When Chinese president Xi Jinping declared war on COVID-19, I knew the outbreak in China must have been very grave. At the time, many Taiwanese CEOs and managers had returned home from China for the Lunar New Year break. They couuld not go back to work in China after the holiday, and yet these "stranded" CEOs provided us with very good sources of first-hand information about what was actually happening to the supply chains in China during the outbreak. As an analyst with 35 years of experience under my belt, and with strong ties with many industry leaders in Taiwan, I felt a strong commitment to recording what I was witnessing at this turning point.That was how Disconnected ICT Supply Chains: New Power Plays Unfolding came into being. This new book of mine analyzes the ICT supply chains in the wake of the coronavirus pandemic from a Taiwan-originated Asian perspective that could fill the gaps of understanding from a US-European standpoint. I have done many research projects commissioned by major ICT firms, such as Microsoft, Applied Materials, TSMC, Foxconn and AUO, and I'm well aware of their blind spots.Taiwan's ICT industries are standing at the crossroads, and they must have their own value propositions in order to survive. The pandemic is a global disaster, and yet it provides Taiwan with an opportunity to show the world its worth.

PC demand in the first half of 2020 has been strong, thanks to stay-at-home needs, but PC vendors and their ecosystem partners are wary of weakening momentum in the second half of the year, with some brand clients reportedly starting to cut orders. The handset market is set to end 2020 with disappointment, but component suppliers expect demand to pick up in 2021. LED firms Epistar and Lextar have just announced a merger deal. Digitimes earlier talked to Epistar's president in an exclusive interview to learn about the company's mini LED development.PC suppliers cautious about demand in 2H20: PC product suppliers are having mixed views for their shipment prospects for the second half of 2020, after experiencing higher than expected growth in the first half propelled by the rise of the pandemic-induced stay-at-home activities.Cooling module makers expect vapor chamber demand from 5G phones to emerge in 2021: Taiwan-based cooling module providers remain optimistic about sales prospects of vapor chamber (VC) products for applications in 5G phones in 2021 although their expectations for ramping up related shipments to the 5G sector in 2020 have been dampened by the coronavirus pandemic, according to industry sources.Mini LED opportunities: Q&A with Epistar president Fan Chin-yung: LED epitaxial wafer and chip maker Epistar sets high hopes on mini LED applications. It has been keen to improve every step of the manufacturing process for mini LED chips, and aims to lower the defect rate to below 1ppm.

The coronavirus pandemic is disrupting 5G deployments at chipmakers, telecom carriers and end markets. Qualcomm previously was keen on gaining an upper hand in the 5G market, but has now found it necessary to devote more efforts to defend its share in the 4G segment. Meanwhile, 5G smartphone chip prices are expected to continue falling, but at a slower rate, in the second half of 2020, as competition in the segment becomes less intense with Huawei likely banished from the game. In 2020, global ODM smartphone shipments are expected to drop 13.5%, according to Digitimes Research.Qualcomm ramps up 7nm wafer production at TSMC, sources say: Qualcomm has increased its 7nm chip orders placed with TSMC looking to regain its 4G SoC market share, according to industry sources.5G smartphone chip prices likely to fall more slowly in 2H20: Unit prices for 5G smartphone chips, which have been pushed down to between US$70 and US$80 from over US$100 previously, will continue dropping but likely at a slow rate in the second half of 2020, according to industry sources.Global ODM smartphone shipments to fall 13.5% in 2020: Glogal ODM smartphone shipments are expected to reach 260 million units in 2020, down 41.6 million units or 13.5% from a year earlier, according to Digitimes Research.

