Demand for 7nm manufacturing capacity at TSMC is so strong that long lines have been formed trying to secure supply from the foundry house for the advanced process. As supply is tight, TSMC has reportedly asked clients to book capacity well in advance for the entire 2020. Part of the reason for the strong demand of TSMC's 7nm capacity is the coming of the 5G era. It is expected that 5G-enabled smartphone shipments to the Chinese and Korean markets will reach 10 million units in 2019. Meanwhile, Taiwan-based foundry UMC, though not as eager as TSMC in advancing manufacturing nodes, is expected to see significant sales growth in 2020, partly thanks to expansion in the Japan market.TSMC advises clients to book 7nm capacity for entire 2020: TSMC has advised its clients to book foundry capacity well in advance for their 7nm chip demand for the entire 2020, according to industry sources.5G phone shipments in China, Korea to total 10 million units in 2019: Combined shipments of 5G-enabled smartphones from Chinese and Korean vendors are expected to reach about 10 million units in 2019 - a result of collaboration between telecom operators and handset makers, according to market observers.UMC revenues to climb at least 10% in 2020: Pure-play foundry United Microelectronics (UMC) is expected to post revenue growth of at least 10% in 2020, thanks mainly to its expanded business scale in Japan, according to market sources.

Despite the global semiconductor industry's weakening demand in the first half, China's semiconductor industry continued to perform stably with sales rising 11.8% on year during the period, but the growth was still weaker than that of first-half 2018, according to Digitimes Research's figures.The China semiconductor industry's short-term development is likely to continue being constrained by a weak economy, US-China trade tensions and a lack of advanced technology and talent. However, for the medium to long term, demand created by emerging technologies and support from government policies are still expected to drive China's semiconductor market growth.Of the global semiconductor industry's sales in the first half, over 30% were contributed by China, the largest semiconductor market. However, the China semiconductor industry's rapid growth cannot be achieved without the strong support by government policies and funds. Sales of China's semiconductor industry in 2018 doubled from those in 2014 with the IC design sector having particularly strong growth.Cities in the eastern coast of China are still the key hub of the country's semiconductor industry, but several western cities including Xian, Chengdu and Wuhan, have also been aggressively developing semiconductor applications and are poised to become another hub for the industry, Digitimes Research believes.Despite the effort of the China government nurturing the local semiconductor supply chain, it still cannot function independently much, especially in the IC design segment. Currently, China-based players can only supply less than 5% of ICs for high-end and specific applications, and the problem is becoming more critical because of the trade war between China and the US.In the IC design sector, China has been accelerating local capability in the entry-level to mid-range segments, but it still depends heavily on US-based ICs in the high-end segment.China's development in IC manufacturing and packaging/testing is more mature than IC design, and local players in the fields are able to replace or compete against non-China players, but for more advanced manufacturing technology, China currently still relies on Taiwan.As for raw materials and equipment, Chinese suppliers only have a very small presence and the industry is highly dependent on the US and Japan for supply.

UK-based Everledger has announced it has completed its US$20 million series A funding. The round comes to a close with the backing of China's Tencent Internet-based services provider. Graphene Ventures, Bloomberg Beta, Rakuten, Fidelity and Vickers Venture Partners have also participated, according to Everledger.Leanne Kemp, founder and CEO of Everledger, said, "Today's announcement amplifies our commitment to global markets, whilst fuelling our industry momentum as we continue to build Everledger. Having this strong investor cohort join us at this stage in our development is both validation of the innovation we've displayed to date, and a statement of future intent. They will support us in bringing more visibility to good business practices in industries that impact millions, if not billions of people in developing countries.""Everledger's application of blockchain technology enhances value to consumers and reduces risks for businesses across the industry", said James Mitchell, chief strategy officer at Tencent. "We are delighted to support Everledger to improve the transparency and sustainability of global supply chains." Tencent is now represented in the Everledger board.Kemp said Everledger and Tencent share strategic synergies, disclosing that Everledger will launch a WeChat Mini Program for blockchain-enabled diamonds, uniting key stakeholders in the diamond value chain, which aims to empower WeChat users to buy jewellery with more transparency and security, said Kemp.

