With automakers having little time to undergo digital transformation jointly with their supply chain partners amid quick and revolutionary changes in the industry, Taiwan-based ICT makers stand a good chance of getting a bigger presence in the car supply chains thanks to their strong capability in electronics, according to Liv Huang, assistant vice president for Automotive Environment, Energy, Electronics and Engineering Division under government-sponsored Automotive Research & Testing Center (ARTC).But ICT makers must understand the significant differences between consumer and automotive electronics in terms of product life cycle and reliability, Huang said.Drastic temperature changes in various scenarios make it a challenge for electronic components suppliers whose products have to stably function under unstable power supply and large mechanical impacts, Huang noted.For product life cycle, carmakers may offer after-sale warranty for as long as 10 years, much longer than that for consumer electronics, and their partnering OEMs face long-term tests for maintaining high enough yield rates and steady production capacities, Huang indicated.Unlike consumer electronics which can be rebooted after functional failure, running cars stand no chance of being restarted, Huang said. Due to high standards for reliability, automakers spend much time and cost in examining OEM qualification and makers, and chosen OEMs will not easily be replaced, Huang noted.

The latest development of small- to medium-size panel technology is rapidly shifting toward AMOLED panels and related applications, including OLEDoS (OLEDon-silicon) panels for AR/VR applications, rollable AMOLED panels and in-display camera modules.An assortment of small- to medium-size panels highlighted at the recently concluded SID 2020 virtual event also showed that panel makers are more active in developing smaller applications such as those for HUD (head-up display) and AR/VR devices, as the growth of panels in the smartphone market has slowed down, and screen sizes for tablet and automotive applications have further enlarged, Digitimes Research has found.Some makers were placing camera modules under flexible AMOLED panels, indicating that the development of related in-display camera technology has become more mature.China-based BOE Technology and Tianma Microelectronics showcased reflective TFT LCD panels that target the e-book reader market, while Taiwan's E Ink Holdings (EIH) has already rolled out its next-generation colored e-paper solutions with faster response rates.It remains to be seen if efforts by BOE and Tianma could pose a challenge to EIH's colored e-paper solutions.

Taiwan Automation Intelligence and Robotics Association (TAIROA) has established a platform bringing together system integrators from different sectors in a bid to improve service quality and smart manufacturing.The Taiwan Automation Intelligence System Integration Alliance currently has 44 members mostly engaged in system integration, including Hiwin Technologies, Delta Electronics, Marketech International, Gallant Precision Machining and Qisda, said TAIROA, adding there are also research organizations such as government-sponsored Industrial Technology Research Institute (ITRI), Institute for Information Industry (III) and Precision Machinery Research & Development Center.Smart manufacturing needs cross-domain support, which a single system integration service provider is incapable of providing, said TAIROA, adding currently in Taiwan, most system integrators have insufficient talent and resource, and their operational scales are usually small.Core automation components and equipment, robots and system integration are key to smart manufacturing, TAIROA chairman Szu Kou-i said.A ceremony marking the founding of Taiwan Automation Intelligence System Integration AlliancePhoto: Chloe Liao, Digitimes, August 2020

TSMC is going to disclose more about the development of its sub-3nm manufacturing processes and SoIC at its upcoming technology forum on August 25. The foundry is building 3nm fabricaion lines at the Southern Taiwan Science Park, and it has acquired substantial amounts of facilities there, the latest being a plant from E-Ton Solar. Nan Ya PCB has delivered samples of SiP substates to clients for processing 5nm chips, and volume shipments may begin by the end of 2020.TSMC to talk about sub-3nm process, SoIC at upcoming tech forums: TSMC at its upcoming technology symposiums will disclose more details about the foundry's 3nm and 2nm process nodes, and advanced 3D heterogeneous integration technology, such as SoIC (system-on-integrated chips) packaging.TSMC acquires factory building in southern Taiwan: TSMC has announced the acquisition of a factory building and related facilities owned by E-Ton Solar Tech at the Southern Taiwan Science Park (STSP) for NT$860 million (US$29.2 million), according to a company filing with the Taiwan Stock Exchange (TWSE).Nan Ya delivers sample SiP substrates for 5nm chips: Nan Ya PCB has delivered samples of SiP substrates for processing 5nm chips for validations by clients and expects to kick off shipments of such substrates by the end of 2020 at the earliest, which will boost the revenue contribution from high-end applications.

