Pumpkin Studio, a Taiwan-based creator of location-based VR titles, has adopted a few strategies to solve user-related problems facing operation of VR games in a bid to promote development of VR games, according to the company.Common problems include: user dizziness possibly caused by VR headsets that are too heavy to be worn for a long time; expensive game prices; and highly similar content with little differentiation, Pumpkin Studio said.The company said its strategies are to develop arcade machines of VR games, enable VR games for online/offline social linkage, lower pricing for playing VR games.As VR game machines are relatively complicated for maintenance, Pumpkin Studio adopts general arcade machines equipped with coin slots and operating interfaces, but replaces the displays with VR headsets and uses its own VR immersion games, the company indicated.VR game operators, in order to focus on experience of immersion, have launched many shooting games that may lose freshness to players shortly, and cannot be shared on social media, Pumpkin Studio explained. Particularly for social networking, Pumpkin Studio uses smartphone apps to link offline (arcade game machines) to online (PC-based VR platforms) to enable players to use both, and to choose first-person games or multi-player ones at arcade VR game machines.Pumpkin Studio will launch Quantaar, a third-person action VR game, at the end of 2020, and is in talks about loading the game on PlayStation VR platform for cross-device linkage among PlayStation consoles, arcade machines and PCs, the company indicated.As compared with NT$200-300 (US$6.6-9.9) for playing a theme park VR game, playing of Quantaar at arcade machines will be priced at about NT$50 to attract more users, Pumpkin Studio said.Pumpkin Studio offered in-house-developed VR games for experimental playing at Syntrend Creative Park in Taipei in late 2019, attracting more than 2,000 trial users in 12 days, the company noted, adding that based on a questionnaire survey of about 1,000 trial users, 90% hoped to experience such games again.Pumpkin Studio-developed arcade VR game machines, with players wearing VR headsetsPhoto: Company

Digitimes Research has revised downward its 5G smartphone shipment forecast for the second quarter and also all of 2020 in the wake of the coronavirus impact.With the outbreak disrupting production and dampening consumer confidence, 5G handset shipments in China in the second quarter of 2020 are expected to slip 26.6% from the pre-epidemice forecast of 30 million units to 22 million units.The proportion of 5G smartphone APs shipped to China-based smartphone brands has also been reduced to only 9.5% for the first half of 2020 with 4G chips to account for 85% of the shipments.Digitimes Research believes if China's coronavirus outbreak can be gradually contained starting the second quarter of 2020, China will still be the biggest market for 5G handset shipments in 2020.With Chinese smartphone brands eagerly looking to raise 5G handsets' penetration rate in China with inexpensive 5G devices and Qualcomm, MediaTek and Samsung pushing for the mass production of their mid-range 5G application processors, China-based smartphone brands are expected to be able to release 5G smartphones that are priced between US$280-360 starting the second quarter of 2020.Qualcomm, MediaTek and Samsung have begun mass production of mid-range to high-end 5G SoCs since the fourth quarter of 2019. Qualcomm's Snapdragon 765/765G chips have the most comprehensive support on 5G spectrums, while MediaTek's Dimensity 1000L is primarily supporting Sub-6GHz as the chip is targeting mainly the China market. Samsung's Exynos 980 is highly customized for Vivo's X30 smartphone.At the moment, mid-range to high-end 5G APs feature an ASP six folds that of 4G ones, making it difficult for 5G smartphone prices to come down. With the coronavirus outbreak undermining China's consumer demand, mid-range 5G APs with friendlier pricing are expected to become a key driver in boosting 5G smartphone shipments in 2020.Digitimes Research believes the AP suppliers will begin shipping their mid-range 5G chips in the second quarter of 2020 and will not be deterred by the epidemic. Huawei, Xiaomi, Oppos and Vivo will start releasing their 5G smartphones priced between US$280-360 in the second quarter of 2020, driving up China's 5G smartphone shipments.Digitimes Research also expects Taiwan Semiconductor Manufacturing Company's (TSMC) tight capacity in the first half of 2020 will be eased because of 5G handsets' reduced shipments.

