Smartphone shipments to the China market are expected to fall over 10% on year in the first quarter of 2020 affected by seasonality, insufficient supply of 5G models, high inventory levels in the channels and the ongoing coronavirus outbreak, according to Digitimes Research.Sales of smartphones in China were weak in the fourth quarter of 2019 as macro-economic conditions were shaky amid the bruising trade dispute with the US, sales of 5G models were slackened due to their high pricing, and telecom operators were not offering meaningful subsidies for the purchases of 5G models.Overall smartphone shipments to the China market slid 1.5% on quarter and 7.2% on year in the fourth quarter of 2019, Digitimes Research has found.Huawei, Vivo, Oppo, Apple and Xiaomi were the top-five brands in the order in China in the fourth quarter, with their combined market share reaching 95.9%, down 0.2pp from a quarter earlier.Apple saw its iPhone shipments increase 40% sequentially in China in the fourth quarter, replacing Xiaomi as the fourth-ranked player in the market. Huawei also posted a sequential 40% shipment growth in the quarter, while shipments from Vivo, Oppo and Xiaomi continued to wane.

Many Taiwan-based IT firms are feeling the heat from the coronavirus outbreak that is delaying their production from returning normal following Lunar New Year. But TSMC and UMC have revealed that their fabs in China have been running as usual. Despite the foundry houses' reassuring revelations, many Taiwanese IC designers have turned cautious about their first-quarter 2020 performances, with some already lowering their sales guidance. For the displays industry, the virus-imposed lockdown of Wuhan may have serious consequences, as the Chinese city is home to several major LCD and OLED panel fabs of China-based makers.TSMC, UMC say production in China remains normal: Taiwan Semiconductor Manufacturing Company (TSMC) and United Microelectronics (UMC) have both said that production at their fabs in China stays on track and has not been affected by the coronavirus outbreak.Taiwan IC design houses turn cautious amid coronavirus outbreak: Taiwan-based IC design houses have turned cautious about customer orders particularly orders for the China market due to the coronavirus outbreak, with some already revising downward their sales guidance for the first quarter by 5-10%, according to industry sources.Coronavirus outbreak likely to complicate global panel supply: The lockdown of Wuhan due to the coronavirus outbreak could impact global panel shipments as the Chinese city is one of the major production bases for a number of China-based panel makers.

The Lunar New Year holidays in Taiwan have ended but many are not returning to work as usual because of the the coronavirus outbreak in China. Many IT firms have allowed its managers to delay their return to China, and Foxconn has decided its production in China will not resume until February 10. But a report from China claims that Wuhan-based memory startup Yangtze Memory Technologies (YMTC) has not seen shipments affected by the outbreak. At any rate, the outbreak may be giving manufacturers more motivation to move their production out of China, in addition to the US-China trade tensions. Pegatron will further ramp up its capacity expansion in Indonesia and Taiwan in 2020.Taiwan supply chains stay vigilant against coronavirus outbreak: Many Taiwan-based firms with manufacturing operations in China are taking precautionary measures to minimize impacts of coronavirus outbreak that has locked down the Chinese city of Wuhan.Wuhan chipmakers reportedly say shipments remain normal amid coronavirus outbreak: Memory startup Yangtze Memory Technologies (YMTC) and its 12-inch foundry subsidiary Wuhan Xinxin Semiconductor Manufacturing (XMC) have both claimed their chip deliveries remain normal despite coronavirus outbreak locally, according to a report by a Chinese news outlet.Pegatron to further ramp up capacity in 2020: Pegatron will continue its expansion projects in 2020, with plans to further ramp up the capacity of its plants in Batam, Indonesia and in Kunshan, China, as well as building new production and R&D facilities in Taiwan, according to company CEO and president SJ Liao.

Apple reportedly is looking to adopt scissor switch keyboards in its new 13.3-inch MacBook Pro and new iPads slated to be available later in 2020 and the strategy should benefit their Taiwan-based component suppliers. Meanwhile, hinge makers expect clients' hinge orders for their foldable smartphones to pick up in the second half of 2020, while Taiwan's IC backend houses are expanding capacity to satisfy demand for more complex chips.Apple new iPad lineup reportedly to feature scissor switch keyboards: Apple is likely to extend the adoption of glowing scissor switch keyboards to its new iPad lineup, with prospects of continuing such design for the comprehensive lineups of its notebook and tablet products in the future, according to industry sources.Hinge makers to ramp up shipments for foldable smartphones in 2H20: Taiwan-based hinge makers are expected to ramp up substantially their output for foldable smartphones starting the second half of 2020, according to industry sources.Taiwan IC backend houses to expand production capacity: Taiwan-based IC backend houses plan to implement their capacity expansion projects in 2020 to satisfy growing demand for more complex chip designs and high-end testing, according to industry sources.