Coretronic Intelligent Robotics has developed a navigation solution based on 3D LiDAR SLAM (simultaneous localization and mapping) technology for autonomous mobile robots, according to company president Andy Hsin.Without GPS signals for positioning, industrial carrying vehicles used to be equipped with magnetic stripes, reflectors or QR codes for accurate positioning, making it difficult to deploy them at factories, Hsin said.The 3D LiDAR SLAM-based navigation solution is capable of 360-degree scanning and matched with a sensing-fusion algorithm and sensing data collected from gyroscopes for positioning.The solution is equipped with 3D-depth cameras to real-time capture characteristics of pallets for comparison and thereby can recognize shapes of different pallets and spatial coordinates of pallets to automatically adjust depth of fork-picking and compute optimal routes for robots to fork-pick pallets.Coretronic Intelligent is developing AGVs (automated guided vehicles) in cooperation with material handling equipment maker Noveltek Industrial Manufacturing, which is providing vehicles and necessary parameters to be set for moving vehicles, Hsin noted. With tests recently completed, such AGVs will be put into use at one or two factories by the end of 2020, Hsin said.It has cooperated with military, police and fire agencies in Taiwan to boost use of drones for security patrols and with a company in Japan to use drones in logistics operation, Hsin said.It has signed a MoU for strategic cooperation in application of drones with Japan-based KDDI and South Korea-based LG U+, Hsin noted. For cooperation with KDDI in particular, plans of using drones to inspect electric towers and facilities along railway lines in Japan will be finished by the end of 2020, Hsin indicated.An AGV developed by Coretronic Intelligent RoboticsPhoto: Michael Lee, Digitimes, August 2020

