Japan's online video market is expected to grow significantly starting the second half of 2015 when Netflix begins to offer its services, NTT DoCoMo launches its dTV Terminal program and the local top-five cable TV operators start offering free online video services, according to Digitimes Research.Wireless TV operators Nippon, Asahi, Tokyo, Fuji and TBS have been offering quality TV programs free of charge, making it difficult for cable TV operators to promote online paid video services.The portion of consumers in Japan who have not subscribed to paid TV for over a year reached 60% in 2014 compared to 1% in the US, according data compiled by Deliotte. Additionally, the number of subscribers who stream video accounts for only 4% of total paid video service subscribers in Japan.However, streaming video is gaining momentum in Japan, with most wireless TV operators to begin to offering online video services free of charge for the first seven days starting October.NTT DoCoMo currently has a total of 4.6 million subscribers to its online video service, dVideo. The vendor has recently changed the name of its online video service from dVideo to dTV and also supplied subscribers with OTT (over-the-top) STB devices for easy access to the program, Digitimes Research noted.
Networking chipset vendors including Broadcom, Cavium and Applied Micro Circuit (AMCC) have taken the initiative to replace PowerPC and MIPS architectures with ARM's for developments of server processor solutions for new networking communication equipment, including SDN (software-defined networking) and NFV (network functions virtualization) devices, according to Digitimes Research.Since ARM-based architecture sports a number of features including power-saving, highly integration and scalability for multi-core operations which are in line with the development trends for cloud computing, networking chipset vendors are also likely to develop ARM-based chips for micro servers.Meanwhile, the popularity of the OpenPOWER architecture launched by IBM in 2013, which is similar to Sun Microsystems's OpenSPARC, is expected to ebb further despite the support from Google, Digitimes Research asserted.
The production value of Taiwan's IC design industry is forecast to rise 14.3% sequentially to NT$140.07 billion (US$4.58 billion) in the second quarter of 2015, buoyed mainly by a seasonal pick-up in shipments for smartphones, according to Digitimes Research.Taiwan's IC design industry, led by MediaTek and the local major LCD driver IC specialists, posted production value of NT$122.5 billion in the first quarter of 2015. Affected by seasonal factors and fewer working days in February as a result of the Lunar New Year holiday, the production value for the first quarter was 11.4% lower than the prior quarter's level, said Digitimes Research.In the first quarter, MediaTek suffered a revenue decrease of 14.3% sequentially while Novatek Microelectronics and Himax Technologies both saw their revenues decline more than 16%, Digitimes Research observed.Combined revenues of Taiwan's top-10 IC design houses experienced a 12.2% sequential drop, due to weaker smartphone demand in China, inventory adjustments at Korea-based panel vendors, as well as falling DRAM prices, Digitimes Research noted.
Shipments of smartphones in China totaled 83.6 million units in the first quarter of 2015, decreasing 20 million units or 17.5% sequentially from the previous month, according to Digitimes Research.Sales of high-end models from local brands in the first quarter were affected by continued brisk sales of iPhone 6 devices, while some brand vendors and local white-box makers failed to roll out more competitive entry-level and mid-range products during the period, Digitimes Research commented.Thanks to booming sales of iPhone 6 devices, international brands accounted for over 30% of total smartphone sales in China in the first quarter, with Apple taking a 16.6% share. Xiaomi Technology took the second position with an 11.5% share and Samsung Electronics followed with a 10.8% share.For the second quarter, smartphone shipments are expected to stage a rebound of 15-20% sequentially and reach around 100 million units, buoyed by the launch of new models by local brands as well as new flagship models from international brands.However, due to the maturing market in China, Xiaomi Is likely to be the sole local vendor able to ramp up its shipments to over 10 million units in the second quarter, Digitimes Research estimated.
Taiwan makers' shipments of small- to medium-size panels dropped 19.1% on quarter in the first quarter of 2015 to 288 million units and are expected to grow 12.7% on quarter in the second quarter, according to Digitimes Research.First-quarter shipments took a hit due to the time period traditionally being a slow time for makers coupled with reserve adjustments from China-based customers.Shipments for handset panels and tablet panels dropped 23.6% and 28.3% respectively in the first quarter while shipments for a-Si panels used in cameras increased 15.2%.The makers' shipments will increase 12.7% on quarter to 325 million moving into the second quarter, down 7.5% on year. The drop will come from decreased shipments for feature phones in addition to increased competition from Japan Display's (JDI) LTPS TFT LCD production advancements. China-based Tianma and BOE will also play bigger roles in the entry-level to mid-range smartphone markets.Shipments for panels used in DVD and digital frame applications will grow 16.4% and 14.5% respectively in the second quarter while those for vehicle applications will rise 14.7% as the four major Taiwan panel makers increase their customer layouts. Handset panels are expected to account for 75.1% of the makers total shipments during the quarter, with total shipments increasing 13.7% on quarter.In terms of makers, Innolux expects to see a 22.9% increase in small- to medium-size panel shipments in the second quarter due to increased orders from international vendors while HannStar Display will only see a 5.7% increase due to focusing on orders from white-box vendors, added Digitimes Research.