Global shipping lines have been plagued by substantial empty container repositioning costs, but now such costs can be drastically reduced through a container sharing platform set up by Taiwan-based startup Neptune Container Swap (NCS), according to company executives.NCS chief technology officer John Chin said the company offers a container sharing platform dedicated to swaps of leased standard containers among shipping lines, which can not only help marine carriers eliminate unnecessary empty container journeys and costs, but also boost container turnover rates.Chin continued that different shipping lines usually see empty containers stay idle or in short supply at different harbors, and NCS can serve as a neutral third-party matchmaking platform to instantly maximize swaps of empty containers through its cloud computing and algorithms.Company CEO Spencer Feng also noted that NCS helps shipping firms exchange usage rights for empty containers on a one-for-one swap basis directly at ports, allowing them to enjoy the benefits of container sharing without negative impacts on their operations as their total fleet sizes and lease terms remain unchanged and confidential and no follow-up work is needed.Feng said that there are over 300 harbors around the world, and many of them are short of direct bilateral shipping lanes, providing great growth potential for swaps of empty containers directly at ports.Feng disclosed that since its inception in 2016, NCS has built partnerships with many Asian shipping firms including Taiwan's YangMing Marine Transport, Wan Hai Lines, Interasia Lines, and TS Lines, Singapore's Pacific International Lines and South Korea's Hyundai Merchant Marine.He stressed that his company will move to attract leading European shipping lines to join the NCS platform, such as Denmark-based APM-Maersk and Switzerland's Mediterranean Shipping Company. Both firms are now the world's top-2 shipping lines with a combined share of over 30% of global container shipping business.Neptune Container Swap CTO John Chin (left) and CEO Spencer FengPhoto: Shihmin Fu, Digitimes, June 2020

IoV (Internet of vehicle) data collected from ADAS (advanced driver assistance system), OBUs (on-board units) and RSUs (roadside units) have to be screened to extract information to serve different purposes, according to Roger Cheng, president for intelligent transportation solution provider Maxwin Technology.For car fleet management, IoV data is mainly for keeping vehicles running safely, hiking operational efficiency and reducing energy consumption, Cheng said.As demand from car fleet operators becomes more complicated, Maxwin hopes to play the role of system integration between such operators and IoV hardware/software providers, Cheng said, adding that Taiwan's ICT industries are able to produce diverse IoV devices and software companies have developed IoV software with open operating systems.Maxwin is in talks with operators of car fleets transporting construction materials, Cheng noted. Maxwin hopes to cooperate with car fleet operators with various transportation purposes to build models of different types of demand, and develop predictive and early-warning solutions, he added.Maxwin president Roger ChengPhoto: Yihan Li, Digitimes, June 2020

Deep01, a developer of artificial intelligence (AI) software designed to help physicians interpret computerized tomography (CT) images of the brain, has raised US$2.7 million in financing, with Asustek Computer leading the round of fundraising."Deep01 is a leading startup in Asia focused on AI medical solutions, and we look forward to harnessing the strength of this collaboration to further develop applications in the field of smart medical technology," said Albert Chang, Asustek corporate VP and co-head of the AIoT Business Group.The round also saw investment from Digital Economy Fund co-funded by ITRI (Industrial Technology Research Institute) and III (Institute for Information Industry), and BE Capital.Jim Li, managing partner of Digital Economy Fund, noted that Deep01 has obtained FDA clearances from both the US and Taiwan.Arthur Chen, managing director of BE Capital said, "Deep01 is a member of the BE supporting program. The system is in the Show Chwan hospital, and profitable results are already present. The AI emergency network has potential in the overseas markets. We introduced the company to the authorities in Japan, and the integration will proceed in the second half of this year."The ICT and healthcare industries in Taiwan are competitive on the international stage, and successful cases of commercialization will make our product more feasible in the global market, said David Chou, founder and CEO of Deep01.Deep01 said its AI product can detect acute intracerebral hemorrhage (ICH) in the A&E department. With an accuracy of 93-95% and 30 seconds per case, the performance exceeds the other competitors in the market, it calimed, adding that Deep01 is the first AI company in APAC to obtain US-FDA clearances in July 2019.Deep01 said it also won Taiwan's FDA clearance for its AI product of ICH in February 2020 and received its first purchase order of US$0.7 million. The AI-based service has launched in two medical centers and four local hospitals in Taiwan.Deep01 said its next step is to expand into global markets and to offer more AI-based services to the department of A&E, radiology, and neurosurgery.Asustek corporate VP Albert Chang (left) and Deep01 CEO David ChouPhoto: Company

Electric scooter sharing service operator WeMo Scooter has completed series A fund raising, obtaining investment of over NT$100 million (US$3.36 million), according to the Taiwan-based company.AppWorks Ventures was the leader for the investment, WeMo said.The funds will be used to set up an IoV R&D center and train about 100 IoV hardware/software experts in Taiwan and abroad in three years, WeMo noted.WeMo has deployed more than 6,000 rental electric scooters in Taiwan, with nearly one million trips in total a month.A WeMo rental electric scooterPhoto: Company

