TSMC's new 5nm Plus node reportedly will be able to enter mass production in the fourth quarter of 2020 with the process to be initially used for AMD's next-generation CPUs, while Kinsus is also looking to boost its FCBGA and AiP packaging businesses, eyeing the business opportunity from 5G equipment. However, the coronavirus pandemic will continue to haunt the IT market and is expected to weaken demand for backend IC materials starting the third quarter.TSMC to move 5nm Plus process to volume production in 4Q20: TSMC is expected to kick off volume production of chips manufactured on an enhanced version of its 5nm FinFET process, dubbed tentatively 5nm Plus, in the fourth quarter of 2020, according to sources familiar with the matter.Kinsus gearing up to expand presence in FCBGA, AiP fields: Kinsus Interconnect Technology will strive to grow its business in the FCBGA and AiP packaging fields this year seeking to better cash in on new business opportunities arising from 5G applications in 2020, according to the IC substrate maker.Backend material distributors warn of demand slowdown: IC fabrication and backend materials distributors are expected to face a slowdown in shipments starting third-quarter 2020 at the earliest due mainly to impacts of the coronavirus pandemic on terminal consumer demand and fresh US sanctions on Chinese tech giant Huawei, according to industry sources.

Taiwan's PC monitor shipments, fueled by rising work-from-home activities, are expected to undergo a sequential growth of 24% to 22.94 million units in the second quarter 2020 after such shipments plunging 20% on quarter and 9.4% on year in the previous quarter, Digitimes Research estimates.In the first-quarter 2020, shipments of monitors sized in 22- to 26-inch surged significantly to account for over 50% of Taiwan's total monitor shipments, with the ratio of above 27-inch model also edging up.Most Taiwan-based makers saw their shipments reduce significantly in the first quarter as the operations of their major production sites, mostly located in China, have been affected by the coronavirus pandemic, Digitimes Research said.TPV Technology and Qisda were the top-2 makers in Taiwan in the first quarter and both experienced around 20% sequential declines in shipments in the quarter. Foxconn Electronics and Wistron also suffered severe shipment declines in the quarter, resulting in falls of their rankings to behind those of LG Electronics and Samsung Electronics.Taiwan PC monitor shipments to rise in 2Q20Photo: Digitimes file photo

All of the iPhone models that Apple will launch later this year ae expected to come with OLED screens. Samsung Display reportedly will supply most of the OLED panels for the 5G iPhones, with LG Display and BOE sharing the rest. Qualcomm and MediaTek both remain confident about he 5G handset market this year, and they are expected to launch their respective entry-level 5G mobile SoCs in third-quarter 2020. Memory makers are also expecting recovery in consumer confidence in second-half 2020. Memory spot prices have already stablized.Samsung Display secures majority of panel orders for next-gen iPhone: Samsung Display reportedly have obtained the majority of AMOLED panel orders needed for the production of Apple's 2020 iPhone lineup, with LG Display and BOE Technology sharing the remaining orders, according to industry sources.Qualcomm, MediaTek to launch SoC solutions for entry-level 5G phones in 3Q20: Having just released their new or upgraded SoC solutions for the mid-range to high-end 5G smartphones recently, Qualcomm and MediaTek both are prepared to launch new SOCs for the entry-level 5G phone segment with the new offerings likely to come in the third quarter 2020, according to industry sources.Memory spot prices stabilize: Memory spot market prices have stopped falling, indicating consumer sentiment could be improving, according to industry sources.

XRSpace, a VR headset specialist founded by former HTC CEO Peter Chou three years ago, has launched what it claims is the world's first 5G VR headset for the mass consumer market.The XRSpace Mova VR headset allows consumers to socialize, work and play together in both private and public spaces that are contextual, familiar, immersive, interactive and expandable, the company said in a statement.The goal of XRSpace is to take XR to the mass market by redefining how people connect, socialize, and collaborate through VR headsets by simplifying the hardware and user experience, Chou said at a press event.The Mova is powered by a Qualcomm Snapdragon 845 mobile XR platform, and fully portable with 5G, LTE, or Wi-Fi connection, the vendor said. Requiring no additional controllers to navigate the virtual world, the Mova can be operated through use of hand motions and gestures, it said.The Mova VR headsets will be available in Taiwan's telecom channels starting third-quarter 2020.XRSpace founder Peter Chou introducng the Mova VR headsetPhoto: Michael Lee, Digitimes, May 2020

The display industry is having a tough time this year thanks to the coronavirus pandemic. But makers in the upstream supply chain are having extra pressure from South Korean LCD panel vendors' moves to close production lines, reducing demand for glass substrates and other materials. In China's handset market, which has also been hard hit by the pandemic, major local vendors are learning from Apple's marketing strategy as shown in its launch of the new iPhone SE, and are banking on low-price 5G smartphones to shore up their sales. But much uncertainty is still lying ahead in the handset market. Taiwanese handset-use HDI board makers still see significant orders at present, but visibility beyond second-quarter 2020 is opaque.Glass substrate landscape changing in line with reductions in Korea LCD fabs: The global landscape for the supply of display glass substrates is changing along with the moves by Samsung Display and LG Display to gradually withdraw from the LCD panel market.Huawei, Xiaomi roll out cheaper 5G phones in China: Competition in China's 5G phone market has extended to the entry-level to mid-range segments earlier than expected as vendors including Huawei, Xiaomi and Hisense have rolled out 5G models priced between CNY2,000-3,000 (US$280-421), according to market observers.Taiwan handset HDI board makers cautious about 2H20: Taiwan's makers of handset-use HDI boards have yet to feel the pinch of waning handset sales so far this year and are expected to enjoy stable shipments through second-quarter 2020, but they are cautious about prospect for the second half of the year, according to industry sources.

