwanese peers maintain their shipment momentum in the quarter.

The coronavirus pandemic is decimating businesses in various sectors, but the outlook for semiconductor foundry houses remains robust, thanks to strong stay-at-home economy. Pureplay foundries, including TSMC, UMC and VIS, have raised 8-inch fab quotes to reflect tight capacity. The smartphone market may be weak currently, but IC designer Novatek is eyeing a new trend, developing AI accelerator solutions for handset applications. Taiwanese makers actually saw strong increases in handset panel shipments in second-quarter 2020 as a result of Chinese handset makers ramping up output after resuming production following pandemic-induced lockdowns, according to Digitimes Research.Eight-inch foundry quotes rise 10-20%: Pure-play foundries including TSMC, UMC and VIS have raised their 8-inch wafer fabrication quotes by 10-20% recently to reflect their tight capacities, according to industry sources.Novatek developing AI accelerator chips for handset applications: Niche IC specialist Novatek Microelectronics is reportedly engaged in the development of AI chips for accelerating edge computing at smartphones and other devices, according to industry sources.Taiwan small- to mid-size panel shipments pick up in 2Q20, says Digitimes Research: Taiwan's shipments of small- to medium-size LCD panels improved significantly in second-quarter 2020 thanks to rush orders from end-market device makers following a resumption of manufacturing activities, mainly in China, according to Digitimes Research.

Taiwan's shipments of small- to medium-size LCD panels improved significantly in second-quarter 2020 thanks to rush orders from end-market device makers following a resumption of manufacturing activities, mainly in China, according to Digitimes Research.Taiwan makers' second-quarter small- to medium-size panel shipments totaled 230 million units, up 37.5% sequentially and 28.9% on year, Digitimes Research data shows.Shipments of handset panels registered the highest 47.2% increase sequentially in the second quarter, and shipments of below 9-inch panels for tablet applications were up 36.8% thanks to orders supporting remote teaching.Looking into the third quarter, handset panel shipments are likely to sink 11.4% sequentially due to reduced orders from the feature phone sector, although orders from the smartphone sector will continue to edge up.Shipments of small- and medium-size panels for applications other than handsets will increase 4-8% in the third quarter on seasonal demand. But shipments for all major applications will fall in a range of 2-10% sequentially in the fourth quarter due to seasonality, Digitimes Research estimates.

Taiwan Comfort Champ Manufacturing will export a turnkey solution for producing medical masks, including materials, equipment and quality inspection technology, to Thailand, and is in talks about exporting it to Indonesia and the US, according to company chairman Andy Chen.Amid face mask shortages in many counties in the wake of the coronavirus pandemic, Chen said his company has teamed up with melt-blown non-woven fabric makers Trimeltech and Win-Win Nonwoven Innovation, and equipment maker NCM Nonwoven Converting Machinery to develop the turnkey solution featuring modular miniaturized production lines.The solution lowers the technological barrier for mask production and takes only seven months from equipment installation to start of $ production, Chen noted, adding the solution features adjustable production capacity, ranging from 200,000 to two million masks daily.Taiwan Comfort Champ-developed face mask production linePhoto: Company

Sony is expected to introduce its PS5 later this year, with Taiwanese backend service providers already starting delivering shipments for the new games consoles. Construction of 5G infrastructure may still be going on in China, but PCB shipments to the Chinese telecom sector for 5G base stations are slowing down, thanks partly to high inventory levels at clients. DRAM spot and contract prices have started trending downward since July as inventory levels at end-market device vendors are swelling. DRAM maker Nanya Technology saw its July revenues come to a five-month low.Backend houses kicking off shipments for PS5: Backend houses including ASE Technology and Greatek Electronics have kicked off shipments for Sony's new-generation PS5 game console series slated for launch later this year, according to industry sources.PCB shipments slowing down for China 5G base stations: PCB shipments for 5G base station applications in China have slowed down after peaking in the second quarter, and the supply chain is concerned about when shipment momentum could be revived, according to industry sources.Nanya revenue falls to 5-month low: DRAM maker Nanya Technology has reported revenue declined 7.8% sequentially to a five-month low of NT$4.91 billion (US$166.8 million) in July 2020.

Taiwan's panel makers including AU Optronics (AUO), Innolux and HannStar Display are adjusting their manufacturing strategies to cope with mounting competition resulting from the build-ups of AMOLED panel capacities by rivals in Korea and China.Stepping up their efforts to develop micro and mini LED panels to enhance their competitiveness, AUO and Innolux have also fine-tuned their production of LTPS panels.AUO has shifted the production of its 6G LTPS fab in Kunshan, China to focus on rolling out panels for high-end notebooks supporting gaming and creative art applications, while reducing those for smartphone applications.Innolux and its affiliated panel companies Sharp and Century Technology (Shenzhen) are making finer division of work between them to better meet market trends.With respect to handset panels, the three panel makers under the Foxconn Group are focusing on LTPS models, and they have landed more windfall panel orders for mid-range and high-end smartphones from Huawei recently as the Chinese vendor seeks to enhance its presence in the domestic market amid fresh US trade bans.Innolux is also benefitting most from an Amazon policy that stresses on introducing mainly 8-inch tablets, boosting shipments of small- to medium-size panels from the Taiwanese panel maker.HannStar Display, which operates a single 5.3G line, is revving up production of medium-size panels for industrial control and automotive applications, particularly for automotive after-market in China.

Following years of transformation efforts, Via Technologies is now dedicated to AI solutions with core technologies covering computer vision, deep learning and machine learning, and among its latest developments is Pixetto vision sensor for educational applications.The company has newly joined a New Taipei City education program, providing junior high schools in rural areas with Pixetto vision sensors to help students develop AI application capability.With a host of built-in vision sensor features, support for visual block programming, and an easy-to-use machine learning accelerator, Via Pixetto makes learning AI easy and fun, the company said.One key element of the Pixetto platform is the addition of pre-built vision AI models for recognizing objects, shapes, colors, faces and symbols such as letters and numbers, and students can use Pixetto software to quickly get these models up and running, and can begin creating their own unique projects with some creativity and basic coding using visual blocks, the company continued.The company is also stepping up its deployments in smart manufacturing, smart transportation and smart medical applications. Its latest AI in-vehicle safety solutions, including Mobile 360 M 810 edge AI and computer vision system, speed sensor, and driver surveillance lens have already been applied to public buses and industrial forklifts in Taiwan and China.