TSMC is expected to the start production of A14 processor on 5nm process later this month for Apple's upcoming iPhone, which sources say will adop Qualcomm's X60 modem, allowing the 5G iPhone to support both mmWave and sub-6GHz bands. While it remains to be seen how much momentum Apple can inject into the handset market later this year, notebook ODM Wistron is conservative about third-quarter 2020, and Wistron's chairman does not expect a V-shape recovery in the post-pandemic global economy. For China's major panel makers, BOE and CSOT, the pandemic is not deterring their ambition of replacing Korean competitors as leaders in the LCD market.TSMC to start chip production for next-gen iPhones: TSMC will enter production using 5nm process technology later in June for Apple's custom-designed A14 processor and Qualcomm's Snapdragon X60 modem, with both set to power the upcoming 5G iPhones to be launch later in 2020, according to industry sources.Wistron chairman turning cautious about market recovery: Wistron chairman Simon Lin has disclosed the company's operation in the second quarter has been better than expected, but the coronavirus pandemic, which he originally expected to be contained by the third quarter, is unlikely to ease anytime soon. He does not expect the post-pandemic global economy to see a V-shape of recovery, which will likely be more of a U-shape or L-shape one.CSOT, BOE moving to consolidate market positions: BOE Technology and China Star Optoelectronics Technology (CSOT) are moving to solidify their leading positions in China's flat panel industry where the landscape is undergoing a major change touched off by the capacity reductions at rival companies in Korea, according to industry sources.

Intel and TSMC are head to head in 3D packaging technology. While Intel has unveiled its Lakefield processors 3D-packaged with its Foveros technology, TSMC is looking to commercialize its SoIC technology for 3D heterogeneous integration next year. Meanwhile, Nan Ya PCB is looking to boost its profits by focusing more on high-value products, such as ABF and SiP substrates. And for driver IC designers, OLED DDI chips for smartphones promise to be a major driver of their next wave of growth.Intel, TSMC gearing up for heterogeneous 3D IC integration: Intel has launched its first heterogeneous chip architecture made using its Foveros 3D chip stacking technology, while TSMC is looking to commercialize its SoIC (system on integrated chips) technology for 3D heterogeneous integration in 2021.Nan Ya looks to ABF, SiP substrates for profit growth in 2020: Nan Ya PCB will be striving to boost its profits in 2020 by focusing more on shipments of high-value products such as ABF and SiP substrates, according to company chairman CC Wu.China, Taiwan IC designers keen on developing OLED DDI chips: Fabless chipmakers in Taiwan and China specializing in display driver ICs and fingerprint sensor chips are keenly developing OLED DDI chip solutions for smartphones seeking to build a preemptive presence in OLED screens that promise to become a mainstream in the hadnset market, according to industry sources.

The games console market is expected to see vendors launch new devices, intensifying competition against each other later this year. The keen competition means strong demand for NAND flash to support the consoles' large storage. Meanwhile, silicon wafer supplier GlobalWafers remain upbeat about the long-term demand for 12-inch wafers. GlobalWafers has just broken ground for construction of new manufacturing facilities in Taiwan. In the server sector, datacenters need more efficient heat dissipating solutions. Liquid cooling is the new favorite.NAND flash demand to pick up for game consoles in 3Q20: With Sony and Microsoft set to soon roll out their next-generation game consoles featuring high-speed and large-capacity SSDs, NAND flash demand for game console applications will be picking up starting the third quarter, according to industry sources.GlobalWafers to expand 12-inch silicon wafer capacity in Taiwan: GlobalWafers has held a groundbreaking ceremony for the expansion of subsidiary Taisil Electronic Materials, and will use offshore capital to fund the expansion, which is set to complete within two years, according to the Taiwan-based silicon wafer company.Cloud providers to increasingly adopt liquid cooling technology: With power consumption of servers rising due to increased CPU and GPU performances, traditional air cooling solutions are becoming less efficient in heat dissipation, prompting more cloud computing services providers to upgrade their machines to the latest liquid cooling solutions, according to sources from the server upstream supply chain.