Shipments of smartphone-use application processors in China are expected to reach 122 million units in the second quarter of 2015, up 17.6% sequentially and 18.4% on year, according to Digitimes Research.Among the top-three AP suppliers in China, MediaTek, which saw its market share slide to 46.8% in the first quarter of 2015 due to competition from Spreadtrum Communications in the 3G segment, is expected to ramp up its share to 48.4% in the second quarter, buoyed by rising shipments of LTE and 3G products, said Digitimes Research.Although Qualcomm will see its AP shipments to China continue to increase in the second quarter, its share will decline to 21.3% in the quarter, from 23.6% a quarter earlier as the pace of its product updates was not as fast as that of MediaTek's.Spreadtrum managed to ramp up its share to 17.4% in the first quarter but is expected to see its share slip to 15.2% in the second quarter as shipments of its WCDMA solutions will be affected by the offerings from MediaTek.In terms of AP architecture, ARM's Cortex-A53 CPUs accountedfor 36.1% of total smartphone APs shipped in the China market in the first quarter, with the ratio likely to climb to 43.1% in the second quarter, Digitimes Research estimated.
Global notebook shipments are expected to stage a rebound in the second quarter of 2015, reaching a sequential growth rate of 11%, while narrowing the on-year decline rate to 1.2% compared to a 4.7% recorded in a quarter earlier, according to Digitimes Research.Strong shipments from Apple and Chromebook vendors will contribute over 50% of the second-quarter growth, with MacBook products to register a 40% sequential growth and an over 50% on-year increase. Meanwhile, Chromebook shipments are expected to record a 60% on-quarter growth and a 55% on-year gain in the second quarter.However, excluding MacBooks and Chromebooks, global notebook shipments in the second quarter will edge up only 5% sequentially, but down 8.7% on a yearly basis.Powered by the launch of 12-inch MacBook, Apple is expected to ship five million notebooks in the second quarter, enabling it to compete with Dell for the third position in the global notebook ranking. Meanwhile, Lenovo is expected to ramp up its notebook shipments by over one million units in the quarter and maintain its number one position. With regards to notebook ODMs, Quanta Computer and Compal Electronics are expected to boost their shipments by over 15% sequentially in the second quarter, while Pegatron will enjoy a 10% sequential growth. But Wistron and Inventec are likely to suffer a setback during the same period, Digitimes Research estimated.
Taiwan-based ODMs shipped 18.799 million LCD monitors worth US$2.155 billion in the first quarter of 2015, with the shipment volume dropping 15.5% on quarter and 6.5% on year. Shipment value slipped 13.8% and 1.2% respectively, according to Digitimes Research.20-inch and above models accounted for 63.1% of shipments, 18- to 19-inch 34.2%, 17-inch and 17-inch W 1.3%, 15- to 16-inch 1.4%, Digitimes Research indicated.TPV Technology was the largest ODM accounting for 54.9% of shipments, followed by Qisda with 18.4%, Foxconn Electronics 17.7%, Wistron 8.7% and Compal Electronics 0.4%.
HTC and Taiwan-based ODMs together shipped 17.6 million handsets in the first quarter of 2015, decreasing 30.3% on quarter but increasing 8.4% on year. 16.1 million units were smartphones, slipping 26.3% on quarter but rising 21.7% on year, according to Digitimes Research.WCDMA models accounted for 80.4% of the shipments, CDMA 2000 15.1% and GSM 4.5%, Digitimes Research indicated.HTC accounted for 28.4% of the shipments, followed by Foxconn Electronics and its subsidiary FIH Mobile with 20.4%, Compal Electronics 19.3%, Wistron 11.9% and Arima Communications 11.1%.