The coronavirus outbreak may have created a temporary set in the development of 5G in China, but Digitimes Research believes construction of 5G infrastructure is a long-term bid that that will not be derailed. In fact, Taiwan's semiconductor sector is more concerned about the impacts from the US's possible bid to impose stricter trade sanctions on Huawei. At any rate, the US trade sanctions and the epidemic may be motivating Taiwan's PCB makers into diversifiying their production bases. Coronavirus outbreak may not affect 2020 5G capex if contained by mid-year: While the cancellation of MWC 2020 and the locked-down management in many cities in China due to the coronavirus outbreak have raised concerns about the development of 5G, the epidemic may end up with limited impacts on the operations of telecom firms as well as the deployments of 5G infrastructure in 2020 if it can be contained by mid-year, according to Digitimes Research.Taiwan IC sector bracing for looming tougher trade ban on Huawei: Taiwan's semiconductor supply chain players are bracing for stricter trade restrictions being mulled by the US against Huawei, which could create even worse impacts than those brought by the coronavirus outbreak, according to industry sources.Taiwan PCB makers urged to accelerate capacity relocation amid outbreak: Taiwan's PCB makers are facing higher risks from the coronavirus outbreak thanks to relatively heavier production deployments in China than their peers in Japan and South Korea, prompting calls for them to accelerate capacity relocation from China.

While the cancellation of MWC 2020 and the locked-down management in many cities in China due to the coronavirus outbreak have raised concerns about the development of 5G, the epidemic may end up with limited impacts on the operations of telecom firms as well as the deployments of 5G infrastructure in 2020 if it can be contained by mid-year, according to Digitimes Research.It is obvious that the deployments of 5G networks in China will be affected as many Chinese cities currently being locked down are those that have been given priority for installation of 5G base stations, Digitimes Research has found.However, judging from the experience that gained from the SARS outbreak in 2003, quarantine and other isolation measures will eventually deepen people's reliance on communication services in terms of increased mobile subscribers, mobile revenues and voice traffic.In addition, the deployments of 5G networks are long-term infrastructure projects that may be only temporarily interrupted by short-term incidents, and China's telecom operators are poised to expand their capex significantly to accelerate their 5G deployments in the second half of 2020 provided the epidemic is under control by June, says Digitimes Research.Nevertheless, if the epidemic continues into the second half of the year, the development of the 5G industry in China may not accelerate until 2021.The development of the global 5G industry had been fast before the outbreak. By the end of 2019, a total of 61 telecom operators worldwide had kicked off commercial 5G services, with the availability of 5G end-market devices totaling 208 items, Digitimes Research notes.Accumulated number of 5G base stations in China, 2019-2025 Source: Digitimes Research, February 2020

Everyone in the ICT sector had expected the 5G era to get off to a flying start in 2020 when the coronavirus hit. Major players continue to make deployments for 5G, but cannot be sure when the momentum will actually pick up. Now Taiwan-based chip vendor MediaTek, whose major market is in China, expects weaker growth for 2020. But Acer is confident that the notebook market is poised to have a strong rebound in demand in the second half of the year. For AMD, it is likely to see strong growth in sales, as PC OEM and brand vendors, and motherboard and graphics card manufacturers continue to step up their development projects for AMD's Zen 3-based Ryzen CPU series manufactured using TSMC's 7nm EUV process.MediaTek to see 2020 growth constrained: The coronavirus epidemic has cast a shadow over MediaTek's competitiveness in the 5G SoC market this year, as China is the chipmaker's largest market, according to market observers.Global notebook market poised for rebound in 2H20, says Acer chairman: The global notebook market is poised for a strong rebound in the second half of 2020 as the coronavirus outbreak has not resulted in severe impacts to demand in other parts of the world including Australia and Europe as compared to the harm that has brought to China, according to Acer chairman Jason Chen.Demand for AMD 7nm EUV processors remains strong: Demand for AMD's new 7nm EUV processors remains robust, with development projects for the chips commenced by PC, motherboard and graphics card makers this year set to be 10-20% higher than the levels in 2019, according to industry sources.

Smart vending machine solution developer Yallvend has developed an Internet-connected mask vending machine for trial use at some places in Taipei amid the coronavirus outbreak, according to company CEO Duncan Huang.The Taiwan government has put into force a rationing scheme where surgical masks - which have been in serious shortages since the outbreak - are now only available at National Health Insurance (NHI) program-designated pharmacies around the country. Currently people need to scan their personal NHI cards when buying srugical masks (two pieces per week).People have to use their smartphones to scan QR Code on the vending machine to let the machine authorized to use the corresponding smartphone cameras, Huang said. Then they first scans photos on their ID cards and scan their faces to let image recognition check if scanned faces coincide with the corresponding photos, Huang noted. After the double checking for personal identification, they can press the machine's button to get masks, Huang indicated, adding that the machine delivers masks without any charge for the time being.The whole operating process takes up to one minute, Huang said. This is because the operation is based on web pages instead of App which has more strict control on users' personal data than the former, Huang noted.Huang admitted that as the current mask rationing scheme is proceeding rather smoothly, it is actually unnecessary to deploy such vending machines. Therefore, the machine is developed on an experimental basis for further development of smart vending machines for use in hospitals, Huang indicated.Yallvend-developed Internet-connected mask vending machinePhoto: Yihan Li, Digitimes, February 2020A user scan the photo on ID cardPhoto: Yihan Li, Digitimes, February 2020

