Stay-at-home needs triggered by the coronavirus-imposed lockdowns in many parts of the world have boosted demand for enterprise and educational notebooks and tablets. Taiwan-based notebook ODMs now expect robust shipment growth in second-quarter 2020. But many of them expect the growth to be shortlived for a mature market that can hardly support their long-term growth. They remain keen on developing non-notebook devices to shore up profitability. Also being propelled by stay-at-home economy is the memory sector, which has seen significant demand from the server, gaming, notebook and STB sectors.Notebook ODMs eyeing robust shipment increases in 2Q20: Taiwan's notebook ODMs are poised to see strong shipments in the second quarter of 2020, particularly those of enterprise and educational models to meet massive remote work and learning needs amid the coronavirus pandemic, allowing them to raise shipment projections for the first half of the year, according to industry sources.Taiwan ODMs stay keen on expanding non-notebook sales: Taiwan's ODMs including Compal Electronics and Quanta Computer will continue to generate more revenues from non-notebook segments for further profit improvement in 202 despite recent strong demand for notebooks, according to industry sources.Memory demand propelled by stay-at-home economy: The coronavirus outbreak has spurred stay-at-home economy, driving demand for related applications such as servers, commercial notebooks, gaming consoles and set-top boxes (STB), according to sources at memory backend houses.

Taiwan Association of Machinery Industry (TAMI) has worked with ICT industries and academic organizations to formulate short-, mid- and long-term strategies for developing smart machinery in Taiwan, according to TAMI chairman Alex Ko.Short-term strategies focus on equipping machines with Internet connectivity and visual displays of operating conditions; mid-term ones on establishing a machinery cloud and developing industrial sensors; and long-term ones on setting up an AI-based smart machinery knowledge bank, Ko said.Smart machinery is a cornerstone of smart manufacturing, Ko noted. For Internet connectivity for data collection and visual displays, the government and TAMI have been promoting installation of SMBs (smart machine boxes) on old and new machines since 2018, with SMBs expected to be installed on nearly 10,000 machines cumulatively in 2022, Ko indicated.The mid-term goals of setting up an open cloud computing platform seek to facilitate development of various software solutions for use in analysis of collected data mostly via download. Besides, in view of heavy reliance on expensive imported industrial sensors, local development and production of such sensors will be promoted to reduce cost.For the long term, a bank of AI-based smart machinery knowledge generated from accumulated data and analysis results in the two preceding stages will be established. The smart machinery knowledge can help machine makers extend business operation from producing machines to providing system integration services.Machinery makers are expected to play a major role in the stage of short-term strategies and academic organizations in the stage of long-term strategies, while private organizations and government-sponsored research units can function as a bridge between the former two in the stage of mid-term strategies, Ko analyzed.With smart machines as main driving power, Taiwan's machinery production and exports in 2020 may each grow 5-10% in value on year, TAMI noted.TAMI chairman Alex KoPhoto: Michael Lee, Digitimes, March 2020

A university research team has been developing AI-based analysis of general blood data to screen out phlebotomy cases with high risks for blood cancer.The Taipei Medical University team uses machine learning to analyze cell population data of CBP (complete blood picture) produced from regular blood inspection via phlebotomy, explained the team leader Syed Abdul Shabbir.The team cooperates with a medical center affiliated with South Korea's Konkuk University, which povides 457 cases of malignant blood tumor and 425 ones of benign blood tumor for training the machine, Shabbir said.Seven machine learning algorithms have been used in the AI-based analysis: SGD (stochastic gradient descent), SVM (support vector machine), RF (random forest), DT (decision tree), linear regression, logistic regression and ANN (artificial neural network), said Shabbir, an associate professor at the Taipei university's Graduate Institute of Biomedical Informatics.Based on tests of the 882 cases, ANN shows the highest accuracy level of 93.5%, he said.As blood cancers are comparatively uneasily diagnosed, most of detected blood cancers are in stage 3 or 4 and thus it is too late for the best medical treatment. The AI-based analysis can detect high risks for blood cancers based on conventional phlebotomy.Taipei Medical University associate professor Syed Abdul ShabbirPhoto: Mark Tsai, Digitimes, March 2020

TexTip, a startup offering an online AI platform for selecting fabrics, has introduced a new use of its services in the wake of the coronavirus pandemic: customized covers for face masks.TexTip, incubated by HerMin Textile, has launched an app for consumers to choose gauzelike fabrics and matching designers to customize covers that can prolong the use of surgical face masks.TexTip has set up a database of digital images of Taiwan-made fabrics available for online ordering. TexTip said it offers over 1,000 fabrics suitable for use to make mask covers, with fabric makers including HerMin, Chia Her Industrial, Everest Textile, Merryson and Asia Fit International.The Taiwan government has actively helped local makers expand production of face masks to cope with outbreak.A face mask cover made of Taiwan-produced fabricPhoto: TexTip

