Apple may have disbanded its team for the development of AR/VR HMDs (head-mounted displays), but that does not mean that the vendor is negative about the future of AR/VR technology. The 5G connectivity is said to be not mature enough for AR/VR HMD devices, but lens module maker Largan Pecision believes 5G smartphones will shore up demand for premium feature, such as better cameras.Apple reportedly suspends development of AR/VR headsets: Apple has suspended the development of head-mounted display (HMD) AR/VR headsets, and already disbanded its team for the development of AR/VR HMDs, according to sources familiar with the matter.Largan reports high gross margin for 2Q19: Smartphone-use lens module maker Largan Precision has reported its gross margin reached 69.6% in second-quarter 2019, the second-highest quarterly level next only to the 71.34% for third-quarter 2018.

For the IT industries, there are still many uncertainties, such as the outcome of the US-China trade talk, lying ahead for the rest of the year. TSMC's better-than-expected second-quarter sales may prompt optimism, but it remains to be seen whether its biggest client, Apple, can wow the market with its upcomig iPhones. Apple's PCB supplier Compeq Manufacturing feels the same uncertainty about the new iPhones despite significant first-half 2019 revenues growth. For notebook ODMs, shipments in June were impressive, but they are not sure whether shipment momentum can continue in the remaining months of the year.TSMC 2H19 performance hinges mostly on new iPhones sales: TSMC's better-than-expected revenues for second-quarter 2019 in defiance of some operational hiccups may have come as a confidence boost, but a spate of variables may affect the pure-play foundry's performance in the second half of the year, with the most crucial factor being the sales momentum of new iPhones to be released by its largest client Apple.Compeq gives guardedly optimistic outlook for 2H19: PCB firm Compeq Manufacturing has expressed guarded optimism for its sales outlook for the second half of 2019, even though its sales performance for the first half was better than the industry's average.Notebook ODMs see rising shipments in June, but conservative about 2H19: Taiwan-based notebook makers all saw their shipments in June rise on month. Nevertheless, their shipment outlook for the second half of the year appears cautious.

The Bakery, a UK-based accelerator of start-ups and entrepreneurs, has set up its Asia Operations Center at Southern Taiwan Science Park (STSP) to provide incubation services for local startup teams, according to Ministry of Science and Technology (MOST).The center is The Bakery's first operating base in Asia, and the company plans to enter the Japan, Singapore and China markets, according to its Taiwan partner, Flag Digital. With a global network of more than 10,000 enterprises, The Bakery focuses on startup teams engaged in AI, FinTech, robotics and digital media in Taiwan and aims to incubate 50 teams and attract total venture capital investment of US$30 million, Flag Digital said.An ecosystem for innovation and startup incubation has formed at STSP, MOST noted, adding STSP cooperated with National Cheng Kung University to set up the first accelerator, Start-up Workshop in 2015. Since then nearly 150 startup teams have been stationed at Start-up Workshop, and 79 of them have established companies with capital totaling NT$1.47 billion (US$47.8 million) and nine have moved to STSP's incubation center for further acceleration, MOST noted.Government-sponsored Industrial Technology Research Institute has set up an accelerator, StarFab, at STSP, focusing on smart manufacturing, smart medical care, smart finance and smart agriculture, MOST indicated, adding StarFab has helped 20 startup teams cooperate with enterprises with venture capital investment totaling NT$120 million.MOST has commissioned government-sponsored Metal Industries Research & Development Center to set up a maker base, AI_ROBOT, to provide resources and technological services for innovation developers. AI_ROBOT focuses on robotics, AI/AR/VR, IoT/big data, drones, smart agriculture and smart medical care for the elderly, MOST noted.MOST minister Chen Liang-gee indicated that startup businesses Appier, Kneron and iStaging stand a chance of becoming three Taiwan-based unicorns. Appier specializes in AI-based processing of voice signals, Kneron is a developer of software solutions based on reconfigurable artificial neural network, and iStaging is engaged in developing VR and AR software solutions.MOST minister Chen Liang-gee (center)Photo: MOST

