Samsung Display's decision to terminate production of LCD panels at its plants in Korea and China before year-end 2020 is positive for demand and supply of large-size panels in 2021, and the move will also benefit rivals including China Star Optoelectronics Technology (CSOT), BOE Technology, Sakai Display Products (SDP) and AU Optronics (AUO), according to Digitimes Research.It is no surprise to the display industry that Samsung Display will opt to withdraw from the LCD panel sector as its LCD business was losing money in every quarter of 2019 due to challenges from Chinese competitors' aggressive capacity ramp.LCD panel prices did stage a rally in early 2020 but the upswing was capped in March by the coronavirus pandemic, which has also undermined consumer demand for TVs, pushing Samsung Display to accelerate its exit from the LCD panel sector.Samsung Display had 14.4% of the world's large-size LCD panel production capacity in 2019, including 11.1% in Korea and 3.3% in China.The Korean panel maker is currently operating an 8.5G line in Suzhou, China, and the company is likely to sell it to China-based companies, such as CSOT, which would narrow its capacity gap to rival company BOE if it acquired the plant.Digitimes Research believes that CSOT, BOE and SDP (including Sakai SIO International Guangzhou) will benefit from Samsung Display's exit as these three firms all boast 10G or above LCD lines.AUO has maintained long-term business relationships with Samsung Display in TV panel segment though the two firms are competing each other for panel orders from the gaming monitor segment. AUO stands a good chance of ramping up gaming monitor panel shipments once Samsung Display stops producing LCD panels.

The impacts of the coronavirus pandemic on the globaal smartphone market have prompted TSMC to revise dowanrd its growth outlook for 2020, but it expects to still outperform the global semiconductor and foundry averages. The foundry also has maintained that its 3nm process development remains on track, with risk production to start next year. Despite the grim outlook for the smartphone market, Apple's freshly-launched second-generation iPhone SE is expected to give a boost to its asssembler, Pegatron.TSMC cuts market outlook for 2020: TSMC has revised downward its global semiconductor market outlook this year to flat growth or a slight decrease, compared to the 8% increase estimated in January. The outlook excludes the memory chip sector.TSMC 3nm process development remains on track: TSMC has disclosed that its 3nm technology development remains on track, with risk production scheduled for 2021 followed by volume production in the second half of 2022.Pegatron 2Q20 revenues to be boosted by new iPhone SE: With Apple's new iPhone SE set to hit the store shelves soon, the smartphone's major maker Pegatron is expected to see its second-quarter revenues climb substantially, according to industry sources.

TSMC has reported impressive results for first-quarter 2020 despite the coronavirus outbreak, with sales growing 42% on year to NT$310.6 billion (US$10.33 billion) and net profit soaring 90.6% on year to NT$116.99 billion. TSMC expects it second-quarter 2020 sales to remain flat compared to the previous quarter. The outbreak may have stalled China's economy, but did not prevent it from becoming the world's largest 5G smartphone market in first-quarter 2020. The pandemic also shored up demand for notebooks to support stay-at-home needs, but notebook ODMs are wary that their shipments may fall in May after impressive increases in April.TSMC expects flat 2Q20: TSMC expects to post revenues of between US$10.1 billion and US$10.4 billion in the second quarter of 2020, flat from its sales in the first quarter.China 5G smartphone shipments top over 10 million units in 1Q20: Shipments of 5G smartphones in the China market reached 14.06 million units in the first quarter of 2020, making it the world's largest 5G phone market, according to data compiled by China Academy of Information and Communications Technology (CAICT).Notebook ODMs to see shipments fall in May: Taiwan-based notebook ODMs are expected to see their shipments surge 20% sequentially in April, but fall back to the March levels in May, according to sources at fabless chipmakers.

Mature manufacturing processes at TSMC have seen utilization rates drop amid chilled demand for automotive and consumer electronics applications in the wake of the coronavirus pandemic, but clients remain keen to secure support from the foundry's advanced nodes. IT firms are also keen to obtain sufficient components to fulfill demand triggered by a surge in stay-at-home needs, with chip resistors seeing particularly tight supply. Despite an influx of short-lead time orders - also thanks to stay-at-home needs - a sense of uncertainty is still looming for memory module makers.TSMC sees 28nm process capacity utilization drop: TSMC has seen 28nm as well as 40/45nm process capacity utilization rates drop, due to a slump in chip demand for automotive and consumer electronics devices, according to sources at fab toolmakers.Chip resistors see tightest supply with BB ratio hitting 1.8: Chip resistors are seeing the tightest supply among passive components with book-to-bill ratios at suppliers rising to 1.8, higher than 1.5 for MLCCs, and major makers Yageo, Walsin Technology, Ta-I Technology and Ralec are all gearing up production to meet urgent demand from server, notebook, PC and industrial control segments amid the coronavirus pandemic, according to industry sources.Memory module makers uncertain about 2Q20 prospects: Memory module makers have become increasingly uncertain about their outlook for the second quarter despite an influx of short lead-time orders for PCs, and continued strong demand for data centers and other related applications, according to industry sources.

