E-commerce operator Yahoo! Kimo has converted two conventional warehouses in northern Taiwan into an automated logistics center for delivering online purchased merchandise items.For the center's establishment, iAmech supplied automated logistics equipment, government-sponsored Industrial Technology Research Institute (ITRI) provided AI-based automation software, and HCT Logistics undertook hardware/software integration, Yahoo! Kimo said.In order to maximize efficiency in using storage space units, decision on receiving merchandise items from suppliers and the corresponding volumes is based on online orders and thereby dynamically adjusted, Yahoo ! Kimo noted. The decision includes consideration of seasonal changes, peak demand in festivals or on holidays and predicted demand based on historical data, Yahoo ! Kimo indicated.As locations of storing merchandise items influence efficiency in sorting and delivering merchandise items, AI-based high-density dynamic storing and picking technology is adopted for automatically distributing storage space units, Yahoo ! Kimo said. In principle, storage space units for correlated merchandise items, such as matched cosmetic products, are in the same places to minimize frequency of and time taken in storing and picking, Yahoo ! Kimo noted. The AI-based technology regularly adjusts locations of storage space units based on daily deliveries and recent sales conditions, with more frequently stored and picked merchandise items placed at more accessible locations, Yahoo ! Kimo indicated.Compared with the original two warehouses, the automated logistics operation has increased warehousing capacity by 50% and SKU (store keeping unit) by 250%, and decreased average storage time at the center by 60%, Yahoo ! Kimo said, adding the time from purchasers' placing orders to beginning deliveries has been shortened from 20-30 minutes originally to 10 minutes.With an automation level of 80%, labor input at the center has decreased by 30%, Yahoo ! Kimo said, adding labor is mainly used in receiving shipments, packaging and handling merchandise items, while a CAPS (computer-assisted picking system) is used to reduce human errors in the picking process.Yahoo! Kimo's automated logistics centerPhoto: Shihmin Fu, Digitimes, November 2019

The US-China trade war may be hurting the economy of both countries, but as far as the server industry is concerned, the impact on the Chinese market seems greater than that on the US. It may take a few more months before China's server market recovers. For Mitac Group, a major Taiwan-based server ODM, it still expects significant gropwth next year. In the wearable market segment, TWS headset demand is picking up, partly fueled by the recent l;aunch of Apple's AirPod Pro. But major chip vendors' eagerness to carve out slices of the market has brought down TWS chip prices.Trade war affecting datacenter market in China: The ongoing trade disputes between the US and China continue to affect negatively China's datacenter market, with recovery unlikely to take place until the end of 2019 or even 2020, according to sources at server and related device makers.Mitac to push into cloud computing in 2020: The Mitac Group will see three major growth drivers - edge computing, large-scale datacenters and Internet of Vehicles - in 2020 with subsidiaries Mitac Computing Technology and Mitac Digital Technology to be responsible for these business opportunities, according to group president Billy Ho.TWS earbud chip prices fall below US$1.50: Unit prices for SoC chips used in true wireless stereo (TWS) earbuds have fallen below US$1.50 recently, down from US$2.50-3 in the first quarter of 2019, amid growing presence of major chipset vendors in the maket segment, according to industry sources.

Taiwan startup FruitPay offers a weekly fresh fruit subscription service aiming to help consumer address the inconvenience, bad quality and high price issues when buying fruits, according to company Darren Chang, founder and CEO.Chang said through the subscription service, consumers can enjoy regular supply of a variety of fresh fruits they need, as the company can have fruit farmers deliver their products to its warehouse from where the fruits are distributed to customers based on their subscriptions. The company has contracted logistics startup Lalamove as its third-party distribution service provider.Chang stressed that the subscription service can help fruit farmers sharply lower inventory volumes and costs, and can also help his company build a buffer pool for buying and selling fruits.FruitPay has registered more than 2,000 users and partnered with over 500 farmers able to offer traceable certificates for their fruit products. It has delivered over 60,000 boxes of fruit since the service was launched in 2015. Most of its users are mothers and professionals, which together contribute 40-50% of the firm's revenues, according to Chang.FruitPay CEO Darren ChangPhoto: Yihan Li, Digitimes, November 2019

