Smartphone application processor (AP) shipments to China vendors registered a larger-than-expected increase sequentially in the second quarter of 2019, thanks to deliveries made in advance to avoid the burden of potential tariffs from the US, according to Digitimes Research.Smartphone AP shipments to China surged 39.1% sequentially in the second quarter, according to Digitimes Research's latest China Smartphone AP quarterly report. Looking into the third quarter, Digitimes Research forecast smartphone AP shipments to China will increase by a mere 0.2% sequentially but decline 7.6% on year. Shipments will decrease 2.5% sequentially in the fourth quarter, due mainly to seasonal factors, Digitimes Research said.In addition, 12nm will become the mainstream process technology for the manufacture of smartphone APs for the China market in the third quarter. Of the total smartphone APs shipped to China, 12nm chips will account for nearly 30% while chips built using a more advanced 7nm process will reach around 10% as a proportion of shipments.Qualcomm will see its shipments affected by the ongoing trade disputes between the US and China in the third and fourth quarters, when shipments of its smartphone APs to China are forecast to drop 3.8% and 2.7%, respectively, on quarter, according to Digitimes Research.On another front, MediaTek's smartphone AP shipments to China will grow 5.8% sequentially in the third quarter driven by orders from Huawei, Oppo and Vivo. Shipments will drop on a sequential basis but increase 4.6% from a year earlier in the fourth quarter.

Taiwan-based startup Medical Innovation Technology (MIT) has been dedicated to promoting its medical image recording platform to address the needs of regional hospitals, clinics and long-term care institutions, according to company president Stevens Chen.Chen said that MIT can offer medical image recording apps, including eSnapshot platform, to help medical units with fewer tech resources to collect, store, and file their healthcare images for diverse application scenarios in a more cost-effective way.Chen said ordinary visible injury images can be stored in databank in the form of JPG files so as to sharply lower costs, but if needed, the PJG files can be converted into the digital imaging and communications in medicine (DICOM) protocol and then stored in the picture archiving and communication system (PACS) for further application.Chen said that in line with growing awareness of patients' autonomy and rampant development of AI applications, medical establishments must adopt new collection and storage solutions for medical images to facilitate wider applications in the future.He said MIT's eSnapshot app, now available on Google Play and Apple Store, allows the use of personal mobile devices to record images of patients' wounds or physical symptoms to address possible medical disputes.The eSnapshot platform can be connected with healthcare information systems at hospitals to provide wounds recovery progress, patients' personal data management and diverse healthcare image collection services. This allows hospital managers or physicians to focus on management and medical care, according to Chen.Chen said his company will also extend its image recording systems to long-term care institutions.Medical Innovation Technology president Stevens ChenPhoto: Mark Tsai, Digitimes, August 2019

Apple is expected to launch its new iPhones soon, but it seems few would expect strong sales or major spec upgrades for the new phones. News from the supply chain has claimed that PCB order momentum ahead of the new iPhone launch has been weaker than that seen in previous years. But others in the 3D sensing components segment reportedly are receiving a boost from shipments for the upcoming iPhone.Orders for upcoming iPhones conservative, say PCB firms: Orders for the iPhones slated for launch in September have thus far been weaker compared to the momentum in previous years, according to sources at PCB makers.Win Semi, Xintec and ShunSin ramping up shipments for 3D sensing components: GaAs foundry Win Semiconductors, and backend houses Xintec and ShunSin Technology have started ramping up shipments for structured light 3D sensing components in the third quarter of 2019, according to industry sources.

Micron Technology has unveiled a new NAND flash fab in Singapore with commerical run to start later this year focusing on 96-layer and beyond 3D processes, as it seeks to rely on technology advancements to increase bit-output. The company has also noted that the memory market will be relatively normal in the second-half 2019 after seeing weakened demand in the first half. In China, foundry house SMIC is also making tech advancements, ready to move its 14nm FinFET process to volume production by the end of 2019.Micron opens new NAND flash fab in Singapore: Micron Technology has unveiled a new 12-inch fab at its manufacturing site for NAND flash memory in Singapore, and expects the facility to ramp up production in the second half of 2019 focusing on 96-layer and higher 3D processes.SMIC to move FinFET process to volume production by year-end 2019: China-based pure-play foundry Semiconductor Manufacturing International (SMIC) expects to have its more-advanced 14nm FinFET process ready for volume production by the end of 2019.

The US is delaying imposing 10% tariffs on some consumer electronics products from China, including notebooks and handsets, but the cloud of uncertainty created by the US-China trade war is still hovering over the IT industry. Taiwan-based notebook ODMs remain conservative about their shipments in the second half of 2019. Worse still, Compal Electronics has even warned that Intel CPU shortages will not fully ease until first-quarter 2020. At any rate, notebook ODMs are moving some of their production out of China to avoid any possible impact on their shipments to the US. Manufacturers of Apple's wearable devices, such as AirPods, are also mulling leaving China.Notebook ODMs conservative about 2H19, as Intel CPU shortages remain: Compal Eletronics has warned that Intel CPU shortages remain a factor, along with the US-China trade war, affecting notebook shipments, with the ODM expecting a decline in the third quarter before a rebound in the fourth.Notebook ODMs set to move part of production outside China: The US government's latest decision to delay the impelmentation of a 10% tariff on notebook imports has not changed the minds of notebook ODMs who have already made plans to move some of their production out of China, according to industry sources.Makers mulling moving wearables production lines out of China: While the US is delaying imposing additional tariffs on some imports from China until December 15, supply chain makers are still evaluating the possibility of moving their production capacity for wearable devices such as Apple's AirPods outside China in response to rising relocation calls from clients, according to industry sources.

For startups, the most critical factor determining their survival rests with whether their innovative products and services can pass market validations and if their business models are feasible or not, according to Vincent Tseng, CEO of the National Taiwan University Taidah Entrepreneurship Center (NTUTEC).Tseng said startups have to fast correct their business models if proved not feasible. He stressed that existing enterprises are experts in various business domains, and their validation platforms will give startups a better chance to survive. Since January 2019, NTUTEC has carried out a "vertical accelerator" project by collaborating with a spate of medium- and large-size enterprises including AU Optronics (AUO), E. Sun Bank, FarEastone, Team Creative and iSurvey to provide platforms for validating products and services developed by startups, helping them commercialize their offerings.Under the project, each participating startup can receive six-month instructions from collaborating enterprises on feasible business models and customer requirements in the validation process.

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.