Taiwan-based makers shipped only 6.26 million LCD TVs globally in the first quarter of 2021, down 34.2% sequentially, due mainly to shortages of panels, display driver ICs and SoC chips, Digitimes Research has found.For the second quarter of 2021, TV shipments by Taiwanese makers are likely to slide by 8.3% sequentially and 8.6% on year as the tight supply of crucial components and materials is not to ease, and the shipment momentum will remain weak amid seasonal factors.Looking back at the first quarter, the ratio of Taiwan's TV shipments to the North American market fell to 40.6% from 49.5% seen a quarter earlier, and that for the Europe-bound shipments increased slightly, Digitimes Research said.TPV Technology, Foxconn Technology, Amtran Technology and Innolux were the top-four Taiwanese TV suppliers in the first quarter.Shipments of over 50-inch TVs accounted for 45.1% of Taiwan's total TV shipments in the first quarter, and the ratio for those sized 32- to 39-inch dropped to 23.7% from 28%. Meanwhile, the proportion of 4K models declined to 47.7% in the quarter.

Intel's overall sales for first-quarter 2021 were flat but revenues from its datacenter business dropped 20% on year, seriously undermining the chip giant's profitability. Intel has now released its third-generation 10nm Xeon datacenter processors codenamed Ice Lake to bolster its market leadership. The release of the new processors is expected to trigger a wave of replacement demand, and server ODMs are looking forward to double-digit growths in shipments in second-quarter 2021. Meanwhile, MCU supplier Holtek has disclosed its dlivery lead times have stretched to more than six months due to tight supply at foundry and backend houses.Intel to defend market share with new 10nm server chips: Intel with its new-generation 10nm server chips will be striving to defend its market dominance.Server ODMs expect double-digit shipment growth in 2Q21: ODMs including Quanta Computer and Wiwynn will see their shipments for servers register double-digit sequential increases in the second quarter of 2021, according to industry sources.Delivery lead times for MCUs prolonged to over 6 months, says Holtek: Delivery lead times for MCUs have been prolonged to more than six months due to tight capacity at foundry fabs and IC backend service providers, according to Armstrong Tsai, vice president of Holtek Semiconductor.