Smartization has become a key development strategy across all types of businesses. However, as different industries operate on different systems and in different environments, the design of smart systems has to incorporate a certain degree of customization to be able to accommodate business needs. For this reason, system developers must have a deep understanding of the industry. The Research Center for Information Technology Innovation of National Taiwan University of Science and Technology (NTUST), led by Kai-Lung Hua, a professor of the university's Department of Computer Science and Information Engineering, has always maintained a close connection with Taiwan's high-tech industry. After the participation in the Taiwan Tech Global Research & Industry Alliance (Taiwan Tech GLORIA) project in 2018, the center has engaged in collaborations with Intel through assistance from the project, wherein Intel provides artificial intelligence (AI) tools, businesses raise issues that they want to resolve and students come up with a solution. Such collaborations help students strengthen real-world skills and businesses develop a talented workforce.According to Hua, leveraging AI, computer vision, AR/VR, IoT and other innovative technologies, the center designs smart systems for use by enterprises that address their pain points. Backed by the university, the center has actively engaged in collaborations with Taiwan's industries since its establishment and has successfully helped firms in different fields develop solutions. For example, amid the recent smart manufacturing trend, the NTUST team designed a production equipment prognostics system for global leading electronics manufacturer Inventec to incorporate into its server production line. By putting sensors in the production equipment and connecting them to a network to keep track of equipment operation conditions, the system can estimate time-to-failure based on big data analytics so that engineers can conduct maintenance during scheduled production shutdown, thereby minimizing the chance of unexpected breakdown and maximizing equipment availability. In another smart manufacturing scenario, the NTUST team worked with a high-tech firm and designed a system to identify factory worker actions from images captured on video cameras. The data is then compiled and provided to factory managers for them to monitor if the workers are following standard operating procedures set by the firm to boost yield and ensure labor safety.Aside from smart manufacturing, the computer vision and big data analytics technologies developed by Hua's team have also been used in automotive electronics, gaming and e-commerce. For automotive application, the team's sensor solution combining temperature detection and millimeter wave communication is used in an advanced driver-assistance system (ADAS), allowing it to quickly identify pedestrians, vehicles and objects on the road.For gaming and e-commerce, the team makes use of big data analytics and AI to help firms discover the ideal business strategy. For example, by analyzing the time it takes gamers to advance from one level to the next and social media posts, game developers can set the game difficulty level and treasure prices to thereby optimize gaming experience and increase gamer stickiness. For e-commerce, the team analyzes consumer behavior and spending habit and provides the results to e-commerce operators to serve as the basis for product pricing and marketing strategy planning.Hua noted that most academic researchers lack experience in the world of business, so it is challenging for them to turn research results into commercial products. Having extensive experience in the IT industry is one advantage of the NTUST team. This allows the team to come up with solutions that meet business requirements and systems that can be up and running in a snap.Having long engaged in close interactions with the industry, NTUST's Research Center for Information Technology Innovation is able to further expand its scope of industry-academia collaborations after its participation in the Taiwan Tech GLORIA project in 2018. Its recent partnership with Intel was made possible by the Taiwan Tech GLORIA project. Using development tools Intel provides, NTUST students design solutions to issues that businesses encounter during operation. Through such a collaboration model, students get familiarized with Intel products while learning new and practical skills and businesses get their issues resolved. Hua's team also has multiple ongoing industry-academia collaboration deals in addition to the one with Intel. With help from the Taiwan Tech GLORIA project, the team will continue to strengthen its collaboration with the industry and foster talent with real-world skills for the Taiwan industry.Kai-Lung Hua, professor, Department of Computer Science and Information Engineering, NTUSTPhoto: Kai-Lung Hua