Taiwan-based medical care solution developer Heroic Faith Medical Science has launched a fully automated chest sound monitor system that is able to automatically collect patients' breathing sound data and monitoring the breath via different angles using 6-8 detection pads.The data is able to assist doctors in making diagnosis. Since the system is able to monitor the early symptoms of many major lung diseases, patients can receive early treatment, said Fushun Hsu, company president.Meanwhile, the system also support artificial intelligence (AI) technology and is able to visualize the collected data and categorize them by disease type, Hsu added.Heroic Faith Medical president Fushun Hsu with a chest sound monitorPhoto: Mark Tsai, Digitimes, July 2019

TSMC has reported better-than-expected growth in revenues for the second quarter of 2019, with the prospect of seeing robust demand in the third quarter, partly driven by demand from Apple. The new iPhones to beleased by Apple are also expected to boost sales at PCB suppliers in the third quarter although their fourth-quarter sales remain to be seen. Meanwhile, one of Apple's major rivals in the smartphone space, Huawei, is aggressively cannibalizing its fellow vendors in China, having seen overseas consumers' confidence eroded by the US trade ban.TSMC posts revenue growth in June: Taiwan Semiconductor Manufacturing Company (TSMC) has reported consolidated revenues for June 2019 increased 6.8% sequentially and 21.9% on year to NT$85.87 billion (US$2.76 billion).FPCB makers to ramp up shipments for new iPhones in 3Q19: Taiwan-based flexible PCB makers, after ending the first half of 2019 with lower revenues than a year earlier, are expected to significantly ramp up shipments in the traditional peak season in the third quarter. But their order visibility for the fourth quarter remains unclear, according to industry sources.Huawei makes gains in China handset market at the expense of fellow vendors: Huawei has seen its share in China's handset market continue rising at the expense of other fellow brands, although the vendor's overseas shipments have been hampered by the US trade ban, according to industry sources.

The US and China m ay have entered into a truce to their trade war, but for Taiwan's notebook ODMs that means clients are now less eager to build up their inventory, affecting their shipments during the traditional peak season in the third quarter. In fact, the US-China trade war remains a key factor affecting various industries, with the semiconductor sector needing at least three months to digest its inventory. But in the NAND flash sector, despite its sufficient inventory levels, prices have dropped so low that they are expected to rebound.Notebook ODMs see June revenues rise, but 3Q19 shipments may be flat: Inventec has reported June revenues surged 16.7% sequentially, while other Taiwan-based ODMs are also expected to post substantial revenue increases for the month.Semiconductor supply chain needs at least 3 months to digest inventory: It will take at least three months for global semiconductor inventories to be digested while semiconductor supply chain players are still plagued by overcapacity and clients' conservative order placements, as a result of persisting global economic uncertainties, datacenter growth slowdown, memory demand recession and smartphone market saturation, according to industry sources.Samsung reportedly mulling 10% hike for NAND flash prices: NAND flash prices are expected to rebound in the near future, as Samsung Electronics is reportedly considering raising its quotes by as much as 10% and other peer makers including Micron Technology may follow suit, despite distributors still holding more than two months of inventories, according to industry sources.

Taiwan-based startup Sense Innovation is actively promoting its eye-tracking mouse software, EyePlayer, in cooperation with government and enterprise sectors in the form of SaaS (Software as a Service), according to company CEO Sid Chen.Chen said that the software is designed for people with disabilities in learning, job hunting, self-expression and other daily activities. He added that EyePlayer enables users to connect the world through the movements of their eyes, and users can easily learn how to use computer programs, browse web pages and check social networking sites.Sense Innovation has moved to help those in need to apply for subsidies from government health units and enterprises to purchase the software or pay annual membership fees to access the SaaS platform, Chen disclosed, adding that his company has accumulated 800 cases that need such assistance.Besides the market in Taiwan, Sense Innovation is planning to venture its EyePlayer software to China, Hong Kong and Southeast Asia, seeking to help home care, healthcare and early intervention segments better conduct relevant evaluations and judgments, according to Chen.He stressed that his company is committed to developing diverse software and hardware solutions, such as eye-tracking wearable devices, to cater to the needs of patients of different diseases.Sense Innovation CEO Sid ChenPhoto: Mark Tsai, Digitimes, July 2019