IT firms worldwide are taking aggressive actions for their businesses in 2020 with some adopting strategies to defend its market status such as Intel, which is looking to cut its PC processor prices in the second half of 2020 to attract demand, while Inventec Appliances is expanding its capacity for AirPods, eyeing for more orders from Apple. China-based Yangtze is now pushing to do 128-layer 3D NAND flash manufacturing, while Qualcomm and MediaTek are expected to report double-digit increases in their 2020 sales because of their 5G products.Intel to cut PC processor prices in 2H20: Intel is expected to initiate price cuts on its PC processors in the second half of 2020 to defend its market dominance, according to sources at PC makers.Yangtze Memory gearing up for transition to 128-layer 3D NAND flash: Memory startup Yangtze Memory Technology (YMTC), in which China's state-owned Tsinghua Unigroup holds a controlling stake, has reiterated plans to transition directly from 64-layer to 128-layer 3D NAND flash manufacturing.Qualcomm, MediaTek to enjoy double-digit growth in mobile chip sales: Qualcomm and MediaTek are expected to each post a double-digit increase in mobile chip sales this year, with gross margin edging up single-digit percentage points thanks to the availability of their high-ASP 5G products, according to industry observers.Inventec Appliances ready to land more AirPods orders with new capacity: Inventec Appliances is expected to obtain more orders for Apple's AirPods in 2020 thanks to the availability of additional capacity after the firm's new plant in Nanchang, China's Jiangxi province, comes online later in the year, according to industry sources.

Computational Intelligence Technology Center under government-sponsored Industrial Technology Research Institute (ITRI) has developed an AI-based deep learning solution for use in training robotic arms to load and unload components onto and off production lines.Training by the solution is through letting robotic arms learn to grab and release randomly placed components at varying angles and force in 12 hours. Along with adjustment in production lines for making different products, training of robotic arms can be quickly adjusted accordingly.AI-based training can replace conventional training based on programming used to define each action, with the latter being complicated technologically and taking much time.Besides, tactile sensing is applied to training of robotic arms. Mechavision, a startup business spun off from ITRI in 2017, has cooperated with Japan-based Mitsubishi Electric to develop Finger Teach, a solution to train robotic arms using finger touch.According to ITRI's surveys, of collaborative robots adopted in Taiwan, 36% are used in manufacturing of electronics including ICs and PCBs, 32% in mechanical processing. Collaborative robots are used in match with AGVs (automated guided vehicles) in loading and unloading components for the former and, in addition to loading and unloading components, in grinding, paint spraying, glue coating and polishing processes and carrying semi-finished products for the latter.Collaborative robots (left) and robotic arms (right)Photo: Digitimes file

Future-Action Interactive Art has designed digital games for CTBC Bank to market its financial management services via immersive education of game players, according to company founder Bryan Cheng.Each game corresponds to a financial management service and related risks, with players collecting in-game items (financial management services) and having to manage to avoid sudden attacks (investment risks), Cheng said.The interactive game playing process provides immersive education of financial management concepts as well as knowledge about saving, investment and risks for game players, Cheng noted, adding the games also impress players with CTBC Bank's financial technology image.The games are available at CTBC Financial Park in Taipei.For points accumulated in game playing, CTBC Bank will donate to charities an equivalent amount of money on behalf of the players, Cheng said.In new media era, technology in AR- or VR-based immersive experience can be used to fuse corporate brand value, image and marketing appeals into interactive video or gaming scenarios to let consumers naturally receive the information intended to be transmitted, Cheng indicated.For the games designed for CTBC Bank, marketing effects hinge on not only AR or VR technology but also content, interesting interaction and natural transmission of corporate goals, Cheng explained.Future-Action recently designed a VR interactive theater for a Chinese martial arts novel to display elaborately written content of the novel using virtual scenarios for marketing purposes, Cheng said.Immersive experience-games available at CTBC Financial ParkPhoto: Future-Action Interactive Art

