Huawei's smartphone business is likely to continue to be affected by the US trade ban in 2020 and beyond, and the performance of global shipments of 5G phones and foldable devices will vary in 2020, according to Digitimes Research.Huawei's de-Americanization campaign to mitigate the impact of the US trade ban has made some progress in terms of use of RF components for its smartphones, but the vendor still relies heavily on US-based vendors for the supply of key optical components such as VCSEL devices.Huawei has also apparently failed to reach self-sufficiency as far as Google's GMS (Google Mobile Service), ARM's CPU architecture and supplies of EDA (electronic design automation) tools are concerned.Huawei will continue to suffer from the adverse impacts or see its competitiveness further weaken in 2020 and beyond if the US trade ban continues to deny its access to Google's GMS service, ARM's CPU IP products and other EDA tools, or if it tries to force its de-Americanization efforts beyond reasonable means, Digitimes Research believes.Digitimes Research has revised upward its estimation of global 5G phone shipments for 2019 due to the ramp-ups in shipments by Chinese handset makers since October 2019. Global 5G phones are estimated to reach 21 million units in 2019, including 12.5-13.5 million units shipped to the China market, and are likely to expand to over 248 million units in 2020.Global shipments of foldable smartphones are estimated to total 400,000-600,000 units in 2019 and are expected to grow slowly to 2-3 million units in 2020 due to higher prices and lack of innovative applications of these models, Digitimes Research estimates.

The world has been as curious as ever about Apple's upcoming lineup of iPhone for 2020, and the latest news coming from the supply chain claims that the vendor may launch as many as six iPhone models this year, and that it will continue to keep LCD screens for two of them. And for the new 5G iPhones, TSMC is said to be processing antenna modules for them using its InFO_AiP technology. In the memory market, major NAND flash chipmakers are ready raise their quotes to reflect ever-increasing demand for a wide range of applications. NAND flash contract prices may soar as much as 40% in 2020.Apple may launch six iPhone devices in 2020, say sources: Apple is likely to launch as many as six iPhone devices in 2020, including four OLED models and two LCD ones, according to sources at Taiwan's handset supply chain.TSMC reportedly lands InFO_AiP orders for 5G mmWave iPnones: As US leading chipmakers and system vendors are gearing up to commercialize their mmWave technologies, TSMC reportedly has landed a big order from Apple for processing handset antenna modules with its InFO_AiP (antenna in package) technology, and it remains to be seen as to how far the move may impact Taiwan's suppliers of IC substrates, according to industry sources.NAND flash prices to rise by up to 40% in 2020: NAND flash contract prices are forecast to rise by up to 40% in 2020, according to sources at memory chipmakers.

While the number of lower-power wide-area networks (LPWAN) in commercial operations and the number of connected devices of these networks both expanded exponentially in 2019, NB-IoT networks ended the year to account for 70% of these LPWA networks, with its connected devices six times those situated on eMTC (enhanced Machine Type Communication or LTE-M)-based networks, Digitimes Research has found.There were a total of 114 operators in 57 countries worldwide offering commercial LPWAN services as of September 2019, showing a significant growth from a year earlier, according to GSA (Global mobile Supplier Association).The availability of LPWA chips and modules that are fully compliant with the 3GPP Release 14 standards, and the subsidies offered by China's telecom operators to LPWA module makers, were the crucial factors driving the fast expansion of commercial LPWA networks in 2019, said Digitimes Research.However, the fact that over 85% of connected devices globally are controlled by the world's top-10 LPWAN operators indicates that the size of the domestic market is a key factor in determining the scale of the IoT market. As a result, due to a lack of economies of scale in some countries, the promotion of IoT applications globally may not reach satisfactory leves in the short to medium term.Meanwhile, factors including high initial investments for the build-ups of LPWA networks, slower returns on equity, and the fact that IoT revenues currently account for less than 3% of their overall mobile service business, have impeded the world's major LPWA network operators to expand significantly their LPWAN services, or have even slowed down related investments.

Taiwan startup NADI System, dedicated to smart city solutions, has penetrated its 3D visualization management solutions into Southeast Asia by joining the Taipei Smart City@AMATA project now undertaken in Thailand by Taiwan's Sinotech Engineering Consultants, according to the firm's overseas representative CC Wu.Wu said NADI's 3D visualization management platform will be used to integrate the operations and maintenance of every buildings in a pilot smart city complex to be built in Amata City Chonburi Industrial Estate in Thailand.Wu continued that his company can leverage its 3D visualization technology to integrate BIM (building information modeling) and CIM (city information modeling), analyze traffic and human flows, and optimize the deployments of smart streetlights, surveillance systems and fire-fighting systems in the pilot complex.Wu disclosed that NADI will also incorporate its 3D visualization management solutions into the plants operated in Thailand by Cal-Comp Electronics & Communications, in cooperation with Cal-Comp Automation & Industrial 4.0 Service.

