It is uncertain how strong the stay-at-home demand for notebook devices will remain in the second half of 2020, but sources from the supply chain have claimed that Apple is set to increase its new MacBook Pro orders in late third-quarter 2020. Taiwanese PCB suppliers also expect strong shipments to the notebook and server sectors in the third quarter. Memory maker Nanya Technology also expects a ramp-up in revenues generated from the server sector.Apple to see over 20% on-quarter growth in 3Q20 notebook shipments: Apple is set to significantly increase its new MacBook Pro orders in late third-quarter 2020 and will see its overall MacBook shipments rise over 20% sequentially in the third quarter, according to sources from the upstream supply chain.Notebook, server PCB shipments to stay robust in 3Q20: Taiwan's rigid PCB makers Tripod Technology, HannStar Board and Gold Circuit Electronics (GEC), after registering significant revenue increases in the second quarter of 2020 on strong shipments for notebook and server applications, are optimistic that their shipments for the third quarter will remain strong with abundant orders in hand waiting to be fulfilled, according to industry sources.Nanya steps up process technology transition: Taiwan-based Nanya Technology is looking to move its in-house developed first-generation 10nm process technology to risk production later this year, and is engaged in the development of its second-generation 10nm process that may be ready for production slightly ahead of schedule, according to the DRAM chipmaker.

ODMs generally expect notebook shipments to drop sequentially in third-quarter 2020 after a wave of robust demand in the previous quarter in the wake of surging pandemic-triggered stay-at-home needs. But Quanta Computer will be an exception, as its notebook shipments will continue to rise, driven by strong orders for Chromebooks. Beneficiaries of the stay-at-home needs also include Asustek and Gigabyte, the former recording a 30% rise in second-quarter 2020 sales thanks to strong sales for PC-related products, and the latter hitting records sales for the period due to strong demand from the server sector. Display panel makers have also been receiving a boost from robust orders for IT applications.Quanta to see shipment growth in 3Q20 thanks to Chromebooks: Quanta Computer expects its notebook shipments to grow sequentially in the third quarter and may be the only ODM to see increases with Chromebooks being the key growth driver.Asustek 2Q20 revenues surge nearly 30%, Gigabyte hits record: Asustek Computer saw its revenues increase nearly 30% on year in the second quarter of 2020, while fellow motherboard and graphics card vendor Gigabyte Technology's revenues climbed to a quarterly high.LCD panel makers poised for strong sales in 3Q20: Having experienced sequential revenue growth in the second quarter of 2020, most Taiwan's flat panel makers are poised to enjoy further growth in the third quarter, buoyed by strong demand for IT panels as well as rising TV panel prices, according to industry sources.

VR device developer XRSpace and Taiwan External Trade Development Council (TAITRA) have jointly develop a virtual exhibition platform based on 5G and XR technologies in a bid to help vendors tap international markets.The platform includes 3D scenarios, exhibited objects, virtual exhibition staff members, meetings and tools for remote communications, said XRSpace founder Peter Chou, who was HTC's CEO.TAITRA chairman James Huang said his council will help Taiwan makers in digital transformation and aims to become a leader in digital international marketing.XRSpace uses XR, AI, cloud computing, computer vision and gaming technologies to create animations and VR social scenarios.XRSpace has recently introduced XRSpace Manova, a 5G-based mobile VR device equipped with Qualcomm Snapdragon 845. The device is driven by gestures without control devices.TAITRA chairman James Huang (left) and XRSpace founder Peter ChouPhoto: XRSpace5G XR virtual exhibition platformPhoto: XRSpace

Jorjin Technologies has unveiled J-Reality AR smat glasses featuring 5G connectivity to enable hands-free remote collaboration, according to company chairman Tom Liang.Based on a modular design, J-Reality comes in various models separately for smart manufacturing, medical care, exhibition and online gaming, and Jorjin has cooperated with corresponding partners, including Chunghwa Telecom, Yuan Rung Hospital, Information Technology Total Services, Far East Machinery and Fun2 Studio.J-Reality can enhance audio/video entertainment experience, letting users feel like seeing a 120-inch 3D screen four meters ahead, Liang said.Jorjin's June consolidated revenues reached NT$23.5 million (US$792,000), shrinking 2.92% sequentially and 30.62% on year. Consolidated sales of NT$81.6 million for second-quarter 2020 grew 43.01% sequentially but dropped 33.64% on year, and those of NT$138.6 million for January-June declined 48.15% annually.Jorjin's J-Reality AR smart glasses Photo: Vincent Mao, Digitimes, July 2020

