Apple is expected to launch its 5G iPhone later this year, but its supply chain partners are now much less optimistic about shipments for the new devices that reportedly will support mmWave in 2020. Apple has been relying mostly on Taiwan-based manufacturers for assembling its devices, but Chinese makers are now gaining ground, as the US client looks to diversify its supply chain. ABF susbstrate suppliers stand to lose orders from Huawei because of US sanctions on the Chinese firm, but they will expect tight supply of their products because of demand from other clients.5G iPhone shipments may be much weaker than expected in 2020, say sources: Shipments of mmWave-enabled 5G iPhones slated for launch later this year are estimated to reach only 15-20 million units in 2020 compared to a previous supply chain estimate of 30-40 million units, intensifying competition among Apple's suppliers of FC-AiP substrates for the new phones, according to industry sources.Chinese firms gaining significant ground in Apple devices assembly chain: In order to cut costs, diversify production risks and better tap the Chinese market, Apple has allowed Chinese partners to play an increasingly important role in assembling diverse devices including iPads, Apple Watches and AirPods, posing growing threats to the vendor's existing Taiwan-based assemblers, according to industry sources.ABF substrate supply to stay tight despite Huawei woes: Taiwan-based IC substrate suppliers including Unimicron Technology and Nan Ya PCB are expected to continue experiencing tight supply of ABS substrates throughout 2020 despite losses of orders from Huawei, but their profitability may fall slightly, according to industry sources.

Nvidia is currently still ahead of competitors in the server GPU market and saw its revenues from the datacenter business reach US$2.98 billion in 2019, nearly three times those of AMD estimated at around US$1 billion.However, AMD, with support from TSMC's advanced manufacturing processes amid fast growth in the datacenter market, has been gaining market share in the server segment. As the only chip developer with an APU product line that integrates its in-house CPU with GPU, AMD is expected to be able to gradually build a server ecosystem of its own, Digitimes Research believes.The server business' contribution to Nvidia's revenues has continued rising with the proportion growing from 25% in the company's fiscal 2019 to 27.4% in fiscal 2020 ended January 26, 2020, and to 37% in fiscal first-quarter 2021 ended April 26, 2020.As applications for high performance computing (HPC) and AI are still in strong demand from the datacenter market, Nvidia and AMD are both optimistic about their sales in the calendar second quarter of 2020 despite the coronavirus pandemic.Nvidia reported revenues of US$1.14 billion for its datacenter business for its fiscal first-quarter 2021, while AMD's revenues in the first quarter of 2020 are expected to have stayed in high gear thanks to cloud computing service providers' keen deployments of servers during the pandemic.AMD is also expected to see strong order pull-ins from clients during the second quarter of 2020. AMD also set a goal of having more than 30% of its overall revenues coming from the datacenter business by 2023, showing its determination of making the datacenter business a key focus in the next few years.

China has a population of 1.4 billion in 2020. China's GDP would reach US$15.7 trillion according to CIA estimates. If China could maintain its target of a 6% growth, its GDP would be close to 80% of America's US$20 trillion. CIA even projected that China's GDP would climb to US$38.2 trillion by 2040, far surpassing America's US$28.8 trillion. China has become the world's factory and the world's biggest market.But what will become of China in the post-pandemic era? China's economic growth will no longer be able to rely on investments in infrastructure, which is already well-established in most parts of the country. And it remains uncertain whether China will have the financial means to support its semiconductor development and 5G deployments, judging from its worsening finances. How is Huawei going to survive under US sanctions? Is Samsung going to benefit from the Huawei woes? These are some of the questions I try to answer in my book, Disconnected ICT Supply Chains: New Power Plays Unfolding.Source: National Bureau of Statistics of China, Feb 2020

China-based manufacturer and component suppliers have crossed into the supply chain of Apple and are gaining increased orders from the vendor with China-based Luxshare already becoming a key assembler of the AirPods and having a chance to make the Apple Watch and iPhones in the near future. BOE has also been selected as an OLED panel supplier for iPhones, but will not supply the initial batch of Apple's 5G iPhone shipments. At the same time, Taiwan-based backend firms have increased their capacities in a bid to satisfy MediaTek's extra orders, while many foundries have witnessed a deceleration in orders for automotive-related chips.China-based Luxshare rising fast with potential threats to iPhone assemblers: China-based AirPods assembler Luxshare Precision Industry has seen increasing presence in the supply chain of Apple devices, and may have a chance of winning Apple Watch assembly orders and moving further to assemble iPhones eventually, according to industry sources.Initial 5G iPhone shipments reportedly not to feature BOE OLED panels: BOE Technology will not be in the supplier list for the first batch of panel shipments for Apple's 2020 iPhone lineup as the Chinese maker has failed to secure Apple's validation for its OLED screens, according to sources familiar with the matter.Backend firms raising capacity support for MediaTek: Taiwan's backend firms are moving to increase capex in the second half of 2020 to expand capacity to fulfill additional orders from MediaTek which is strengthening presence in 5G SoCs, Wi-Fi 6 chipsets and networking solutions, according to industry sources.Foundries see cutback in orders for auto chips: TSMC and other pure-play foundries have seen their mature process capacity utilization rates decline, due mainly to a substantial cutback in orders for automotive electronics applications, according to industry sources.