Chunghwa Telecom (CHT) is teaming up with electronic map and navigation software provider Kingwaytek Technology to build a local government-backed 5G test field in northern Taiwan for the development of IoV and autonomous solutions, according to Tsai Min-hung, a section chief of CHT's mobile business group.The test field, to be located at Hutoushan Innovation Hub in Taoyuan, will help local companies develop and verify solutions dedicated for C-V2X (cellular vehicle-to-everything) applications, particularly for providing real-time traffic conditions to improve driving safety, Tsai said.Related services available at the test field also aims to help enterprises come up with diversified 5G solutions and figure out clear-cut business models for their 5G businesses, Tsai added.Prior to the release of 5G spectrums and finalization of global C-V2X protocols, CHT and Kingwaytek will build up a guided framework based on 4G and MEC (multi-access edge computing) technologies to offer high frequency and low latency communications solutions to test data transmission and collaborative functions between traffic control equipment and self-driving vehicles operating within the hub, Tsai disclosed.Related high-frequency solutions developed within the hub can also apply to applications including live broadcasting, cloud digital games, in-vehicle infotainment system and paramount shooting, Tsai added.

Last week's news about TSMC extending 7nm chip production lead time because of strong demand provoked knee-jerk speculation that it was the cause of AMD delaying the launch of its Ryzen 9 3950X. It has turned out that unsatisfactory clock speed - rather than foundry support - has prompted AMD to adjust the design of 16-core processor, according to sources from the motherboard suppy chain. TSMC may be indisputably the leader in the foundry sector, but China-based peers are keen to expand 12-inch fab capacity to better serve the domestic market. And China-based chip vendors are also eyeing the 5G mobile SoC market. The entry-level to mid-tier 5G mobile SoC market segment will see particularly intense competition.AMD delays Ryzen 9 3950X launch due to unsatisfactory clock speeds, sources claim: Unsatisfactory clock speeds are the cause of AMD delaying launch of its 16-core Ryzen 9 3950X processor, which has nothing to do with support from its foundry partner TSMC, according to sources at motherboard makers.More 12-inch wafer fabs come online in China: China-based foundries including Hua Hong Semiconductor, CanSemi Technology, and memory startup ChangXin Memory Technologies (CXMT) have recently started operating their new 12-inch wafer fabs in the country, where more new 12-inch fabs are expected to come online by 2020, according to industry sources.Chipmakers eyeing entry-level to mid-tier 5G SoC market: The entry-level to mid-tier SoC solution segment has become the main battlefield for winning 5G SoC orders as major chip players including Qualcomm, MediaTek and Unisoc are gearing up efforts to enhance their deployments in the segment, according to industry sources.

Blockchain technology can be applied to manage patients' healthcare records, allowing them to access encrypted data and determine whether to decrypt the data when delivered to home doctors, health councilors or insurance firms for reference, according to Jacob Lee, founder and CEO of Digital Treasury (DTCO).While information security and data encryption and decryption must be strengthened in the process of digital transformation at hospitals, Lee said, delivery and use of patients' medical records can be better done on a classified authorization basis. He reasoned that hospitals do not have to provide X-ray or computed tomography images of patients if their medical records are needed as reference for purchasing health products.Lee continued that follow-up tracking of authorized release of medical records must also be carried out thoroughly, as patients may forget, after a long time, who are licensed recipients of their health records. With the tracking practice, Lee said, data integration and management can be better done and patients' autonomy over data can be better safeguarded.

PC vendors are bracing for a repeat of Intel's CPU shortages that had plagued the market for several quarters since mid 2018. Supply might have been improving earlier in the third quarter, but the latest news coming from the supply chain is that Intel 14nm CPU manufacturing capacity is falling short of demand again. But PC vendors may have alternative CPU supplies from China. At least one China-based CPU developer is ready to volume-ship its ARM processors for the doemstic desktop market.Intel sees 14nm chip supply fall short of demand again: Intel has seen its 14nm chip manufacturing capacity fall short of demand again recently, which may force many notebook vendors to postpone their new model launches to next year, according to industry sources.China homegrown processors to be ready for mass shipments in 2020: China's homegrown processor makers will be ready for commercial shipments of their newly developed CPUs and GPUs in 2020, according to industry sources.