The #AsiaRocks, the first and only Asia-focused startup event, will open on November 13 for a three-day run in Taipei, aiming to help local and overseas startups expand their businesses in the Asia Pacific region and strengthen ties between regional startup ecosystems, according to event organizer Taiwan Startup Stadium (TSS).Through exhibitions, keynote speeches, panel discussions and networking meetings, the event will provide access to key players and resources from Asian markets as well as opportunities to tap deep into different startup ecosystems and learn more about investment trends, government subsidy programs and soft-landing services of participating countries, TSS said.Among exhibitors and speakers are: Taiwan Tech Arena, Startup Terrace, AppWorks and DIT Startup, all from Taiwan; Hong Kong Polytechnic University, Hong Kong Science and Technology Parks, Hong Kong Cyberport; Invest Tokyo, ProtoStar, Fukuoka Growth Next all from Japan; Seoul Startup Hub from Korea; SEA Bridge from Indonesia; Startup Bootcamp from Australia; Zino Innovation Hub and New Zealand; and National Innovation Agency & Startup Thailand.TSS CEO Leroy Yau said the startup scene in Asia is young compared to that in Silicon Valley, but it is booming and has produced over one third of the world's 331 unicorns as of April 2019. The government in Taiwan has pledged to boost its startup scene by providing tax credits and relaxing regulations to facilitate introduction of foreign talent and funding resources seeking to create its first unicorn.

Trade tensions between the US and China seem to be easing a little, but it remains uncertain whether the more "friendly" atmosphere will be subsequently followed by a full truce between the two super economies. For notebook vendors who risk higher tariffs for Chinese imports if the trade war doesn't end, they are still having their manufacturing partners moving production lines out of China although they have yet to fully commit orders to the relocated plants. In the display industry, which has been plagued by oversupply, Chinese makers are shifting more of their capacity to producing IT panels, seeking to stem losses from the competitive large-size TV maket segment.Notebook ODMs see vendors slow down orders on trade war easing: US notebook vendors have slowed down placing orders with Taiwan ODMs amid seemingly easing of US-China trade tensions, but have not asked the manufacturers partners to stop moving production lines out of China, according to industry sources.China display makers shifting more capacities for IT panels: Some China-based flat panel makers are shifting more of their production capacities to the manufacture of IT applications as they seek to stem losses resulting from keen price competition in the large-size TV panel segment, according to industry sources.

Taiwan-based startup InnoVart Design has developed a digital communication device, CarWink, allowing drivers to communicate with other drivers and vehicles behind them using texts and animations, according to company founder and CEO WC Chou.Chou said CarWink is a solar-powered, voice-control and portable vehicle-connection solution integrating software, hardware and app, and users can use a distinct emoji feature of the device to alert drivers following them to any incidents ahead.Drivers can hang the circular, digital display on their rear windshield and use voice prompts to display its pre-set animations or messages. For example, if a car is honked at by a following car when stopping to let a pedestrian cross, the driver can say "CarWink, pedestrian crossing" and then the device will display an image of a figure crossing a road followed by a text reading "ped xing," according to Chen.CarWink can help reduce disputes among drivers and facilitate traffic flow, Chou stressed, adding his company has just completed the first-batch volume production of the device for shipments to the US and Japan.InnoVart Design's CarWinkPhoto: Yihan Li, Digitime, November 2019

The production value of South Korea's memory chip industry increased 5.5% sequentially to KRW19.8 trillion (US$17.06 billion) in the third quarter of 2019, according to Digitimes Research.Samsung saw its memory revenues register a sequential increase for the second consecutive quarter in the third quarter, while SK Hynix' stopped falling. The pair also had their operating margins fall at a slower pace in the third quarter than previous quarters.Samsung and SK Hynix have both managed to lower their inventory to appropriate levels indicating the global memory market is poised for a rebound in the first half of 2020, Digitimes Research indicated, Digitimes Research believes.Memory demand for 5G-capable smartphones and other related devices is set to boom next year. Samsung and SK Hynix are both expected to enjoy a rebound in their chip ASPs starting the first half of 2020.

