Taiwan's major notebook ODMs had weak results in July as clients were reluctant to further build up inventory despite the upcoming 10% tariffs the US will impose on their notebooks imported from from China. Some clients have also failed to make it clear whether they want the manufacturing partners to move production out of China to avoid the US tariffs. But in the semiconductor sector, TSMC is likely to hit record revenues in fourth-quarter 2018, with strong shipment momentum building up for its 7nm process.Notebook ODMs post sharp shipment drops in July: Major notebook ODMs saw sharp declines in shipments in July, as clients showed little intention of accelerating inventory buildups despite the US decision to slap 10% tariffs on imports from China, including notebooks, starting September.TSMC to see revenues rise substantially starting August: TSMC is expected to enjoy substantial revenue growth starting August with the momentum to continue through the last quarter of 2019, according to market watchers, who expect the pure-play foundry to post record-high sales for the fourth quarter.

There have been signs that the impact of the US trade ban on Huawei may be waning, as the Chinese vendor has recently set an even more ambitious goal for its handset shipments for 2019. Huawei has also resumed orders for notebooks and 5G notebook development that it had suspended in the wake of the trade ban. While it is uncertain when Huawei may introduce its 5G notebooks, the next-generation cellular network technology is promising explosive growths for players across all IT sectors, such as the world's top pureplay foundry TSMC, who leads in cutting-edge 7nm and and more advanced processes.Huawei resumes notebook orders, development of 5G models: Huawei has resumed pulling in new orders for notebooks and also restarted the development of 5G-enabled notebook models, according to sources from the vendor's Taiwan-based supply chain.TSMC gearing up for another semiconductor supercycle: The global semiconductor market is set to enter a dynamic new phase of growth, as the era of 5G network looms around the corner. TSMC, the world's largest pure-play foundry, is also eyeing opportunities arising from 5G with its competitive 7nm and more advanced process technologies.

AMD is expected to grab a larger share of the server market thanks to its newly launched EPYC server processor platform. Taiwan-based components suppliers are generally upbeat following the AMD server processor launch, but there is concerns about the strength of its shipments in the third quarter, as datacenter clients have slowed down their deployments. Meanwhile, there are growing concerns about oversupply in the flat panel display industry, as China-based Chongqing HKC Optoelectronics is set to start commercial production at a new 8.6G line early next year.AMD to enjoy rising share in server market with new generation EPYC platform: AMD has launched its second-generation EPYC server processors manufactured using Taiwan Semiconductor Manufacturing Company's (TSMC) 7nm process technology, and the new platform is expected to raise AMD's share of the global server processor market to 10% in 2020, according to market sources.CCL makers poised to gain from AMD PCIe 4.0 server CPU launch: As AMD has newly launched second-generation EPYC processors, dubbed Rome 7002 series, as the world's first 7nm x86 server CPUs that support PCIe 4.0, Taiwan-based CCL makers ITEQ and Elite Material (EMC) are poised to embrace new business opportunities arising from the new server transmission architecture of PCIe Gen 4, according to industry sources.HKC 8.6G line nears completion: China-based flat panel maker Chongqing HKC Optoelectronics has held a topping-out ceremony for its new 8.6G fab being built in Mianyang, Sichuan, paving the way for the new fab to kick off commercial production in the first quarter of 2020.

Samsung has just launched its Galaxy Note 10, with its suppy chain partners expecting the new smartphone series to prompt rivals to adopt similar specs for their offerings, including slim vapor chamber. The new Samsung Galaxy Note 10 is also set to drive the adoption of ToF 3D sensing cameras among high-end smartphones, boosting demand for VCSEL components. Now the supply chain expects global 5G handsets to reach about 140 million units in 2020, fueling growth momentum for components suppliers.Samsung pioneers adoption of 0.35mm vapor chamber in new Galaxy series: Samsung Electronics has taken the lead to adopt 0.35mm vapor chambers (VC) in its newly released Galaxy Note 10 series, which may become mainstream smartphone heat-sinking spec in 2020 as many other vendors including Huawei, Oppo and Vivo are expected to follow suit, according to industry sources.VPEC enjoys robust demand for VCSEL components: Epitaxial wafer supplier Visual Photonics Epitaxy Company (VPEC) has enjoyed a ramp-up in demand for vertical-cavity surface-emitting laser (VCSEL) components for use in smartphones and other mobile devices, and will see revenues generated from orders for VCSEL chips climb dramatically in 2019, according to industry sources.5G deployments, availability of 5G phones to drive demand for power semiconductor components: The ongoing deployments of 5G infrastructure and promising demand for 5G-focused phones that will come along with the commercial runs of 5G networks will continue to spur demand for semiconductor components including RF ICs, networking chips and power amplifiers (PAs), according to industry sources.

Huawei's handset shipments seem to have defied the US trade ban, registering strong growth in the second quarter and sending the vendor setting an even more ambitious goal for the entire year. Its impressive shipments have been bolstered by demand in its home market, where domestic brands have a dominating presence. Worldwide smartphone market leader Samsung Electronics has lost its leadership in the China market, but the Korean giant's smartphone chip business could benefit from that loss. Can Huawei ship 270 million handsets in 2019?: Huawei should have seen its smartphone shipments much affected in the second quarter of 2019 after being blacklisted by the US government in early May.China handset makers may use Samsung Exynos chips for 5G phones: One of the top-four handset brands in China reportedly has decided to adopt Samsung Electronics' Exynos platforms for the production of 5G smartphones, according to industry sources.