Demand from the server sector has been fueld by work- and study-from home activities in the wake of the coronavirus pandemic. But IC designers have recently seen a slow-down in orders for server applications, sending them worrying about demand in the second quarter of 2020 if the pandemic prolongs. Intel is expected to release new 14nm CPUs in April, but demand may be dampened by the pandemic. MSI remains optimistic that new products from Intel, AMD and Nvidia will boost its sales in the second quarter.Taiwan IC design houses see orders for servers slow down: Taiwan-based IC design houses engaged in the supply chain for servers are expected to see orders coming from the sector buoy their sales during the second quarter of 2020, but have recently seen orders slow down from brand clients based in North America, according to industry sources.Intel to release new 14nm CPUs in April: Intel is set to unveil its new 14nm processors and chipsets in April, but the coronavirus pandemic may seriously hinder end-market demand for related PCs and motherboards, according to sources from the upstream supply chain.MSI expects small drop in 1Q20 revenues and rising sales starting April: Micro-Star International (MSI) expects revenues to drop less than 10% on year in the first quarter of 2020 and will see its sales gradually pick up starting April with the releases of new products from Intel, AMD and Nvidia, according to company chairman Joseph Hsu.

There has been speculation that Apple is looking to delay the launch of its next-generation iPhones due the impacts from the coronavirus pandemic, but its PCB suppliers say they have not received any notification from the client about delaying production for the 5G iPhone. Despite their claims, the PCB sectors and many others have seen the pandemic blur their order visibility. Tripod Technology is wary of the virus' impacts on demand although it saw record sales and profits in 2019, and so are IC designers. The uncertainty about demand is not preventing manufacturers in China from resuming production, but they have difficulties recruiting workers.Apple PCB suppliers dismiss speculation about 5G iPhone delay: Taiwan's PCB makers in the supply chain of 5G iPhones have denied reports claiming they have been asked to postpone volume production by two months in line with a likely launch delay for Apple's new-generation devices amid the coronavirus pandemic, according to industry sources.PCB maker Tripod cautious about 2020: Taiwan-based PCB specialist Tripod Technology has posted record revenues and profits for 2019, but it has turned cautious about its business prospect for 2020 as the coronavirus pandemic has led to many uncertainties on the demand side.Taiwan fabless chipmakers see unclear order visibility for 2Q20: Taiwan-based IC design houses remain cautious about overall customer demand in the second quarter judging from limited order visibility, according to industry sources.Makers in Kunshan, China face rising costs: Manufacturers with plants in China's Kunshan have restarted production, but face rising operating costs in the second quarter, according to industry sources.

Fu Chun Shin Machinery Manufacture (FCS), with help from Taiwan government-sponsored Industrial Technology Research Institute, (ITRI) has developed a smart sensing solution for online monitoring of plastic injection molding processes to assure quality of injection molded plastic products.The solution uses sensors of mold cavity pressure to detect dynamic changes in flowing behavior of molten plastic materials inside mold cavities, and parameters from the detection are visually displayed for real-time monitoring of operating conditions of plastic injection molding machines, said the plastic injection molding machine maker. Besides, the solution enables traceability of injection molded plastic products, FCS noted.FCS has partnered with clients to adopt the solution since 2019 and will keep modifying the solution based on results of its performance, the company indicated.FCS has also cooperated with startup Thingnario to develop AI-based analysis for determining the optimal time of adding lubricant oil to plastic injection molding machines.The addition of lubricant oil is to minimize physical wear of bearings inside such machines and the time of addition was judged by experience technicians in the past, FCS said.Thingnario has established the correlation between the adding lubricant oil and vibration of machines, and therefore has installed vibration sensors to collect data on vibration at every injection molding process. Through AI analysis, the optimal time of adding lubricant oil is after a machine runs for 9,500 injection molding processes, FCS indicated.

The coronavirus pandemic is threatening the lives and livelihoods of many, but despite the uncertainty lying ahead of the IT industry, Taiwan-based ODM Wistron - a major maker of notebooks and servers - remains optimistic that its sales will grow in 2020. The outbreak in China has convinced many makers of the need to relocate some production lines to other countries, but Taiwan-based PCB makers are reluctant to move out, as their new plants in China are set to come online. The memory sector has been a lucky one in the face of the outbreak, with module makers poised to report profit growth for first-quarter 2020.Wistron expects sales growth in 2020: Despite the coronavirus pandemic, Wistron chairman Simon Lin still expects the company to enjoy another year of revenue growth in 2020.Taiwan PCB makers to stay put in China despite pandemic: Taiwanese PCB makers, despite the coronavirus pandemic's impacts, still expect 5G handset demand to pick up later this year, and remain reluctant to move production out of China in the near future, according to industry sources.Memory module firms to post profit growth in 1Q20: Memory module houses are expected to post impressive profit and margin results for the first quarter of 2020, driven by chip price increases, according to industry sources.