Taiwan-based panel maker AUO suffered heavy losses in 2019, but shipments of large-size niche applications gew sharply during the year. AUO now is banking on 8K large-size panels to rejuvenate its business in 2020. For many, 8K displalys and 5G communication will be two major growth drivers this year and beyond. The coronavirus outbreak may have created some impacts, but deployments in the 5G sector continue for the long- term. Qualcomm has just released its 5nm 5G modem, X60, with ASE Technology set to become one of its major backend partners for the new solution. In the semiconductor sector, MOSFET suppliers are keen to obtain sufficient support from 6- and 8-inch foundries.AUO remains focusing on 8K, large-size panels in 2020: AU Optronics (AUO) has said that that it will continue its established strategy to focus on developing 8K and high-resolution large-size panels in 2020 expecting to see exponential shipment growth of these items in the year, according to company sources.ASE Technology to secure backend orders for Qualcomm 5nm 5G modem chips: Qualcomm has newly unveiled the world's first 5nm 5G modem-RF system, the Snapdragon X60, to be paired with its latest, third-generation 5G mmWave antenna module, QTM 535, with Taiwan's major OSAT firm ASE Technology Holding set to enter the backend supply chain for both new offerings, according to industry sources.Taiwan MOSFET firms striving for capacity support: Taiwan-based MOSFET chip specialists, which ship mainly to PC and notebook application segments, are striving for capacity support from their foundry partners particularly 6-inch ones, according to industry sources.

The world's top-5 notebook brand vendors saw their combined shipments (excluding detachable models) fall over 30% sequentially in January 2020, due to a combination of negative factors including the coronavirus impact and seasonality, according to Digitimes Research.The fact that the Lunar New Year holidays were in January also reduced output from notebook ODMs during the first month of 2020.Dell leapfrogged HP to the top of vendors rankings, thanks to better sales results from both the enterprise and consumer segments.Lenovo's sales were buoyed by demand from its home maket in China ahead of Lunar New Year.For Dell, changes to its product development and sales strategies affected its results negatively, Digitimes Research believes.The top-3 ODMs also registered a 32% drop in shipments in Januart. But Inventec saw an increase in orders for consumer models from HP.The coronavirus outbreak is expected hit hard ODM notebook production in the first quarter, according to Digitimes Research's latest quarterly notebook tracker report. Top-5 notebook vendors' shipments, Januay 2019-Januay 2020 (k units)Source: Digitimes Research, February 2020

Appier, a startup developing AI-based solutions for precision marketing, has been recognized by Taiwan's National Development Fund as one of the two initial Taiwan-based unicorns.Appier raised venture capital of US$80 million in series-D round of funding in November 2019, taking its cumulative funds to over US$162 million.Appier in October 2019 fully acquired Japan-based AI startup Emotion Intelligence (Emin), and has since integrated Emin's AI solution with its own technology into AiDeal, an AI-based solution that enables e-commerce operators to analyze online shoppers' browsing behavior to predict their purchasing intentions and then provide timely electronic coupons and/or discount information specifically for hesitating customers to promote sales, said Appier co-founder and CEO Yu Chih-han.Since its inception in 2012, Appier has developed CrossX, a cross-device online advertising platform, and Aixon, a data science platform to help users predict customer behavior. Skin car product vendor Neogene, for example, found that consumers were interested in ocean friendly topics via Aixon and thus launched sunscreen products free of polluting chemical ingredients to reduce detriment to coral in 2019.Appier in August 2018 acquired India-based startup QGraph and then developed Aiqua, a proactive customer engagement platform to help users identify potential customers and push online personalized advertising.Simply speaking, Appier's mission is to help clients attract new customers, understand customers and retain them, Yu indicated.For application of AI to marketing, many enterprises with abundant data inside have a common problem: It is difficult to integrate fragmented data, said Appier co-founder and COO Winnie Lee, adding that integration of fragmented data is crucial to profiling customers' behavior to make precision marketing decisions.To save enterprises' cost for setting up AI teams, the AI modeling built in Aixon allows enterprises' marketing staff members without professional AI knowledge to use AI to solve problems, Lee noted. As many small- to medium-size enterprises, especially those in traditional industries, know little about handling data, Aiqua is a relatively easy AI tool for them, Lee indicated.To benefit the most from adopting AI-based solutions, enterprises have to set clear operational goals, have sufficient internal data and well define problems to be solved, Lee explained.With AI as core technology, Appier's success is attributable to the concept of making AI easy through developing common AI platforms applicable to various industries, Appier chief data scientist Lin Hsuan-tien said.Appier co-founders (from left): COO Winnie Lee, CEO Yu Chih-han, and CTO Joe SuPhoto: Michael Lee, Digitimes, February 2020