In this 5G era, diverse environments have led communications systems and equipment suppliers to find different development opportunities. Also, as private business network applications gradually lean towards white-box and intelligent products, networks communications and electronic manufacturing companies in Taiwan are entering the information and communication technology field to compete for opportunities in equipment for 5G terminals, base stations, private business networks, core networks, or cloud datacenters.As high-speed data transmission enhanced the performance of processors, heat dissipator designs also improved greatly and pushed the thermal module market to grow many-fold. Intel and AMD multicore processors, for instance, contain additional units crammed into smaller sizes, so challenges for heat dissipation design have skyrocketed. Ricky Yu, Product Consultant Deputy Manager at T-Global, stated in our interview that with 5G communications initiating large-scale business transformation, the IoT and base station equipment supporting 5G technology will have increased heat sources and generate enormous opportunities for heat dissipation solution providers.Heat dissipation starts with conduction, and TIM is the keyT-Global started as a materials supplier. Thermal interface material (TIM) is mainly used to fill in microvoids between jointed materials and pores on object surfaces in order to reduce contact thermal resistance.Yu explained that heat dissipation begins with heat conduction, so by supplying materials like thermal tape and thermal grease, T-Global quickly became an important link in the electronics ecosystem. The company integrates different heat dissipation technology, combining them into customized solutions or even exclusive features for client products, which are then patented by the client to improve the product's competitiveness.T-Global knows their heat dissipation and conduction technologies. For example, thermal grease contains volatile silicone oil and has limited warranty periods, so for professional industrial computers and systems requiring 3, 5, or up to 10 years lifespan, development and wide application of thermally conductive silicone sheets have become the next trend.Based with metallic oxides such as aluminum oxide, thermal-conductive powders such as boron oxide, and silicone, the product has good heat conductivity, low thermal resistance, and withstands electrical voltage. It performs a variety of functions by reinforcement with different materials, and, being highly customizable, is highly adaptable in a wide range of scenarios according to the client's heat source wattage, target temperature, and thermal dissipation area. Therefore, it is greatly valued in the industry.By continuously building up practice in different areas, T-Global's engineering team participates in design and service to understand client needs and to raise precise proposals. The current main objective is to apply varied technologies with good integration plans, so that as the market grows rapidly, T-Global may transform into a heat dissipation solution provider and take off on enhanced business. With the widespread use of smart devices and the surge of IoT applications in everyday life, lightweight small electronics are in huge demand and their heat dissipator designs need to keep up with the times.Heat pipe and vapor chamber technologies each have their advantagesToday, metal heat pipe and vapor chamber technologies have leapt to front page. Ultra-thin heat pipes and vapor chambers both have nearly hundred-fold the heat dissipation performance of pure aluminum, and heat pipe technology is already mature. In the past year, the cost of raw materials like copper has risen, and to help clients face impacts caused by pandemic-related raw material price fluctuations, T-Global endeavored to respond with innovative developments that balances lacking resources with those plentiful, thus reducing cost burdens for clients and proactively addressing designs like server rooms that rely mainly on fans, cooling fins, and heat pipe technology.Furthermore, Yu points out, with the growth of 5G base stations and subsequent high-speed gateways going strong, business in vapor chambers has increased rapidly in the past 5 years, and future development opportunities are also increasing. Outdoor 5G base stations, for example, require waterproof and dustproof designing for the outdoor infrastructure and devices. As the specialized sealed design permits no ventilation, TIM specifications are the key to success.Heat dissipation performance with 3 or 4 mm vapor chambers is good, but there is still much room for improvement. T-Global uses ultra-thin vapor chambers that are less than 0.4 mm, and developed the first TIM in the market with over 18 W/m.K. Vapor chambers are quickly becoming the new favorite, but they require up to 2.5 times the cost of heat pipes, and its production yield has always been a formidable challenge, so they are the center of attention for market competition.High investments in software and testing equipment help clients avoid failure5G base stations for high-speed data transmission as well as automotive control systems containing sensors and cameras with IoV and numerous devices are becoming increasingly large heat sources, and the number of heat dissipation cases for 250 W and up have surged. To create optimal designs that address performance and cost, diverse heat dissipation combinations including advanced technology such as vapor chambers are in high demand and require comprehensive designing and testing support.From obtaining reliable high-quality ceramic powder and recipes from Japan or Europe, to providing thermal modules and solutions, T-Global has it all down to a T, and it all comes from the practical and designing experience accumulated over a long time. Yu explains using a computer thermal module as an example: the polished metal surfaces of the aluminum base and cooling fin seem to be closely joined against each other, but research reports that the effective thermal conductive area between to two is 10% or less, while up to 90% of heat is accumulated on the metal surfaces. So the design and modeling of each and every heat removal solution are extremely important starting points.Based on equipment differences in heat dissipation requirement and its overall environment, complex system parameters and specifications need to be considered, and a complete design model must be made with professional heat transfer analysis software. Costly software including Flotherm XT was purchased to create key design profiles and architecture to reduce designing time greatly.T-Global runs actual tests simultaneously with lab machines and a testing chamber to verify engineering designs and save clients a great deal of developing time and costs. The company also offers multiple design proposals and helps the supply chain prepare early for the end client's future product designs.T-Global's clients now extend across industrial computer, automotive electronics, NB, display panel, smart LED lighting, networks and communication system, and IoT industries. For the next stage, the 5G application, electrical cell, power storage, and electric vehicle industries are important links that T-Global will actively involve in its supply chain. The company will help clients avoid unsuccessful trials, and create continuous opportunities.MIT engineering team that collects practical experience in different areasDiverse thermal conductive materials and productsVapor chambers have quickly become a favorite in the industry

