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.

Many tech firms in Taiwan have shown growing interests in working with and investing in startups. But for startups to survive the competition, according to Morgan Lai, a parnter of Silicon Valley-based Foundation Capital, they need strong marketing capability.Lai, who is setting up Formulate Ventures under Foundation Capital, recently talked to Digitimes about why many venture capital funds are shifting their investment strategies, and what it takes for startups to succeed. She also pointed out business opportunities from some latest tech trends.Q: You have been managing enterprise B2B for two years. How do you identify targets for venture capital investment?A: Foundation Capital focuses on various industries with developmental potential. For example, it has invested in Netflix and startup companies engaged in satellite technology. Enteperprise B2B targets companies rather than individuals. We select investment targets by looking at whether they can generate revenues and can grow fast. A criteria for measuring the success of an investment is whether the company can make it to IPO or be acquired at prices several times the initial value. Enterprise B2B mainly focuses on software and finance sectors.You need to have a firm grasp of the macroeconomic trends, then identify the sub-trends through research and analysis, and then list startup firms under each sub-trend from which you can pick your investment targets.A startup for seed-round financing would be valued at US$3-4 million 10 years ago but now the best target is possibly valued at US$25-30 million, nearly 10 times as much. This doesn't necessarily mean present targets are better than those 10 years ago, but because there is too much capital hunting for limited numbers of good investment targets after 10 bullish years in stock markets.The higher valuation means that available funds can invest in fewer startup companies. A 3-year fund used to be able to invest in about 30 startups each year in search of a potential unicorns, but as startups in series A round are now too expensive, there has been a strategic shift to those in earlier stages.Therefore, almost all Silicon Valley-based large venture capital funds, such as Foundation Capital, now focus on startups in the seed round or an earlier stage. I am setting up Formulate Ventures, a fund particularly for venture capital investment in startups in pre-seed or seed stage with Foundation Capital being a shareholder.Successful investment in startups in an early stage hinges on choosing right targets. Five startup companies established by my friends at MIT have seen their corporate valuation expand to the unicorn level of US$1 billion in six years, and this motivated me to set up Formulate Ventures.It is usually difficult to decide on investments in early-stage startups due to relatively limited company information. There are more and more venture capital funds and managers, and the key to staying competitive is to keep doing in-depth market studies in emerging fields and formulate one's own investment strategies.Q: What is your insight into the startup ecosystem in Taiwan? What are your recommendations for Taiwan-based startups planning to tap overseas markets?A: There are three industry sector with large development potential in Taiwan: Semiconductor materials, biomedicine and software infrastructure/cybersecurity.While there were possibly fewer than 10 AI inference IC design houses 10 years ago, there are more than 100 now. Foundation Capital has invested in two of them, Graphcore and Cerebras, with both having R&D collaboration with TSMC.Computing capability of AI inference ICs has been pushed up fast, but there are limitations to computing speed and memory capacity because of the materials used. IC design houses in this area must have innovative solutions in order to survive the competition. We've seen a design house replace crystalline silicon with other materials.For biomedicine, Taiwan has two advantages: its sufficient talent and its abundant centralized data available for use in biomedical AI, plus a well-developed biomedical research ecosystem.Software infrastructure/cybersecurity, unlike software application, does not need to be modified to cater to local markets. Nor does it require intensive capital input. Its therefore suitable for young entrepreneurs.For Taiwan-based startups planning to tap overseas markets and seek venture capital investment abroad, they have to prove that their products or services are marketable in their target markets, and ready strong marketing plans. The founder of the startup must know how to sell the products and services and build a strong marketing team. In the US, it is very important that you can communicate with and convince your clients in the B2B sector. You can't expect your app to sell by just making it available online.Q: COVID-19 has changed what was taken for granted in the past. What is your view of trends in the future?A: There are three interesting trends. The first is remote working. Because of the pandemic, many enterprises need to use cloud computing to allow employees to work at home or remote locations, collaborate or receive training online.The second trend is automation. There have been many B2B automation software products, mostly customized solutions to meet large enterprises' needs, in the US, such as those developed by UiPath and Automation Anywhere. However, small- to medium-size enterprises' demand for automation will emerge. Unlike big companies that need customized automation solutions that have to supported by in-house IT resources for operation and maintenance, SMBs will need new-generation automation software that is not customized and can be operated using notebooks without in-house IT staff.The third trend is B2B automation software for financial teams, such as AI-based automatic cost estimation and forecasting models.(Note: This is part of Women in Venture series, a collaboration with Digitimes strategic partner Anchor Taiwan, a platform to connect the world with Taiwan focusing on corporate innovation and cross-border expansion. The Women in Venture Roundtable is a network of 80+ female investors and bi-monthly sessions featuring world-class guest speakers. More info: Anchor Taiwan.)Foundation Capital partner Morgan LaiPhoto: Michael Lee, Digitimes, July 2020

A tri-party group consisting of Chunghwa Telecom (CHT), Kingwaytek Technology and Tamsui Bus has begun autonomous passenger transport services on a dedicated section along a light rail line in New Taipei, according to sources at CHT.The services leverage an autonomous driving platform that integrates C-V2X (cellular vehicle-to-everything) wireless communication system, self-driving buses, roadside sensors and a cloud monitoring system, said the sources.As related IoV services are emerging as one of the most important 5G applications, CHT is striving to integrate related technologies, including AiOV, C-V2X, LiDAR and 5G to develop technologies and solutions enabling smart transportation, the sources added.To support self-driving platform, CHT has established a monitoring center in an area adjacent to the light rail line to handle real-time location information about the self-driving buses and images of surrounding environments, traffic signals, traffic flows and weather conditions through C-V2X applications, noted the sources.The self-driving buses are developed and built by Kingwaytek, a provider of digital maps for car navigation and other autonomous solutions, said the sources.A self-driving bus developed by KingwaytekPhoto: Yihan Li, Digitimes, August 2020

Apple seems to be looking to build a supply chain consisting of China-based makers for iPhones specifically for the Chinese market. Chinese maker Luxshare has already taken manufacturing plants in China from Taiwan's Wistron. Luxshare and another Chinese company, Lens Technology, are reportedly also looking to buy metal chassis plants from Taiwanese firms, as they seek to expand their presence in the iPhone ecosystem with approval from Apple. The US vendor has already disclosed that its 5G iPhone will come later than usual, and Digitimes Research estimate that global 5G smartphone shipments will reach more than 250 million units in 2020. Digitimes Research also expects global server shipments to shrink 5.6% sequentially in third-quarter 2020 as demand decelerates.Apple keen to recruit more Chinese suppliers for iPhone: Apple is seemingly continuing to recruit more Chinese suppliers for iPhones, judging from Chinese EMS provider Luxshare Precision Industry and handset cover glass maker Lens Technology's aggressive moves seeking to acquire metal chassis plants operated in China by Taiwan-based makers, reportedly under the nod from the US vendor, according to industry sources.Global 5G smartphone shipments to top 250 million units in 2020, estimates Digitimes Research: Global shipments of 5G-enabled smartphones are expected to reach over 250 million units in 2020, accounting for over 20% of global smartphone shipments for the year, according to Digitimes Research's latest estimation.Global server shipments to contract 5.6% sequentially in 3Q20, says Digitimes Research: Global shipments of servers are estimated to contract 5.6% sequentially in the third quarter of 2020 due to a deceleration in demand for cloud servers from datacenter operators and for enterprise servers, according to Digitimes Research.