The Taiwanese government is stepping up efforts to help local startups hit by the coronavirus pandemic, including financial assistance.The National Development Council (NDC) has announced it will purchase preferred stocks from Taiwan's startups until October 5, while the Ministry of Science and Technology (MOST) will help them plan their participation at global startup exhibitions to connect them with international capital after the pandemic is put under control.NDC minister Mei-ling Chen pointed out many startups have already conveyed to the government their financial difficulties arising from the outbreak soon after the Lunar New Year holidays in late January and the situation is growing worse with the pandemic spreading fast.Some market observers have pointed out that global investments in startups had already weakened before the holiday period. WeWork, a commercial real estate company that provides shared workspaces and supported by Softbank Group and JPMorgan Chase, called off its IPO scheduled in September 2019, a sign of a downturn for the international investments in entrepreneurship.Research firms also have also noted that Asia only had 23 startups with market values of over US$1 billion in 2019, a sharp drop from 2018's 42.Research firm CB Insights' figures also show that the global startup investment market had a value of around US$77 billion in the first quarter of 2020, down over 12% on year, while Asia had the sharpest drop of nearly 35%.Taiwan's MOST helps bridge startups with international capitalPhoto: Digitimes file photo

China-based Kymco Private Equity Management (Kymco Capital), a managing company for private equity investment funds and privately offered funds, focuses investment in enterprises in the ecosystem of providing mobility services, according to company general manager and managing partner Gary Ding.The ecosystem consists of six areas: Development and production of electric vehicles (EVs); EV batteries; B2B IoV; B2C mobility services derived from B2B IoV; information and communication technology (ICT); and social networking, Ding said.Viewing that DiDi Chuxing's app-based car sharing services and bicycle sharing services operated by Mobike and Ofo changed mobility patterns in China, Kymco was motivated to focus investment on busineses operation closely related to mobility services, believing such operators could become unicorns, Ding said.For electric scooters, Taiwan-based motorcycle maker Kwang Yang Motor (brand name Kymco) is a main shareholder of Kymco Capital and Kwang Yang chairman Allen Ko is also the chairman of the latter, Ding noted.In the area of B2B IoV, Kymco Capital plans to cooperate with operators of delivery services such as for ordered food and integrate real-time road conditions with digital maps to hike their operational efficiency, Ding indicated. For B2C mobility services, retail stores and restaurants will be target participants, Ding said.Kymco Capital regards ICT as a key tool for upgrading mobility services and plans to focus on AI and big data analysis, Ding noted. Social networking is in response to development of B2B IoV and B2C mobility services, Ding added.In the six areas, some enterprise are or will be investors through providing equity capital for Kymco Capital while others are or will be targets of Kymco Capital' investment, and Kymco Capital hopes to play a role of bridge to help them find operating resources, solutions and experimental sites, Ding indicated.Kymco Capital general manager and managing partner Gary DingPhoto: Shihmin Fu, Digitimes, April 2020

Both SMIC and HiSilicon play major roles in China's campaign to raise the country's IC self-sufficiency though TMSC has been the major foundry partner for Huawei's chipmaking arm. Now HiSilicon is giving its 14nm chip orders to SMIC, an indication of the Chinese foundry's improved competitiveness. But the Chinese chip vendor still relies heavily on Taiwan's semiconductor ecosystem for advanced processes, as it gives more emphasis on 5nm chips for 5G base stations amid weak demand for handset applications. Handset PCB suppliers have also reported low visibility beyond May.HiSilicon places 14nm chip orders with SMIC: China's Semiconductor Manufacturing International (SMIC) with its 14nm FinFET process manufacturing has obtained orders from HiSilicon, according to industry sources.HiSilicon to ramp up 5nm chip orders with backend houses in 3Q20: Taiwan-based backend houses including King Yuan Electronics (KYEC) will see orders for HiSilicon's 5nm chips for 5G base stations ramp up substantially in the third quarter of 2020 as Huawei's chipmaking arm may adjust its product portfolios for 5nm chips to cover more infrastructure applications, according to industry sources.Handset PCB firms see limited order visibility beyond May: Handset PCB specialists' order visibility has extended only to May, and are still unsure about their overall sales results for second-quarter 2020 as orders for June are yet to be finalized, according to industry sources.