The output value of China's IC design industry is forecast to rise 22.5% on year to top CNY300 billion (US$43.06 billion) in 2019, according to Digitimes Research.Government subsidies have encouraged more homegrown chips development. The number of China-based fabless chipmakers has been growing rapidly, while their capability of developing chips is also being enhanced.China's IC design sector has enjoyed over 20% in output value annually since 2015. In 2019, there were already more than 1,700 China-based IC design houses while China's National Integrated Circuit Industry Investment Fund's (Big Fund) first-phase capital support was bearing fruit.The Big Fund is expected to spend more on its second-phase capital support for the local chip industry, Digitimes Research believes. The government-led fund was set up in 2014 aiming to nurture China's local IC industry and raise the country's self-sufficiency for ICs.Among all segments of China's IC design sector, communication ICs will generate more than CNY100 billion in output value this year making the largest contribution to the overall industry output.

Taiwan-based startup KaiKuTek has developed a system-on-chip (SoC) solution that combines mmWave radar technologies, antennas and AI accelerators to realize close-distance fine gesture recognition.The advent of the 5G and AIoT eras promises huge opportunities for applications of millimeter wave (mmWave) technologies. Especially when Google's Pixel 4 smartphone allows users to skip a song, snooze an alarm or mute a call with a simple wave over the phone, gesture-based human machine interaction is catching market attention again. However, it remains quite challenging for mmWave technologies to be used for gesture recognition while achieving low energy consumption, low latency and low cost.KaiKuTek, founded by Mike Wang with funding from JMicron Technology in 2017, has developed a solution that it says has matured to commercialization ahead of international technology heavyweights.KaiKuTek has been chosen by the Ministry of Science and Technology (MOST) to be among 80 startup teams that will present their achievements at the Taiwan Tech Arena (TTA) at CES 2020. It will showcase what it calls the world's first 3D gesture recognition SoC based on 60GHz mmWave radar technology.A useful solution made by a combination of technologiesWang founded the company at a time when he had little connection in the Taiwan high-tech business but only expertise in RF and wireless communication technologies."I had never worked for a Taiwanese employer before I started KaiKuTek. All my research partners were working in the US at the time," said Wang.Although starting his own business for the first time, Wang had helped build two startups when he was in the US. He helped start a company that provided RF CMOS solutions in 1999 when the Bluetooth technology was emerging. The company was later sold for US$150 million. The second startup that Wang helped establish offered indoor data transmission solutions for Multimedia over Coax Alliance (MOCA) set-top boxes. It later went public in the US, worth US$800 million at its peak.According to Wang, KaiKuTek is not smarter than others but just integrates related technologies and leverages all their benefits to create a useful solution. Wang said he had been researching on 60GHz mmWave radar technologies in the US, but it was not until he saw Google's Project Soli three years ago that he thought it might be interesting to combine radar sensors with AI.CMOS-based solutionWang highlighted KaiKuTek's three major advantages. The first is its innovative mmWave circuit design, which puts up a high barrier. Latecomers will have to spend tremendous time and money to be able to catch up with KaiKuTek, he said. Second, leveraging hardware capability and software algorithm, KaiKuTek's AI algorithm achieves higher power efficiency, shorter response time and optimal energy efficiency. Third, KaiKuTek has robust technologies and capabilities in antenna design.Despite the high bandwidth, the problem with 60GHz signals is that they do not travel far and attenuate quickly in the air. KaiKuTek is able to use this to its advantage. By using the radar only for close-range detection along with the use of directional antennas to avoid interferences from adjacent devices and increase recognition precision, KaiKuTek's solution can detect subtle finger movements. Not only does KaiKuTek make use of edge computing but it has actually implemented computing on the dedicated AI processing unit embedded in the SoC, realizing computing on the sensor and saving smartphone power consumption.As opposed to other mmWave radar ICs on the market that are manufactured on the expensive gallium arsenide (GaAs) process or use camera-based solutions, KaiKuTek's chip is made using the more mature and affordable CMOS process. Integrating 1T3R antennas, MMICs and its proprietary AI accelerator in an advanced antenna in package (AiP) SoC, KaiKuTek's solution enables multiple benefits including fast response, energy efficiency and low cost.In terms of applications, Wang is optimistic about market opportunities arising from the use of gesture recognition in home appliances enabled by AIoT developments. However, KaiKuTek will focus efforts on smartphones, wearable devices and gaming markets for the time being.KaiKuTek has been putting its test chips in action at major exhibitions with an aim to provide users a new and alternative human machine interaction experience. KaiKuTek marketing director Griffon Lin noted the demonstrations now use test chips with the purpose to gain an insight into market reaction and then KaiKuTek can make adjustments to better suit user needs. Volume production for the first-generation product is scheduled for second-quarter 2020.Gesture recognition has its advantages but it is not aimed to replace touch control. Wang thinks it can be a complementary addition to human machine interface (HMI) designs. The HMI market is big enough for different solutions to thrive, he added.KaiKuTek founder Mike Wang