With the US suspending the tariff on notebook imports from China until December 15, the pressure on notebook brand vendors pre-stocking extra inventory has been significantly eased, according to Digitimes Research.The top-5 notebook brands' combined shipments were lower-than-expected in August, going up only 5% on month and 2% on year, as they slowed down inventory build-ups.Hewlett-Packard's (HP) August shipments picked up 16% on month, a growth only eclipsed by Asustek's 18%, while Lenovo's volumes only rose by 3% on month, Digitimes Research's figures show.Dell saw revenues slip 9% on month in August due mainly to its weak shipments to the consumer sector, while Acer had an on-month shipment growth of 3% during the period, Digitimes Research noted.Of the top-3 ODMs, Quanta Computer and Wistron both recorded over 10% on-month increases in August shipments thanks to rising orders from clients, while Compal saw a 1% decline as a result of Dell cutting orders.

The Ministry of Science and Technology (MOST) has announced AI Technology R&D Guidelines in a bid to create a reliable environment conforming to international trends of AI R&D and to provide directions for Taiwan AI researchers to follow.Considering AI's disruptive innovations in many areas, such as biomedicine, autonomous vehicles and education, and its potential negative impact on human economic, social and political life, many countries and organizations have established ethics standards for AI R&D, such as the EU's Ethics Guidelines for Trustworthy AI, OECD's Principles on Artificial Intelligence and IEEE's Ethically Aligned Design-Version II, MOST noted.MOST said its guidelines are based on three core values: (1) Human-centered, an AI-based society should respect human dignity, rights and freedom and application of AI is to prompt human welfare and hike human living standards; (2) sustainable development, AI R&D should seek balance among economic growth, social progress and environmental protection to reach co-existence and common prosperity among human being, society and environment; (3) diversity and inclusion, AI R&D is to create an AI-based human society of diverse value concepts and backgrounds via interdisciplinary dialog mechanisms, MOST explained.There are eight guidelines derived from the three core values: (1) Common good and well-being among human being, society and environment; (2) Fairness and non-discrimination. R&D of AI hardware, software, algorithms and related decision making should respect human dignity and rights to avoid risks of prejudice and discrimination; (3) Autonomy and control. As AI is applied to helping men's decision making, R&D staff members of AI hardware, software and algorithms should let human being have complete and effective autonomy and control of such technologies; (4) Safety. R&D staff members should secure stable and safe technological operation of AI hardware, software and algorithms, including risk control and monitoring, to build reliable AI environment; (5) Privacy and data governance. Effective data governance is crucial to protection of privacy, therefore, AI R&D staff members should have collection, processing and use of personal data in compliance with regulations concerned; (6) Transparency and traceability. In fairness to interested parties affected by AI decision making, information concerning development and application of AI hardware, software and algorithms, such as modules, mechanisms, parameters and computing, should be provided and disclosed in minimum to enable general understanding of how the AI decision is made. In addition, data, data labeling and algorithms used in the AI decision making have to be appropriately recorded and stored to let them traceable to interested parties affected by AI decision making for relief and clarification; (7) Explainability. AI decision making should be presented to make it explainable to users of AI hardware, software and algorithms as well as interested parties affected by the AI decision making; (8) Accountability and communication. For AI hardware, software and algorithms, mechanisms should be established for explaining AI decision making processes and consequences as well as for accountability, communication and feedback of opinions.

While demand for its 7nm manufacturing node has been strong, TSMC is ready to move its more advanced 5nm process to volume production in first-half 2020 - probably as early as March. The foundry house has been fast developing advanced chipmaking processes. It has also been keen on developing new packaging technology in support of its task to extend the relevance of Moore's Law.TSMC to volume produce 5nm chips as early as March 2020: TSMC is expected to move its more advanced 5nm process technology to volume production as ealy as March, according to industry sources.TSMC may join forces with OSAT firms to build SoIC ecosystem: In the era of heterogeneous chips integration, Taiwan Semiconductor Manufacturing Company (TSMC) is expected be among global top-3 players in the advanced 3D IC packaging field along with Intel and Samsung, but the company is also likely to build an SoIC (system-on-integrated-chips) ecosystem in cooperation with Taiwan-based OSAT (outsourced semiconductor assembly and test) firms, according to industry sources.