The coronavirus pandemic is hitting the hard the smartphone market, with components suppliers disclosing that orders from Huawei and Samsing for their high-end 5G devices have been weak. But chip vendors believe that demand for 5G smartphone solutions is recovering in China, and they are stepping up production for sub-6GHz offerings that will be the mainstream in 2020. For Apple, which may launch its 5G iPhone later than expected due to the impacts of the virus, its partners, TSMC and ASE Technology, reportedly are still ready for backend mass production as originally scheduled for the 5G iPhone's mmWave AiP modules.Sales of Huawei, Samsung high-end smartphones stalled by pandemic: Shipments of 5G-enabled smartphone models from Huawei and Samsung Electronics reportedly have met with headwinds, with supply chain sources indicating that component orders for these high-end models have lost momentum in the wake of the coronaviurs pandemic.5G smartphone chip demand recovering in China: With the coronavirus outbreak put under control in China, China's domestic 5G smartphone market has started recovering with chipmakers stepping up production for sub-6GHz solutions, according to industry sources.5G iPhone mmWave AiP production schedule hinges on Apple strategy: Apple's assembly partners reportedly may defer volume production of 5G iPhones by at least one month amid high uncertainty of the coronavirus pandemic, but its mmWave AiP modules backend partners including TSMC and ASE Technology are still ready for mass production as originally scheduled, according to industry sources.

Demand for server applications has been strong, fueled by stay-at-home economy amid lockdowns in response to the coronavirus pandemic. But the lockdowns may disrupt suppliers' production in Southeast Asia, creating shortages for server components. For memory suppliers, they are prioritizing shipments to the datacenter sector to support expanding stay-at-home economy, which is also propelling demand for server memory backend services that PTI offers. Notebook ODMs also saw staggering on-month sales growth in March, driven by users' needs to work and study from home.Concerns about server component shortages emerge: With a number of Southeast Asian countries imposing various levels of coronavirus lockdowns, concerns have been rising about component shortages that may hit the server industry supply chain, according to industry sources.Memory vendors give priority to orders for data centers: Samsung Electronics, SK Hynix and Micron Technology now give priority to shipping memory chips and devices for data centers and other server applications, as demand for smartphones is slowing down, according to industry sources.PTI 1Q20 revenues spike 30% on robust server memory demand: Memory backend specialist Powertech Technology (PTI) saw first-quarter 2020 consolidated revenues surge 30.35% on year to hit the firm's second-highest quarterly level at NT$18.81 billion (US$625.6 million), buoyed by strong demand for datacenter storage and other server applications, according to company sources.Compal, Inventec, Acer see staggering on-month revenue growths in March: Taiwan-based notebook ODMs enjoyed increased revenues in March thanks to rising orders from clients, while brand vendor Acer also achieved strong revenue growth in the month.

Apart from its leadership in the foundry sector, TSMC has been making a lot of efforts developing packaging technologies with which it can offer value-added services to customers. It has recently seen an "unexpected" rise in orders demanding its CoWoS packaging services for chips that support stay-at-home needs triggered by widespread lockdowns in the wake of the coronavirus pandemic. The lockdowns have also propelled demand for notebooks that users need for working and learning from home. ODMs expect significant notebook shipment growth in second-quarter 2020. The pandemic has also sent demand soaring for healthcare and disinfection applications and devices. Many LED makers are now running at full capacity to meet strong demand for UV-C products.TSMC sees CoWoS packaging capacity utilization ramp up: TSMC has seen utilization of its chip-on-wafer-on-substrate (CoWoS) packaging capacity rise substantially in the second quarter of 2020, and now runs the packaging production lines at full utilization, according to industry sources.ODMs to see notebook shipments grow in 2Q20, but desktops may drop: With rapidly rising demand for notebooks, Taiwan-based ODMs have primarily focused their capacities on producing notebooks and are expected to enjoy double-digit sequential growths in second-quarter notebook shipments, but shipments of desktops and all-in-one (AIO) PCs may slip sequentially.UV-C LED devices in tight supply: Demand for UV-C LED products for disinfection applications has drastically increased in the wake of the coronavirus pandemic, stretching the production lead times at makers of such devices, according to industry sources.