Strong demand for TWS earbuds is resulting in tight supply for button cells that they use. Now cell suppliers are increasig their production capacities to embrace the rising demand. The PC market may be slow, but Intel still sees a lot of opportunities from it. Frank Soqui, VP of Client Computing Group and GM of Gaming Division at Intel, recently told Digitimes in an interview about the company's strategy for the PC market.Cell battery makers keen on capacity ramps to meet rising demand from TWS earbud sector: A number of lithium-ion battery makers in Germany, China and Taiwan are mulling expanding their production capacities for button cells to cash in on increasing demand from the TWS (true wireless stereo) headset sector, according to industry sources.PC market still full of opportunities: Q&A with Frank Soqui, VP of Client Computing Group and GM of Gaming Division at Intel: Intel currently still holds an 80% share in the global PC market, but the growth of the CPU giant's PC platform business has weakened, thanks to prolonged shortages of its processors amid keen competition from AMD, who has TSMC's advanced manufacturing process support.

Heroic-Faith Medical Science expects its AI-powered respiratory monitor to receive US FDA clearance this year, according to Taiwan-based startup.Heroic-Faith said the AI-powered continuous respiratory monitor can perform the breathing sounds auscultation precisely, using Taiwan's cutting-edge noise-cancelling technology, but also count breathing rate and identify the so-called adventitious sounds caused by airway obstruction, spasm, and increased secretion, thanks to the advanced AI algorithm.Medical personnel can hear the breathing sounds broadcasting from the device or through Bluetooth earphones in real-time, and meanwhile, visually observe the sound spectrogram from the screen. The alert system further assists clinicians in early detection of respiratory compromises, according to the company.HeroicFaith's respiratory monitor has just won the Best Innovation Award out of the 13 contestants on a demo day held by AWS innovation center in Taiwan. It was also showcased at CES 2020.Respiratory monitoring is a crucial but often missing part in the practice of vital signs observation, according to the startup, which was founded in 2018. Aside from the traditional settings in critical care units and operation rooms, there is a rapid growing need as the utilization of procedural sedation anesthesia (PSA) increases. PSA is currently applied for various medical procedures, such as painless gastrointestinal endoscopic examinations, dental, plastic surgery, ENT, and OB/GYN procedures, and cardiovascular catheterizations. Patients under PSA do not need to suffer from endotracheal intubation, and therefore enjoy a shorter recovery time and fewer airway aftermaths. The total number of PSA performed annually in the US is estimated to reach 100 million, while there are four million practices annually in Taiwan. The mortality rate related to PSA is reported to be 2-5 persons in every 100,000 practices.Continuous respiratory monitoring is mandated during procedures under non-intubated sedation in the guidelines set by the American Society of Anesthesiologists and American Dental Association. In Taiwan, the rising fatal consequences also triggered more stringent regulation enforcement in patient safety monitoring. Until now, this requirement is often relied on the measurement of peripheral capillary oxygen saturation (SpO2) and end-tidal carbon dioxide (EtCO2), without direct breathing detection. The accuracy is in doubt when used in open-mouth/facial surgeries or high flow oxygen is needed.

Intel CPU shortages are expected to persist through 2020, with the entry-level segment bearing the brunt. Chromebook vendors are expected to adopt more AMD processors for their devices. In the semiconductor sector, TSMC expects the global foundry sector to see strong growth in 2020, with the Taiwan-based firm showing even stronger growth than the average. And in response to reported pressure from Washington for it to build a fab in the US, TSMC said it has no such plans. As for the car industry, PCB maker Chin Poon, who sees large portions of sales from the automotive sector, remains cautious about 2020.Intel CPU shortages likely to persist through end-2020: Shortages of Intel's PC processors are likely to persist through the end of 2020, prompting notebook makers to adopt AMD's chips in more of their notebooks including business models, according to industry sources.Global IC foundry sales to surge 17% in 2020, says TSMC CEO: The global IC foundry market is forecast to increase 17% in 2020, outpacing the overall semiconductor sector's 8% growth, according to TSMC CEO CC Wei. TSMC will continue to see its sales increase outperform the overall IC foundry market growth this year, said Wei.TSMC says no plans for US fab: In response to reports indicating Washington has increased its pressure on TSMC to have a plant in the US for the fabrication of high-security products, the Taiwan-based foundry said that it has no such plans in the short term but the feasibility is being evaluated.Automotive PCB maker Chin-Poon cautious about 2020: Taiwan-based automotive PCB specialist Chin-Poon Industrial is cautious about its performance in 2020 as chances are high that the global auto market may experience another year of sluggish sales, according to industry sources.Intel CPU shortages to remain throughout 2020Photo: Digitimes photo