Passive components suppliers and clients have kept their inveotory levels low in 2019 amid US-China tradce tensions. But now inventory is running low and they are starting to rebuild their passive components stocks with confidence boosted by a better outlook for 5G-driven demand in 2020. The US-China trade tensions may be easing, but uncertainty is still lying ahead, prompting manufacturers to continue their relocation out of China. Meanwhile, aspiring Taiwanese startups are ready to showcase their innovations at the upcoming CES 2020. Taiwan is sending a delegation formed by 80 startups to present their products and ideas at the Taiwan Tech Arena at the annual show in Las Vegas, including Taiwan RedEye Biomedical's home-based health-monitoring optical hemoglobin sensor that can provide insights into people's health in just 10 seconds.Passive components inventory levels running low: Inventory levels in the passive components sector are running low, with clients now starting to replenish their stocks, promising tight supply of capacitors, resistors and inductors, according to industry sources.Supply chain continues moving out of China despite trade truce: The US-China trade tensions seem to be easing with both sides set to sign an agreement soon, but there is still so much uncertainty lying ahead that many IT supply chain players have no choice but continue their manufacturing relocation out of China, according to industry sources.RedEye to showcase optical hemoglobin sensor at CES: Taiwan RedEye Biomedical will present at the upcoming CES 2020 its home-based health-monitoring optical hemoglobin sensor that can provide insights into people's health in just 10 seconds, according to the company.

China's expenditure for semiconductor equipment is expected to grow by a double-digit rate in 2020 as the willingness for expanding capacity by its makers in the IC manufacturing industry is expected to rise in light with a rebound in demand for end-market devices and the roll-outs of new 5G applications.Expenditure for semiconductor equipment in China is estimated to have reached US$12.9 billion in 2019 and will expand to US$14.9 billion in 2020, accounting nearly 25% of global expenditure in the sector and enabling China to maintain its status being the world's second largest semiconductor equipment market in the year, SEMI estimates.For the period from 2016-2020, the expenditure for semiconductor equipment in China is to grow by a CAGR of 23%, significantly higher than the industry's average, SEMI data shows.In addition to demand for capacity ramps by IC manufacturing and backend service companies, growing support from China's National Integrated Circuit Industry Investment Fund (Big Fund) and tax incentives for imports of semiconductor equipment will also be the impetus for pushing spending on semiconductor equipment in 2020, Digitimes Research believes.China's ongoing de-Americanization campaign to cut reliance on the US supplies of crucial semiconductor components and technologies, might benefit non-US and local suppliers of semiconductor equipment, but it depends on whether the homegrown semiconductor equipment suppliers in China have sufficient competitiveness.

Paking Technology has developed a smart parking solution that has been adopted by parking lots in three cities in Taiwan and in Hong Kong, and is poised to tap markets in Southeast Asia, with Thailand being the first one, according to company founder and CEO David Lin.The smart parking solution has been adopted in Hong Kong by Mira Place shopping mall, an office building and a 5-star hotel, Lin said, adding it is in trial use at Singapore's Changi Airport.Paking is also eyeing Bangkok, which ranks fifth among cities around the world in terms of difficulty in parking, said Lin. Paking has undertaken market surveys for nearly two years there in preparation for proving the smart parking solution, Lin indicated. The company's namesake app, Paking, integrates IoT technology and cloud-based data management to enable users to reserve indoor parking spaces in advance, and when they arrive will guide them to the reserved spaces via voice- and vision-based navigation, Lin said, adding the app allows drivers to make mobile payment when they leave, Lin said.Drivers spend 7.1 minutes on average to look for outdoor or indoor parking spaces near their working places in cities in Taiwan, and the average time is 9.5 minutes in Greater Taipei, Lin cited government statistics as indicating.

Whoopee Robot Technology has showcased a robotic arm for making coffee at AppWorks Demo Day#19, a semiannual event to match 18 startup teams with venture capital investors and enterprise partners hosted by AppWorks Accelerator, according to Whoopee co-founder Morris Lu.The robotic arm, targeted for use in delivering food and beverage, is equipped with an AI-based brain to learn human instructions and perform designated tasks, Lu said. Users without engineering background can simply use cloud computing-based operational software to set the robotic arm to meet their needs, Lu said.Whoopee has cooperated with the three largest distributors of coffee machines in Taiwan for marketing the robotic arm and plans to use it at unstaffed coffee shops in Bangkok, Thailand, Lu noted.The Whoopee team led by co-founder Morris Lu (right) Photo: AppWorks Accelerator