The crytopmining fever is sweeping across China where miners are buying out all large-capacity SSDs available on the spot market ahead of the start of trading of the new crypto coin Chia. Supply of SSDs has been constrained by shortage of controller ICs. NAND flash device controller and module supplier Phison Electronics recently has raised its product prices again. Meanwhile, Taiwan's top LCD panel makers, AUO and Innolux, are optimistic about miniLED applications.Cryptomining demand for large-capacity SSDs surges in China: China-based cryptomining hardware makers are "panic buying" all the available large-capacity SSDs from the spot market, according to industry sources.Phison hikes chip prices again: NAND flash device controller and module supplier Phison Electronics has raised its quotes for the second time this year to reflect rising foundry and backend costs, as well as costs of IC substrates and other related chip components, according to industry sources.AUO, Innolux optimistic about miniLED backlighting: Taiwan's top LCD makers believe Apple's adopting miniLED backlighting for the 12.9-inch iPad Pro will encourage other device vendors to follow suit, spurring demand for such applications.

Taiwan stands a good chance of becoming a global top-3 exporter of machine tools in the next 7-10 years, up from its current foruth place, according to chairman Jimmy Chu for machine tool maker Fair Friend Enterprise.In terms of machine tool output value, Taiwan may climb from seventh place globally to the top-five group, Chu said.In line with increasing use of green energy in manufacturing, design in components of machine tools has to be adjusted, leading to demand for newly-developed machine tools, Chu noted.Taiwan's ICT capability gives it competitiveness in developing an ecosystem supporting electric vehicles (EVs), Chu indicated. Taiwan-produced machine tools fall between mid-range and high-end ones technologically speaking, and can cater to EV components production, Chu said.

TSMC has allocated a budget of almost of US$3 billion for expanding capacity of mature process technology. But until the capacity comes on line, mature process capacity will remain tight throught at least year-end 2022. Tight foundry capacity, along with rising quotes for fab services and materials, has been disrupting order placements by IC designers. MCU vendor Holtek has recently stopped taking orders from clients for 2022 until it gets a clearer picture of the size of foundry support it will get. The EV market is picking up momentum fast. Taiwan-based electric scooter vendor, Gogoro, which has seen significant success in the local market, is entering India by striking up a partnership with Hero MotoCorp.TSMC to expand capacity for 28nm process at China fab: TSMC's board of directors has approved a budget of about US$2.89 billion for installation of mature technology capacity, the pure-play foundry announced on April 22.Holtek reportedly stops taking orders for 2022: MCU firm Holtek Semiconductor has notified its distributors and major clients that the company will not take orders for 2022 until it has completed negotiations with foundries about capacity allocation, according to industry sources.Gogoro taps India market via partnership with Hero MotoCorp: Taiwan-based electric scooter vendor Gogoro has announced a strategic partnership with India-based Hero MotoCorp for setting up a joint venture to operate battery-swapping Gogoro Network and develop electric motorcycles and scooters for sale in India.

Strong demand from major clients has prompted TSMC to raise its output from its 5nm manufacturing process. The pure-play foundry house is expected to process up to 150,000 wafers monthly at the 5nm node through the end of the year. Morris Chang considers Samsung a strong competitor of the company he founded, but is skeptical about Intel's bid to expand its presence in the foundry sector. Apple has just unveiled its new miniLED-backlit iPad Pro devices powered by M1 chip. Shipments for the new devices are expected to reach 11 million units in 2021.TSMC stepping up 5nm chip output: TSMC will be stepping up its 5nm chip output, scaling it up to as much as 150,000 wafers monthly starting in the second quarter through the end of this year, according to industry sources.Samsung remains formidable competitor for TSMC, says Morris Chang: Samsung Electronics is still a formidable competitor for TSMC, according to Morris Chang, founder of the world's largest pure-play foundry.New-gen iPad Pro shipments to peak in 3Q21: Shipments of Apple's just-unveiled miniLED-backlit iPad Pro will peak for 2021 in the third quarter, according to industry sources.