Taiwan-based blockchain startup OwlTing has developed OwlStay, a blockchain-based solution to provide integrated tourism services, according to company founder and CEO Darren Wang.OwlStay provides information on local history and culture particularly for in-depth tourism, Wang said.OwlTing launched OwlNest, a blockchain-based solution for hotel management, and OwlTing Experiences, a solution to provide detailed information for tourism planning, in 2017, and OwlJourney, a solution for booking hotel rooms, in 2019, Wang noted.By virtue of Ethereum databases, OwlNest excludes any possibility of tampering with room reservations to avoid over-booking.OwlTing has also launched OwlChain blockchain-based food traceability system.OwlTing founder and CEO Darren WangPhoto: Shihmin Fu, Digitimes, June 2020

MediaTek has booked more capacities at foundries and backend service providers for the second half of 2020. MediaTek is seeing robust demand not only for its smartphone chips, but also its other offerings. As far as chip supply is concerned, Apple is ditching Intel and equipping its next Macs with its own processors. Taiwan-based Unimicron is being identified as potentially a major supplier of ABF substrates for the Apple silicon. Meanwhile, Kioxia is expectd to complete its acquisition of Lite On Tech's SSD unit in July, after a few months' delay in the wake of the coronavirus outbreak.MediaTek books additional capacities for wafer foundry and backend services: MediaTek has increased its bookings for additional capacities at Taiwan's wafer foundry houses, mainly TSMC, and backend IC packaging and testing service firms for the second half of 2020 as the firm is ramping up chip shipments not only for 4G/5G smartphones but also for tablet, networking, TV, STB, IoT and server applications, according to industry sources.Unimicron may supply ABF substrates for new Macs with Apple silicon: Taiwan-based Unimicron Technology is being identified as the major ABF substrate supplier for Apple's new-generation Mac computers that will be powered by its in-house developed ARM-based processors, according to market sources.Kioxia to complete acquisition of Lite-On SSD biz in July: Kioxia (renamed from Toshiba Memory) is expected to complete its takeover of Lite-On Technology's SSD business in early July, according to industry sources.

CoolBitX, a Taiwan-based startup engaged in developing blockchain security solutions, has developed Sygna Bridge, an API that helps virtual asset service providers (VASPs) meet their respective countries' regulatory requirements as mandated by FATF (Financial Action Task Force) Recommendation 16 to prevent money laundering and terrorism funding, according to company founder and CEO Michael Ou.International money transfers among banks use SWIFT (Society for Worldwide Interbank Financial Telecommunication) codes for identification, and Sygna Bridge is intended as SWIFT for virtual currency exchanges, enabling VASPs to collect and exchange FATF Recommendation 16-compliant transaction information, Ou noted.CoolBitX in April 2020 presented to FATF officials findings in Sygna Bridge tests, which showed that in cross-country transactions of virtual currency among Japan-based SBI VC, South Korea-based Bitsonic and Taiwan-based BitoPro, Sygna Bridge was an efficient solution, Ou said, adding it passed examination by four large international accounting firms. Currently, 15 virtual currency exchanges in Taiwan, Japan, South Korea and Canada have joined Sygna Bridge.Among FATF Recommendations regarding prevention of money laundering and terrorism funding, Number 16 is the most difficult one for VASPs to comply with, Ou noted.In addition to Sygna Bridge, ColBitX has developed CoolWallet S, a credit card-sized Bluetooth hardware wallet that supports various tokens including Bitcoin, Ethereum, Litecoin, XRP and ERC20, Ou said. While many of competitive hardware wallet models have to be connected with notebooks, CoolWallet S is connected with smartphones via Bluetooth for transferring users' private keys, Ou noted.CoolBitX in February 2020 finished series B funding round raising US$16.75 million from Japan-based SBI Holdings and Monex, Taiwan's National Development Fund and Bitsonic. CoolBitX will use the funds to continue tapping the Asia market, aiming to increase the number of virtual currency exchanges joining Sygna Bridge to at least 30 in 2020.CoolBitX founder and CEO Michael OuPhoto: Shihmin Fu, Digitimes, June 2020

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.