Disconnected ICT Supply Chains: New Power Plays Unfolding written by Colley Hwang, founder & president, DIGITIMES, is among the very few books available at present that take an in-depth look into current global supply chain developments. It immediately grabbed industry attention after publication in late May 2020. A group of industry leaders gathered at a book reading event at the end of July to share their experiences in coping with COVID-19 impacts over the past six months and validate the visions given in the book.In his opening remarks, the event host, Winston Hsu, professor, Department of Computer Science and Information Engineering, National Taiwan University, noted the enormous impacts COVID-19 is exerting on industries worldwide. The US-China trade tension that started in 2018 also has far-reaching implications for global industries. The two factors have fundamentally changed the world economy and industry dynamics going forward. However, not all are suffering from the changes.The industry leaders taking part in the event agree with Hsu. They generally think it is imperative that corporations stay on top of current trend of events whether it's COVID-19 or US-China trade tension. The firms that are able to turn crisis into opportunity and benefit from the situation are those well prepared at the onset of the trade tension or the pandemic. When faced with the changes, they can immediately implement strategic moves that allow them to reduce dependency on suppliers and maintain normal business operation.From a macro perspective, few companies can take preemptive actions and make the right decision at the right time. Most business operators admit they were taken by surprise when first confronted with supply chain disruptions. However, as they worked hard to address all sorts of challenges over the past six months, most businesses have established contingency measures, the most common among which is the use of wide-ranging remote collaboration technologies to enable uninterrupted communication both inside and outside the company.The participants shared their practices and thinking with respect to teleconferencing and online tools at the book reading event. Businesses have grown accustomed to using remote collaboration platforms over the past few months. However, the challenge is not how to make use of such platforms internally to hold meetings but how to use them to generate sales leads. A corporate leader drew on his company's experience and emphasized the necessity to adopt new thinking and new practices. For example, his team set up a live webcast studio in the company and produces online content in a systematic approach, which presents product information to customers clearly and efficiently. More than that, it also provides a means for delivering customer care and maintaining customer stickiness, free of COVID-19 influences.Talking about COVID-19 impact on the industry as a whole, the participants uniformly pointed out that businesses scrambled to grab supplies from the market out of a strong sense of crisis in the first and second quarter. This even resulted in record-breaking revenue for some vendors in the first half of the year. Going forward into the second half of 2020, the outlook does not seem promising with COVID-19 still going strong. A participant raised a different point of view, saying that the pandemic will fall under control sooner or later, possibly by 2021 when vaccines become available. As consumers and businesses reduce spending in the wake of COVID-19, they keep a large sum of cash on hand. As such, after COVID-19 passes, the market will enjoy a strong rebound. Businesses need to start planning in the second half of 2020 if they want to capture opportunities coming up in 2021. For example, the participant's company plans to move from defense to offense starting in the third quarter while picking up the pace with its undertakings. In sum, COVID-19 will spur a market reshuffle and businesses that are hunkering down also need to closely watch market changes and act swiftly when opportunities arise.Industry changes occurring at present include not only those to internal corporate operations but also those in external industry environments. Following a disconnected supply chain, deglobalization is definitely coming. Corporations' global operations must take localization into consideration, leverage local workforces and adapt to local cultures and policies. For example, in China, the government will impose more rigorous standards toward IT equipment purchase in view of the US-China trade tension, making it difficult for firms with American affiliations to do business in China if they continue with their old sales approach. They will have a better chance if they transition from selling hardware systems to providing software services. Such a business model will work not only in China but also in the rest of the world.Aside from the pandemic, 5G and AI are also major trends dictating industry changes. According to Hsu, the industry has been treating the two technologies individually. A look into market dynamics over the recent two years indicates that 5G and AI developments will integrate. More than AI, 5G will be combined with a slew of other new technologies including big data analytics, cloud computing and block chain. 5G- and AI-enabled devices will become standard equipment to all sorts of industrial systems. Commenting on industrial applications, a participant noted smartization is well underway across different industries and called on vendors to keep a close watch on developments in various fields. Healthcare and manufacturing are the two focus areas at present. AI applications in healthcare may be catching more attention but there are high barriers across different medical specialties, which prevents the sharing of AI training models and thus slows down AI popularity. To address this, industrial alliances should be formed to share R&D results. Manufacturing, on the other hand, is among the very few areas where profit has been made with AI implementations. Nevertheless, vendors looking to expand into AI for manufacturing are advised to develop products with differentiating features so as to successfully tap smartization opportunities.Colley Hwang, president, DIGITIMES (left), and Winston Hsu, professor, Department of Computer Science and Information Engineering, National Taiwan University (right)Winston Hsu analyzing the influences of COVID-19 and US-China trade tension on Taiwan's industries

The US trade sanctions on Huawei are expected to hit consumer confidence further, sending memory chipmakers bracing for weak shipments in second-half 2020. Despite the US-China trade rows and the coronavirus pandemic, Taiwan's PCB production managed to record a 3.4% onyear growth in sales value in second-quarter 2020, thanks to makers' shipments for high-end applications. And Taiwanese PCB makers are keen on developing applications for niche market segments, with the satellite sector being a promising one for them.Memory shipments likely to disappoint in 2H20: DRAM and NAND flash shipments are likely to disappoint in the second half of 2020, due to weakening demand for Huawei smartphones, as well as shipments for notebooks hit by several component shortages, according to industry sources.Taiwan PCB output value up 3.4% in 1H20 despite headwinds: Taiwan's PCB industry recorded production of NT$298.1 billion (US$10.15 billion) in the first half of 2020, growing 3.4% on year despite impacts of the coronavirus pandemic and US-China trade tensions, according to data compiled by Taiwan Printed Circuit Association (TPCA).Taiwan PCB makers eyeing satellite applications: Taiwan PCB makers are eyeing new business opportunities associated with low earth orbit (LEO) satellites, especially those for ground supporting equipment, in the wake of SpaceX successfully launching over 600 Starlink internet satellites into the orbit, according to industry sources.