The outlook for the handset market in second-half 2020 remains highly uncertain and messages coming from the supply chain have been rather mixed. Samsung's upstream partners have disclosed that Samsung is rather cautious about placing components orders for its soon-to-be released Galaxy Note 20 5G devices. Handset mainboard and CCL suppliers still expect seasonal demand to pick up, with good order visibility from Apple for 5G iPhones, though Chinese clients have yet to provide them with shipment estimates for the second half.Samsung cautious about placing component orders for Note 20 5G lineup: Samsung Electronics appears to have become cautious about placing component orders for its upcoming Galaxy Note 20 5G lineup, showing concerns about the prospects of the global smartphone market amid the coronavirus pandemic, according to sources from Taiwan's handset supply chain.Handset mainboard makers still expect seasonal demand to pick up in 2H20: Handset mainboard makers such as Compeq Manufacturing and CCL suppliers including Elite Material (EMC) still expect a pick up in seasonal demand in the second half of 2020 with better visibility for shipments to Apple, though Chinese vendors have yet to provide clear estimates for their demand, according to industry sources.FPCB makers building new capacity in 2H20 for 5G iPhones: Taiwan's flexible PCB makers Zhen Ding Technology and Flexium Interconnect, and flexible CCL supplier Taiflex Scientific are all gearing up to ready new capacity in the second half of 2020 to support shipments for new iPhones, according to industry sources.

The penetration of mmWave in the 5G market will be slower than expected. MediaTek reportedly has decided to push back its launch of mmWave 5G SoC lineup to 2021, with Chinese handset vendors now mainly focusing on sub-6GHz. It remains to be seen how strong the demand for 5G smartphones will be in second-half 2020, and memory chip prices may fall if smartphone sales disappoint. But the notebook market remains robust thanks to the stay-at-home economy. Notebook battery makers have clear order visibility for the third quarter.MediaTek to push back launch of mmWave 5G chips: MediaTek has decided to push back the launch of its mmWave 5G SoC lineup to 2021, with mass production unlikely to take place until the second half of next year, according to industry sources.Memory prices may fall if smartphone sales disappoint in 2H20: DRAM and NAND flash memory prices will turn weak and start falling over the next two to three quarters, if smartphone sales buck seasonal trends and disappoint in the second half of 2020, according to industry sources.Notebook battery demand remains robust: Taiwan-based notebook battery module makers Simplo Technology, Dynapack International Technology and Celxpert Energy continue to enjoy better-than-expected orders from their notebook clients, according to industry sources.

Though there is still uncertainty lying ahead because of the coronavirus pandemic, fabless IC designers are still anticipating a seasonal pick-up in demand from end market segments includign 5G phones. The IC designers are requesting more capacity support from their foundry service suppliers. And 5G infastructure construction in China is boosting shipments of optical components from Taiwanese makers. For passive components maker Yageo, sales in second-quarter 2020 rose thanks to improved utilization rates at its China plants.Major Taiwan fabless firms strive for more foundry support: Taiwan's first-tier IC design houses, such as MediaTek, have demanded more capacity support from their foundry partners recently, according to industry sources.Optical component makers see increased shipments for 5G: Taiwan-based optical component suppliers have seen shipments for 5G base station and other applications start gaining momentum thanks to an acceleration of 5G infrastructure construction in China, according to industry sources.Yageo posts over 30% revenue increase in 2Q20: Passive components maker Yageo saw its second-quarter revenues climb 34.4% sequentially to NT$13.47 billion (US$457.7 million), thanks mainly to improvement in factory utilization rates in China.