The latest escalation in the US-China trade war may have cast a shadow over the IT supply chain, but the world's top foundry house TSMC is seeing strong demand for its 7nm production capacity. One of its major clients for the 7nm node is China-based HiSilicon, the IC design arm of Huawei, who has seen growing demand at home despite setbacks in overseas expansions due to the US trade ban. The freshly announced US tariffs on Chinese imports actually have come as a short-term boost to Taiwan-based notebook ODMs' shipments, as their clients seek to build up extra inventory. TSMC enjoys robust 7nm chip demand: Taiwan Semiconductor Manufacturing Company (TSMC) has enjoyed strong demand for 7nm chips and already utilized 100% of the process capacity since the third quarter of 2019, with orders placed by not only its major clients including Apple, Huawei and AMD but also crypto mining chipmaker Bitmain Technologies, according to industry sources.HiSilicon enhancing in-house chip development capability: HiSilicon Technologies, a chipset solution arm of Huawei, has been ramping up its chipset orders for 7nm and other advanced node products at Taiwan Semiconductor Manufacturing Company (TSMC), as the firm is gearing up efforts to build up its in-house IC development capability, according to industry sources.Notebook ODMs to post higher-than-expected shipments in August: Notebook ODMs are expected to enjoy higher-than-expected shipments in August, as the 10% tariff on China-sourced notebooks staring September 1 has promoted brand vendors to stockpile inventories by asking production partners to deliver as many shipments as possible by the end of the month, according to industry sources.

UK startup Yourgene Health, engaged in non-invasive prenatal testing services, is promoting its bioinformatics and next-generation gene sequencing platforms seeking to help materialize precision medicine and popularize genetic tests, according to Darren Lin, head of the firm's research services.Lin said that his company can collect and analyze related big data for gene sequencing and testing applications, and can leverage latest ICT technologies to sharply boost testing accuracy and lower testing costs, making precision medicine and genetic tests more easily achievable and affordable.Lin said only blood from the arm is needed to conduct non-invasive prenatal testing, generating no amniocentesis-associated risks. Based on statistics, a fetus 10-12 week old can provide the most embryo chromosome, he said, adding that the volume of fetus chromosome must reach at least 3.5% of the given blood sample to secure the DNA test accuracy for the fetus.Lin noted that Yourgene Health is moving to lower gene sequencing cost, now commanding the largest portion of non-invasive prenatal testing charges. He added the company now focuses on three business aspects: metagenome sequencing, whole genome sequencing (WGS) and whole exome sequencing (WES).Darren Lin, head of research services at Yourgene HealthPhoto: Mark Tsai, Digitimes, July 2019

The latest US move to slap 10% tariffs on US$300 billion worth of Chinese goods has cast a shadow over the prospect of a significant recovery for the IT supply chain in the second half of 2019. TSMC and Intel may have to lower their guidances. Intel also faces strong challenges from AMD, who sees growing popularity for its latest 7nm offerings.US new tariffs on Chinese imports may dim TSMC, Intel prospects: The Trump administration's latest move to slap a 10% tariff on the remaining US$300 billion worth of Chinese imports, including handsets, notebooks and TVs, starting September 1 may significantly dent the sales upturn momentum for terminal markets, which in turn will cloud the prospects for relevant supply players, with even TSMC and Intel very likely to adjust downward their guidance at least for the fourth quarter of the year, according to industry sources.AMD to see DIY PC market share hit 10-year high of over 30% by end-2019: AMD has seen growing adoption of its new-generation 7nm chips including Ryzen 3000 seies processors and Radeon 5700 series GPUs by makers of PCs, motherboards and graphic cards as mainstream chipsets, and its share of the DIY PC processor platform market is expected to surge to a 10-year high of over 30% by the end of 2019, according to industry sources.

UK-based startup Kheiron Medical Technologies, dedicated to AI analysis of breast cancer, has successfully developed a mammography intelligence assessment (Mia) system with high cancer screening sensitivity and specificity, according to the firm's Compliance and Clinical Ops Lead Annie Ng.Ng said at a UK Innovation Medtech Workshop held alongside the recent BIO Asia-Taiwan 2019 that her company's Mia system can provide a suggestion of whether a women should be called back from screening or not and highlight regions of interest.She continued that Kheiron's Mia system carries a screening sensitivity of 90% and specificity of 89%, compared to 75-87% for the former and 85-89% for the latter. Additionally, the Mia system can be integrated with the Picture Archiving and Communication System (PACS) to help doctors work out better medical care solutions for patients.Ng also noted that Kheiron has won the ISO 13485 medical devices, quality management systems requirements certification, and is the first British company certified by CE for a radiological deep learning software.

Apple saw disappointing iPhone sales during its fiscal third quarter 2019, and its component suppliers see weak order visibility for the vendor's upcoming iPhones. And things seem to be heading for the worse for Apple following US President Donald Trump's latest move to impose tariffs on more China-made goods, further damaging confidence across many industries. In the display panel industry, falling prices and weakening demand are sending suppliers reducing output. There are still some market segments where makers still have high hope, such as 5G. Now notebook makers are eager to roll out 5G notebook models by the end of this year.Components suppliers see low order visibility for new iPhones: Apple has started making preparations since July ahead of the launch of new iPhones in September, but order momentum for touch panels and other components has been weak, according to industry sources.AUO, Innolux likely to reduce output to shore up panel prices: Taiwan's top-two flat panel makers, AU Optronics (AUO) and Innolux, are expected to follow in the steps of their rivals in China and Korea to cut back their output in order to prevent panel prices from falling further, particularly for large-size TV applications, according to industry sources.Notebook vendors gearing up to launch 5G models: The world's top-3 notebook vendors Lenovo, HP and Dell are set to introduce their first 5G models in the second half of 2019, and Apple is also expected to roll out its 5G MacBook series in the second half of 2020, according to industry sources.