Apple is reportedly looking to incorporate ambient light sensors in new AirPods, with ASE Technology likely to land backend orders for packaging the ALS. ASE is poised to apply its SESUB-based packaging technology to next-generation TWS earphones.ASE Technology likely to process ALS devices for new AirPods: Apple is expected to incorporate ambient light sensors (ALS) in next-generation AirPods devices in the coming 1-2 years, and Taiwan's ASE Technology may handle the backend process for the new component, as it has moved to purchase more packaging machines, according to industry sources.ASE poised to apply SESUB-based SiP tech to new TWS devices: Taiwan's backend leader ASE Technology is poised to apply its SESUB (semiconductor embedded in substrate)-based SiP packaging technology to next-generation TWS (true wireless stereo) earphones to be rolled out by Apple, after being contracted to handle high-end mmWave AiP (antenna in package) process for 5G iPhones and tablets, according to industry sources.

Smart manufacturing, in the trend of Industry 4.0, should be implemented in four stages: automation, digitization, network-based connectivity, and fully smart, according to Li Junqi, chairman of Foxconn Industrial Internet (FII) which is affiliated to Foxconn Electronics.Automation of equipment is introduced in the first stage, according to Liu. Then, sensors are used to collect data on operation of equipment and production for analysis - the digitization stage. In the third stage, the Internet is used to connect upstream and downstream makers in the entire supply chain. The final stage sees accumulated big data and AI models enable simulation and realization of smart manufacturing.Foxconn Electronics chairman Liu Young-way has proposed Foxconn 1.0, Foxconn 2.0 and Foxconn 3.0 for digital transformation of the Foxconn (Hon Hai) Group's business operation in three stages, with Foxconn 1.0 focusing on optimization of existing operation, Foxconn 2.0 on smart decision making, Foxconn 3.0 on upgrading business operation by stepping into core technologies of electric vehicles (EV), digital medical care and robots.

There have been speculations about Apple introducing AR glasses, with some putting the launch in the second half of this year, and others in 2022. Sources from supply chains claim Apple's AR glasses are likely to launch in second-half 2021. Apple is also said to be soon intoducing its new over-ear headphones, fueling momentum for its rigid-flex board suppliers. For backend services providers, orders from the memory module houses will be weak till June as a result of tight supply of raw wafers.Apple likely to roll out AR glasses in 2H21, sources claim: Apple is likely to roll out its augmented reality (AR) glasses in second-half 2021, sources at supply chains have claimed.Rigid-flex PCB makers to see surge in orders for AirPods 2 in 2H20: Rigid-flex PCB manufacturers have seen orders for Apple's AirPods 2 slow down since 2020, but believe orders will return to year-ago levels in the second half of the year, according to supply chain sources.Memory backend specialists see orders lose momentum: Memory backend specialists have seen customer orders slow down recently, with the orders likely to remain stagnant till June as their clients, mainly makers of memory modules, are suffering weak supply of raw memory wafers from upstream suppliers, according to industry sources.

Digitimes Research has lowered its global smartphone shipment forecast for 2020 to 1.15 billion units, down 15.4% from 2019's 1.36 billion because of the impacts from the coronavirus pandemic.Weak end-market demand will undermine smartphone brands' orders to ODMs in the year with overall smartphone ODM shipments in 2020 to slip 13.6% on year to arrive at only 260 million units, according to Digitimes Research's new smartphone report.The worldwide top-3 smartphone ODMs are China-based Wingtech, Huaqin and Longcheer, and the three manufacturers are expected to continue expanding production capacities in China, Southeast Asia and India in 2020.The three ODMs' combined share of global smartphone shipments in 2020 is expected to rise to a new record, but each of them will see shipments in the year slip over 10% on year because of the pandemic's impact on end-market demand for smartphones, Digitimes Research's figures show.At the moment, Apple and Vivo are still developing their smartphones completely in house, and therefore, ODMs have been striving keenly for 4G and 5G smartphones orders from brands such as Samsung Electronics, Huawei, Oppos, Xiaomi and Lenovo.

The first half of a year has been usually the slow season for graphics cards, but this year the coronavirus pandemic-triggeed stay-at-home needs has shored up demand. With AMD and Nvidia set to launch their next-generation GPUs in September, graphics cards vendors are expected to cut prices for older-generation products, stimulating demand further in third-quarter 2020. The pandemic-fueled demand for notebooks is also expected keep NAND flash memory prices stable in the third quarter. And the fresh US trade sanctions on Huawei is not deterring the Chinese tech giant from making building 5G networks around China. For semiconductor, Digitimes has an exclusive interview with TSMC's R&D senior VP Cliff Hou, who reveals the principles and issues concerning the foundry's recruitement and R&D. Graphics card makers see shipments boom: Graphics card manufacturers including Asustek Computer, Micro-Star International (MSI) and Gigabyte Technology are expected to see their shipments continue ramping up and grow through the fourth quarter of 2020, according to industry sources.NAND flash contract prices to stay flat in 3Q20: NAND flash memory contract prices are expected to stay flat in the third quarter, as demand for notebooks remains stable, according to Wallace Kou, president and CEO of Silicon Motion Technology.Huawei expects to build 800,000 5G base stations in China by 2020: Huawei has built 200,000 5G base stations so far in China and the number is set to hit 800,000 by 2020 covering over 340 cities, according to company's wireless network vice president Gan Bin.PhD shortage to challenge TSMC: Q&A with company senior VP of R&D Cliff Hou: Shortages of personnel with PhDs will be a challenge facing TSMC as well as Taiwan's chipmaking industry by 2030, according to Cliff Hou, company senior VP of technology development and corporate research under R&D.