The US-China trade war last year sent many vendors, including Apple, starting making plans to have more of their products made outside of China. While the relocation has yet to complete, the coronavirus pandemic has further convinced them of the need to diversify their production bases. Meanwhile, major ODMs have resumed most of their capacity in China,with the notebook and server supply chains stepping up efforts to fulfill shipments that have been deffered by the outbreak. Inventec expects server and notebook shipments to shore up its sales in second-quarter 2020. But there is so much uncertainty lying ahead. TSMC has yet to revise its sales guidance for 2020, but that may change if the outbreak prolongs.Apple accelerating production relocation outside China, say sources: Apple is reportedly accelerating plans to diversify its manufacturing risks by removing more of its production out of China, with sources from the supply chain claiming that the vendor is relocating some capacity for iPhone to India and acoustic devices such as AirPods and HomePod to Vietnam.Inventec upbeat about 2Q20: Inventec expects to post substantial revenue growth sequentially in the second quarter, thanks to a pull-in of orders for notebooks and servers.TSMC may revise 2020 outlook: If the coronavirus outbreak fails to be under control by June, TSMC will likely revise its sales outlook this year despite its advanced technology leadership, according to market sources.

Demand for software as a service (SaaS) has been on the rise, highlighted recently by needs for remote working in the wake of the coronavirus outbreak, which has prompted more firms to adopt cloud-based collaborative operations, according to Kdan Mobile Software founder and CEO Kenny Su.In particular, demand for mobile device-based collaborative work software solutions developed by Kdan in the China market has drastically increased from 300,000-400,000 downloads a month usually to a double level of 600,000-800,000 ones.In a recent interview by Digitimes, Su talked about the prospects of SaaS and how his Taiwan-based compnay has expanded overseas.Q: What's the progress of Kdan's overseas expansion?A: Founded in 2009, Kdan is headquartered, along with an R&D center, in Tainan, southern Taiwan, and has its Asia operational center in Taipei. Kdan has set up two operational bases in China, one in Japan and one in the US. Kdan currently has 130 employees in total, 80 of them are in Taiwan.Kdan in April 2018 finished series A funding, raising venture capital of US$5 million from US-based WI Harper Group, Taiwan-based Darwin Venture Management and Japan-based Accord Ventures. In 2019, Kdan set up the operational base in Japan mainly for cooperation with Sourcenext, the largest Japan-based software distributor, to tap the Japanese market.Currently, the US is Kdan's largest market, accounting for 40% of total download volumes and revenues, followed by Europe with 25%, China with 20% and Japan with 5%.Among Kdan's product lines, Document 365 cross-device app for viewing, signing and editing PDF documents, and Creativity 365 cross-device content creation suite consisting of five creation apps are the major sources of sales. Demand for DottedSign, an e-signing service launched in fourth-quarter 2019, is growing fast with over 50,000 downloads and more than 20,000 registered members so far. Most of users have continued use and been willing to pay for the e-signing service.Q: How does Kdan manage employees of different cultural backgrounds?A: Kdan adopts an OKR (objectives and key results) model as used by Google and several international enterprises by setting company's visions and missions as the common goals for employees to strive for. Every employee, including me, lists 3-5 objectives for a certain stage, and these objectives together with what has been done should let the others know to secure transparent internal management. For internal communication, Kdan has set up a Slack-like communication platform across departments and offices for all employees at different locations to communicate via multiple channels for collaboration, with any discussion and talk being transparent.Q: Why did Kdan transform its business model?A: Kdan had originally offered paid apps, but in view of increasing competition, offered app versions with basic functions for free download and those with advanced functions on a chargeable basis. Viewing that Apple and Google had offered subscription schemes, Kdan followed suit in 2015.In addition, Kdan has used a tracking model to ascertain whether users, after free trial use, need advanced functions and are willing to pay. Currently, over 80% of initially trial users have moved on to use chargeable advanced functions.Kdan has extended operation from B2C to B2B 2-3 years ago. Compared with B2C, B2B marketing takes a much longer time, but many enterprise users usually stick to original suppliers. Basically, Kdan provides cloud-based services for small- to medium-size enterprises and licenses customized APIs (application programming interfaces) or SDKs (software development kits) to large-size ones for them to introduce Kdan-developed software to their internal operational processes.Q: What are Kdan's visions and goals in the next 10 years?A: There are many China-based SaaS (software as a service) providers with market values of over CNY10 billion (US$1.43 billion) each, but there are no Taiwan-based SaaS ones. Kdan, with business beginning from the Asia market, aims to become the first Taiwan-based global SaaS company. Kdan plans to tap the Singapore market as a stepping stone into the Southeast Asia market.Global demand for apps from individual and enterprise users is expected to double every 3-5 years along with fast growing digital transformation, and therefore Kdan expects substantial growth in revenues over the next 3-5 years. Kdan currently has 7-8 million monthly active users and has reached more than 200 million downloads from mobile devices cumulatively.In 2020, Kdan aims to obtain ISO 9001 quality management system certification and will hike quality for internal operational process, enhance brand reliability, start series B funding and evaluate feasible targets of mergers.While US-based SaaS brands will remain leaders in terms of global market share, Kdan is confident of reaching larger market shares in Taiwan, Singapore, Japan and other Asian countries.Kdan Mobile Software founder and CEO Kenny SuPhoto: Fu Shih-min, Digitimes, March 2020