There has been much hype about the arrival of the 5G era, but 4G is still very much alive and kicking. Global smartphone sales have slowed down in 2019, but Taiwanese IC designers have seen demand for 4G smartphone chips rebound in the fourth quarter of the year. At any rate, 5G smartphone demand will shoot up exponentially in 2020, during which more foldable handsets are expected to be made available. Taiwanese firm TPK has disclosed that its nanowire touch solutions has already entered design-in processes of 1-2 foldable phones. For the display industry, the year 2020 does not seem a promising year with fears of panel oversupply lingering. It may have to wait a bit longer before seeing TV panel prices rebound in the second quarter of 2020. But chances are high such a price recovery will be short-lived.Chip demand for 4G smartphones picking up: A decline in chip demand for 4G smartphones seems to have bottomed out, according to industry sources in Taiwan.TPK wins deals for silver nanowire touch solutions: TPK Holding's small-size silver nanowire-based touch solutions have entered design-in processes of 1-2 foldable handsets, according to Leo Hsieh, president of the touch module and sensor maker.TV panel prices likely to rebound in 2Q20: TV panel prices are expected to remain steady in the first quarter of 2020 before staging a possible rebound in the second quarter, as they have become stabilized recently thanks to massive production cuts by makers to prevent pricing falling further, according to industry observers.

Following several months of aggressive inventory build-up in the wake of the US trade ban, Huawei has slowed down the pace of orders for Taiwanese chip suppliers in the fourth quarter, as it conducts year-end stock-taking. But Huawei's order momentum is expected to resume in first-quarter 2020. The US ban apparently has not dampened the Chinese vendor's ambition to dethrone Samsung and ascend the pinnacle of the global handset market. The armwrestling between the two vendors is not just about shipment numbers; they showcased their technological prowess by unveiling their respective trendsetting foldable phones earlier this year. Now hinge makers are eyeing opportunities from foldable phones, but they still have to tackle problems with the complicated hinge design of foldable phones. But in the meantime, Samsung needs to fix the security issues of its phones' facial recognition functions. The Korean giant reportedly is mulling adopting ToF 3D sensing solutions for its Galaxy Note 11 to be launched in second-half 2020.IC designers expect Huawei to resume order momentum in 1H20: Taiwan-based IC design houses have seen orders from Huawei slow down recently, but remain upbeat that orders from the Chinese vendor will start picking up in the first half of 2020, according to industry sources.Hinge makers expect sales boost from foldable smartphones in 2H20: Taiwan-based hinge makers are expected to significantly benefit from foldable smartphones slated for launch in the second half of 2020, according to sources from the related supply chain.Samsung reportedly mulling using ToF 3D sensing solutions for Galaxy Note 11: Samsung Electronics is mulling using ToF-based 3D sensing technology for facial recognition for its upcoming Galaxy Note 11 slated for the second half of 2020, instead of in-display ultrasonic fingerprint sensors used in Galaxy S10 and Note 10 lineups that have been hit by security issues recently, according to industry sources.

Combined revenues of Taiwan Semiconductor Manufacturing Company (TSMC), United Microelectronics (UMC) and Vanguard International Semiconductor (VIS) are expected to hit another record-high level in the fourth quarter of 2019, Digitimes Research estimates.The top-3 Taiwan-based foundries' sales increased 18.8% sequentially to a record high of US$10.84 billion in the third quarter of 2019.Specialty IC foundry VIS has expressed caution about its sales performance for the rest of 2019, while TSMC and UMC both expect their sales to be driven by growing demand for 5G related applications. In particular, TSMC has enjoyed robust 7nm chip demand and continues to outperform its fellow Taiwan-based foundry rivals this year.Orders for smartphone- and HPC-related chip solutions boosted TSMC's sales generated from 28nm and more advanced process technologies to nearly 70% as a proportion of the company's total wafer revenues in the third quarter, Digitimes Research has found. Leading-edge processes, defined as sub-28nm technologies, surpassed 60% for the first time as a proportion of Taiwan's top-3 foundries' combined revenues during the quarter.Taiwan's top-3 foundries also enjoyed another sequential rise in their foundry ASPs in the third quarter, driven by growing sales generated from sub-28nm process technologies.But TSMC, UMC and VIS will see their combined revenues drop slightly on year in 2019.