Despite hiccups over the last few months, including the US trade ban on Huawei that has roiled the smarrtphone market, TSMC's long-term outlook remains robust, thanks to its technological leadership that will keep its rivals at bay in the AI and 5G era. The semiconductor supply chain is banking on 5G to drive their businesses, such as CCL maker Iteq. Meanwhile, upstream suppliers expect robust demand from China's flat panel makers who are fast expanding capacity for the OLED applications. .TSMC extending tech lead over peers in 5G era, defying pricing threats: TSMC is widely expected to adjust downward its revenue and profit guidance for 2019 at its upcoming investor conference set for July 18 due to recent operational hiccups. But the pure-play foundry's longer-term performance prospects remain bright thanks to its firm leadership in advanced foundry and packaging technologies and high yield rates, both critical to processing next-generation AI and 5G chip solutions.CCL maker Iteq optimistic about 2H19 on strong 5G network demand: Taiwan-based CCL (copper clad laminate) supplier Iteq is optimistic about its revenue performance for the second half of 2019, driven by growing demand from suppliers of 5G network communication equipment, according to industry sources.Taiwan upstream suppliers gearing up efforts for OLED panels: A number of Taiwan-based upstream components and materials suppliers have been enhancing their deployments in the OLED panel segment to cash in on the growing penetration of OLED panels in the handset, wearable and other sectors, according to industries sources.

Electric scooter (e-scooter) vendor Gogoro will launch GoShare, e-scooters offered for sharing on a rental basis, in Taoyuan City, northern Taiwan, in mid-August 2019, according to company CEO Horace Luke.It will be the first time for Gogoro - which has been only selling e-scooters - to offer rental services, Luke said.GoShare users have to upload mobile phone numbers, scooter driver licenses, personal ID cards and photos via GoShare app, and the app will finish AI-based examination of such information in three minutes. The app will then let them know where rental e-scooters are available, with the designation of available e-scooters depending on users' riding needs such as running distance and direction. There is no mileage restriction using the e-scooters, but users have to return them to designated areas within the city. Rental rates will be announced in late July or early August.The service will be extended to other cities in Taiwan and abroad, Gogoro noted.Gogoro e-scootersPhoto: Yihan Li, Digitimes, July 2019

Huawei has suspended its notebook orders and projects since the US hit it with a trade ban, but its ODMs have disclosed that the Chinese client has now turned upbeat following the recent easing of the ban. But it remains to be seen whether or how fast Huawei can restore consumer confidence in its devices, particularly smartphones. But at least Huawei seems more confident that there is no pressing need to launch its own smartphone OS as soon as possible.ODMs optimistic Huawei will resume notebook deliveries and developments: ODMs and other suppliers engaged in the supply chain for Huawei's notebooks have disclosed that they will be informed in two weeks' time whether deliveries and developments for the Chinese client will resume.Huawei smartphone shipments expected to shrink in 3Q19 despite easing of ban: Although the US government has eased its restrictions on Huawei, the Chinese smartphone vendor may see its shipments continue to shrink in the third quarter of 2019 as worries over its handset business among channel operators and consumers remain, according to industry sources.No timetable set for Huawei Ark OS launch, says executive: Huawei has set no clear-cut timetable for the launch of its own handset operating system, dubbed Hongmeng OS, which could also be known as ARK OS globally, according to the firm's vice chairman Ken Hu.