US electric vehicle (EV) startup Canoo has attracted investments from two Taiwanese companies - touch module maker TPK Holding and passive component maker Yageo.TPK will invest US$100 million in Canoo, while Yageo will participate in the equity investment of Canoo through its subsidiary Yageo Bermuda for an of US$10 million.Canoo, based in Los Angeles, focuses on EV design and development. Canoo has designed a modular skateboard to deliver the maximum vehicle interior space per footprint area while, through its proprietary skateboard technology, offering low development cost and design flexibility for its internal B2C car models and its B2B strategic partners, according to Yageo.Canoo is now projected to start its mass production in first-half 2022, said Yageo.Canoo has also announced a planned merger with Hennessy Capital Acquisition Corp IV (HCAC), a special purpose acquisition company, seeking to make Canoo a publicly listed company.Yageo said it has paid close attention to the development of automotive electronic technology in recent years, and has also continued to expand its global presence of automotive electronic components.Following the acquisition of wireless and automotive component maker Pulse Electronics in 2018, Yageo has just completed the merger of Kemet, an automotive passive components supplier in 2020.

The mounting US trade sanctions are driving HiSilicon to the brink, and many engineers have left the Huawei IC design arm's team in Taiwan. Huawei, struggling to survive the US trade ban, reportedly is looking to build its own 45nm chip fabs without using US technology, a move industry observers describe as "mission impossible." But in the device manufacturing sector, Chinese makers, reportedly with strong support from Apple, is fast expanding their presence in the US tech giant's ecosystem, the latest being Lens Technology's planned acquisition of smartphone chassis plants in China from Taiwan-based Catcher Technology.HiSilicon team in Taiwan shrinking: Huawei's chipmaking subsidiary HiSilicon has seen many of its staff in Taiwan leaving amid increasingly tough trade sanctions from the US on the Chinese tech group, according to industry sources.Huawei reportedly looking to build 45nm chip fabrication lines without US tech: China's Huawei reportedly is looking to build its own 45nm chip fabrication lines without US technology this year, which industry sources believe is "mission impossible."Catcher to sell smartphone chassis plants to Chinese firm: Catcher Technology has announced it plans to sell two of its smartphone chassis plants and related facilities in China to Lens Technology, a Chinese firm which is reportedly a cover glass supplier for iPhone devices.