China accounts for a third of the global car market. And of the 2.2 million electric vehicles (EV) sold worldwide in 2019, 48.2% were sold in the China market. No wonder China carries so much importance in the car industry.Around 2000, car vendors from around the world flocked to China. There were so many foreign cars running in China that the country was described as a "colony" of foreign carmakers.But 20 years on, the car industry has seen drastic changes. European, US and Japanese car vendors may still be leaders in the market, but they rely heavily on production in China.And for EV production, six of the global top-6 EV battery makers are Chinese firms. The importance of batteries in EV production must not be underestimated: Batteries account for over 40% of the cost of an EV. And of course, the production of EV batteries involves the supply of rare earths, a sector which China dominates. What will the future be like for Western carmakers and Taiwanese suppliers when the age of EV arrives?Foreign carmakers flocked to China after it entered WTO. The world's top three automakers, General Motors (GM), Volkswagen and Honda, all have more than 30% of their vehicles manufactured in China. In particular, GM's factories in China account for 45% of its production, and VW's 38%. That is, the world's largest automaker VW produces slightly over 10 million vehicles a year and four million of those are made in China. GM makes three million cars in China.Foreign automakers rely heavily on China, which at the same time has developed a strong car industry of its own. But China is not eyeing the traditional fossil fuel cars or doing manufacturing for foreign car vendors. Rather it is keen on developing EVs, car components integrating software and hardware, and creating services.The future of car industryAt CES 2020, at least 30 vendors showcased their concept cars, including Mercedes and BMW. Mercedes' Vision AVTR, inspired by the movie Avatar, boasts use of clean energy and harmony between humans and nature. The fish scale-like exterior looks like breathable skin, which allows the vehicles to communicate easily with the outside world. Sony's Vision-S concept car, with 33 cameras replacing the rear-view mirrors, demonstrates the Japanese vendor's attempt to tap the car market by leveraging its strength in electronics.Traditional automakers may partner with leading electronics manufacturers, with an aim to replace global tier-1 automotive component suppliers including Japan-based Denso, Germany-based Bosch and Continental, and Canada-based Magna International. Bosch CEO Volkmar Denner does not expect an increase in global automotive production in the next five years. He also foresees that the current business model in the car industry will come to an end by 2030.Does the joint venture between Foxconn and Fiat Chrysler (FCA) mean that when EVs become more popular in the car market, the production process will be similar to that of electronics? Compal, Wistron, Inventec and Delta Electronics are all eyeing the car market in their "post-PC" deployments.Global automotive market, 2014-2019 (m units)Sources: Various car associations and OICA, compiled by Digitimes, July 2020

A smart manufacturing trial base in central Taiwan will extend from experimental production for components to technological verification of smart manufacturing solutions, according to Intelligent Machinery Technology Center (IMTC) under government-sponsored Industrial Technology Research Institute (ITRI).The base, set up by IMTC at Taichung Precision Machinery Innovation Technology Park, started operation in September 2018. The base, equipped with locally-developed machine tools, automation equipment and software, is intended to introduce concept of smart manufacturing to Taiwan-based small- to medium-size makers.As more and more makers hope to introduce smart manufacturing to hike production efficiency and competitiveness, the base has to play an additional role of verifying smart manufacturing solutions to be adopted, helping makers set up smart factories covering planning, equipment development and system integration, IMTC said. For example, a shoe maker planning to set up a factory in Vietnam can install trial production lines, and if proved to be feasible, they can be exported to the Vietnam factory on a turnkey basis.Verification for technological feasibility can help makers save R&D cost and time, IMTC said.The base has so far helped over 100 makers undertake experimental smart production of over 800 models of components used in automobiles, bicycles, machine tools, aerospace devices and various molds.ITRI's smart manufacturing trial base Photo: Shihmin Fu, Digitimes, July 2020

The high-speed transmission of 5G will allow games to be played like streaming media and players will no longer need to wait for the contents to be fully downloaded, according to Taiwan-based game developer Winking Entertainment chairman Johnny Jan.Jan noted that games' trials or demos play a key part in attracting players to purchase and if the services can happen instantaneously, it could keep the players enthusiastic and increase the chance for them to make purchase.Cloud computing is another area where 5G can benefit the gaming industry. With 5G, game processing can be fully handled at the cloud server side, which simply needs to transmit the game screen back to the players' handheld devices, Jan said in a speech he delivered at a recent forum on the gaming industry.With the services, the penetration rate of AAA games will rise significantly as all users can enjoy them without needing to spend a fortune to acquire a compatible high-end hardware, he said.In addition to Google, which has been keen on trying to penetrate into cloud computing gaming, telecom carriers, Sony and Nintendo will also begin releasing related services.VR gaming is also expected to benefit significantly from 5G as VR contents generated by the mainframe can be transmitted wirelessly and VR games can also shift from a player to environment (P2E) mode to a player to player (P2P) one.Gaming to be significantly changed by 5GPhoto: Digitimes file photo