According to research conducted by the Ministry of Economic Affairs' Bureau of Energy, power consumed by motor equipment and applications account for over 50% of overall electrical power consumption. In addition, industrial motor equipment and applications account for over 70% of industrial electrical power consumption. This is why the development of motor products towards energy conservation has become a sure trend. In light of this, Tatung has developed the IE3 premium-efficiency motor.It is often said that "motor is the mother of machinery, while machinery is the mother of industry." since motors are the core part of various types of power machinery. As early as 1949 Tatung already understood the importance of motors, which is why Tatung introduced related technologies from Westinghouse of the United States and Toshiba of Japan to establish its own development capabilities in this area. In 1974, Tatung commenced operation of its factory in Sanhsia and began producing motor products using automated equipment.Today, Tatung's Sanhsia factory produces a wide range of motors, with horsepower ranging from 1/4HP to 30,000HP. The types of motors produced by Tatung include single-phase motors, three-phase motors, high voltage motors, low-pressure motors, generators, high-efficiency motors, explosion-proof motors, gear motors and speed variators, variable-frequency drive motors, elevator motors, pump motors, as well as many other types of special motors for specific applications.It is also worth mentioning that Tatung was the first motor manufacturer in Taiwan to obtain the CNS mark and has also obtained various other certifications: NEMA and UL in the United States; T MARK and JIS in Japan; CSA in Canada; the CE MARK in the European Union; GB in China; ISO-9001, ISO-14001, and OHSAS 18001-2007. In 2010, Tatung even launched the world's first motor product with carbon footprint verification, which has helped it solidify its foundation in the global market.In summary, Tatung has been developing motors for over 60 years, and its products are sold in virtually every corner of the world. Tatung also has many plans for developing motors for overseas markets going forward.According to Book Kuo, Vice Director of the Domestic Sales Division of Tatung's Motor Business Unit, "Ever since Tatung first started engaging in the motor business, efficiency has been one of its focal points. Tatung has always worked to use less material to produce higher horsepower. Today, due to trends towards energy conservation as well as carbon reduction, virtually every country is stressing the ability of motors and systems to conserve energy. This is a testament to the value of the IE3 motor or even the permanent magnet servo motor. Permanent magnet servo motors which use servo system for control are different from variable- frequency drive motors that use inverters as their basis for control. Permanent magnet servo motors have higher accuracy in terms of control and therefore are more capable of increasing efficiency in terms of energy conservation."Years of R&D has laid the foundation for the development of high-efficiency motorsBack when competitors were still focusing on IE1+, Tatung was already conducting R&D on IE3 premium-efficiency motors. In the early stages of IE3 development, Tatung was alone at the cutting edge and faced many obstacles, but it was able to overcome those obstacles. Now, countries including the United States and Japan, are making the use of IE3 motors mandatory due to energy conservation requirements. Tatung's line of IE3 products, including products that comply with or even exceed CNS14000 (version 2012) standards are fully ready to meet the needs of this unstoppable trend.Tatung's IE3 motor products have four primary characteristics, says Book Kuo. Firstly, they are "highly efficient," not only reducing process loss, but also decreasing copper and iron loss due to the use of high quality silicon steel. Secondly, they are "low magnetic flux," suppressing temperature rise as well as reducing loss by reducing magnetic flux densities. Thirdly, they have "high air volume and low-loss fans," which increase heat dissipation and reduce mechanical loss. Finally, they have "new configuration," meeting requirements concerning high strength, minimal temperature rise, and low vibration by increasing the heat-dissipation surface area and reinforcing the motor frame.In addition to high-efficiency motors, Tatung is also one of the few vendors that possess the ability to produce custom-made large high voltage motors. Kuo also says that although the horsepower range is usually between 1/4HP to 30,000HP, Tatung is capable of producing specific large motors for all kinds of operations, including desalination plants, large cement plants, and big fans and blowers applications, with even higher load requirement.There are a number of reasons why Tatung has been able to successfully develop such products. It is able to take advantage of CAE analysis in its R&D and design efforts to produce high-efficiency, high power factor, and high horsepower products, as well as products with long lifetime and optimized bearing strength structures. Furthermore, Tatung also has the largest vacuum pressure impregnation (VPI) system, which can prevent coronas at high voltages and ensure a long product life for the motor.Also, the trend towards low carbon emission and zero pollution has fueled the popularity of electric vehicles. Tatung has teamed up with research institutions (including ITRI and the Metal Industries Research & Development Center) and many vehicle manufacturers to develop EV motors. Products developed include motors for forklifts, dune buggies, pickup trucks, electric yachts, and electric buses. These products are already in production and available on the market, and there have already been orders for them.According to Kuo, Tatung's motor business is based in Taiwan and is actively promoting its visibility globally by participating in trade shows and exhibitions. Tatung has established operations with local partners in Thailand, Malaysia, Canada, and Europe, and has established branches in Singapore, Japan, and the United States to expand its business. Tatung has also established strategic alliances with maintenance plants in India in order to expand its post-sales services there and is actively pursuing related certifications in the Middle East. Furthermore, Tatung is also planning to establish sales locations in Saudi Arabia in hopes that the products of its successful R&D efforts can be exported overseas so that they can be enjoyed by people all over the world.