Disconnected ICT Supply Chains: New Power Plays Unfolding written by Digitimes founder and president Colley Hwang has been greeted with overwhelming enthusiasm after its original Chinese edition was published in May 2020. The Chinese edition has had three printings within a little over two months. It is the only book in Taiwan and possibly in the whole world that takes an in-depth look into current global supply chain developments and offers the industry insights into the implications of the COVID-19 pandemic and US-China trade tension.At the request of readers, Digitimes recently organized a series of book reading events where participants could share feedback on the book and views on industry dynamics. The series of events also presented a glimpse into the thinking and practices of different industries amid the current market changes.At one of the book reading events, Hwang stressed he wrote the book out of a sense of social responsibility as a veteran industry analyst in Taiwan. He noted that the high-tech industry is a critical growth driver of the global economy so there is a wealth of in-depth high-tech market research. As Taiwan's high-tech sectors including semiconductor, PC and notebook manufacturing, play a pivotal role in the global supply chain, no one else in the world knows supply chain dynamics better than Taiwanese. With COVID-19 disrupting the global supply chain, the whole world is eager to figure out what is happening and what is lying ahead. Digitimes, as the global IT industry's only source of information about Taiwan's high-tech sectors, feels obligated to voice Taiwan's views to the rest of the world. This is also why Digitimes has made Hwang's book available also in English.Agreeing with Hwang, the host of the booking reading event, Frank Yeh, CEO of WPG Holdings, stated Taiwan-based firms have long focused on manufacturing and sales pitching while paying little attention to brand building. Going forward into the new era, Taiwan-based firms should begin efforts to strength brand building. The thinking is also what drives WPG to work with Digitimes to publish news releases in English, allowing global vendors to gain further insight into WPG's digital "blue ocean" strategies for the next decade.On top of strengthening brand building, Taiwan-based firms also need to unshackle themselves from old thinking and map out new operation strategies in the face of the current challenges in 2020. The participants at the event uniformly consider COVID-19 and US-China trade tension the two major factors dictating the global changes in 2020.First of all, COVID-19 has infected 17 million people worldwide with the death toll coming close to 700,000 as of the end of July. All participants in the event agreed that it is an unprecedented crisis to every firm, and businesses were in chaos in early 2020. Nevertheless, six months into the crisis, businesses are now more or less certain about the changes brought by the pandemic.With governments around the world implementing lockdowns, shipping costs are rapidly on the rise. Usual sea and air freight rates no longer apply, so transportation costs have to be recalculated. As transportation costs affect inventory costs as well, vendors generally keep a minimum inventory level. However, during the COVID-19 outbreak, most vendors ran out of stock and had difficulty getting supply from the market, leaving them with no choice but to shut down production or operation. As such, most participants think keeping a high inventory level will be an essential strategy for manufacturers going forward.Each industry sector has been impacted by COVID-19 in a different way depending on its characteristics. For example, food service and entertainment industries were mandated to shut down business with governments taking measures to control COVID-19 infections and thus they were the most seriously hit. Network communication and healthcare sectors were able to buck the trend during the pandemic and show growth. As firms try to keep business running while preventing COVID-19 from spreading, work-from-home (WFH) and remote monitoring have become critical means to maintain uninterrupted operation, which is not possible without network communication technologies. Healthcare becomes the most vital industry on the front line safeguarding human lives against COVID-19. In handling a large influx of patients during the pandemic, medical professionals have realized the importance of smart systems, so the smart healthcare sector will see rapid growth in the years to come.It remains uncertain when COVID-19 vaccines will be available, so the industries are expected to continuingly experience the changes mentioned above, which may even become the "new normal." However, the participants also noted despite its detrimental effects, COVID-19 will pass sooner or later, unlike the consequences of the US-China trade war that began in 2018.In view of the recent clashes between the US and China, the global industry is definitely moving toward the G2 framework. Going forward, vendors will operate on two systems – one for China and one for the rest of the world. Then, the challenge is how to allocate resources to run the two systems in parallel. How does Taiwan appeal to the global industry with its unique value? Hwang advised business leaders present at the event that Taiwan needs to develop a new market other than the US and China so that firms have a third strategic focus. ASEAN member states including the Philippines and Vietnam, as well as India look like good choices for now. He also pointed out that for their efforts toward ASEAN markets to generate results, Taiwan-based firms must understand and respect the characteristics of Southeast and South Asian countries as they are quite different from the US and China in cultural, industrial and political perspectives.In conclusion, Yeh gave the participants three words as takeaways from the event: reset, reimagine and relearn. He encouraged business leaders to go back to the drawing board, dare to dream big and learn from the future. He said businesses like to talk about the "blue ocean" but in fact there is no blue-ocean market but only blue-ocean strategy. In the face of COVID-19 and the US-China trade tension, Taiwan-based firms have to focus on building customer relationships and bring higher values to customers through differentiating products and services, so as to create win-win or even multi-win situations. By doing so, the Taiwan industry will find a new path to success.Colley Hwang, Digitimes founder & president (left) and Frank Yeh, CEO of WPG Holding (right)