As the US-China trade war continues to exacerbate tensions between the countries, the formulation of a clean supply chain - whereby the manufacturing, assembly, testing, and packaging of products all take place in Taiwan - has become an important national security and economic strategy for the United States. Over the past 30 years, Taiwan has built a complete semiconductor industry chain that provides global customers with advanced manufacturing and R&D support. In light of this, Martin Lin, marketing director at Macronix, says that now is the time for Taiwanese industry players to continue actively expanding their business layout and take the initiative to wield their competitive advantages.To address the needs of its immense domestic market, over the past few years China has created a red supply chain that has become a formidable presence for all industries across the globe. Multinational companies, including those from Taiwan, have set up production sites in China, and the global economy is becoming increasingly dependent on the mainland. Circumstances have drastically changed, however, following the United States' launch of the trade war in 2018. As Lin indicates, at the time, the Trump administration made all-out efforts to promote its clean supply chain policy in 2020 to maintain the US's dominating position in technology and economy. In particular, the two most important actions taken were to tighten export restrictions on China's major technology companies and to prohibit the export of key semiconductor-manufacturing equipment to China. These two policies have prompted major technology companies in various countries to shift their focus to resources outside of mainland China, a move that has in turn shifted the spotlight to Taiwan where the semiconductor industry chain has become increasingly mature over the past few decades.Taiwan began developing its semiconductor industry in the 1980s. Some semiconductor manufacturers began focusing on optimizing the manufacturing process after assuming their roles as OEM wafer manufacturers, while others focused on the research and development of proprietary products, such as memory market leader Macronix. Apart from continuing to invest in R&D and manufacturing technology, the company has also formulated a complete product layout. European and American companies, on the other hand, focus on IC design, contributing to the division of labor in the semiconductor industry of which Taiwan plays a crucial part and to an industry that has been flourishing for 30 years.As manufacturing processes continue to evolve, the demand for capital and technology in semiconductor manufacturing is rapidly increasing. As such, semiconductor manufacturing has become one of the world's most advanced and sophisticated industries. In addition to semiconductor manufacturing, IC design, packaging, testing, and assembly are of equal importance. Based on current industry conditions, Taiwan's semiconductor supply chain is able to provide complete, vertically and horizontally integrated services within an area of just 36,000 square kilometers, and it is this advantage that enables Taiwan to play a significant role in the clean supply chain.Lin states that Taiwan's semiconductor industry chain has three advantages in terms of its role in the clean supply chain. First, IC design, manufacturing, packaging and testing, along with other semiconductor manufacturing processes, have already formed an industrial cluster in Taiwan. As such, suppliers are not only technologically advanced but also have sufficient production capacity. Second, Taiwanese industry players have always remained closely aligned with the international community and are, therefore, not only familiar with the rules of the game but have also established trusting, cooperative relationships with customers. Last but not least, they are able ensure compliance with the conditions and requirements of a clean supply chain. In view of these three advantages, therefore, Taiwan is perfectly poised to become a safe and reliable partner for industries across the globe.Even with these apparent advantages, however, Lin believes that Taiwanese companies must strengthen their product layout so as to further expand their niche, citing as an example the trend of "intelligentization" that has emerged in recent years. In the past, products manufactured by the electronics industry were primarily used in computer, communication and consumer - also known in Taiwan as 3C - products. With the advent of intelligentization, however, the application of semiconductor components began to diversify. Market needs such as in the industrial, medical and automotive segments gradually emerged, and the types of components required by these markets became so diverse that only manufacturers with complete product lines can satisfy supply. Macronix, for instance, has a comprehensive line of memory products that offers customers a full range of solutions and services that is rare within the industry.Lin said that, in the past, product R&D conducted by memory manufacturers were mostly oriented toward the optimization of compatibility. Macronix, however, adopted a different strategy by choosing to provide differentiated design services that fulfill the needs of leading chip manufacturers in the industry and create the most suitable product solutions for different fields of application. Under this strategy, Macronix was able to forge an even more complete product line layout, particularly with regard to its two main product lines, NOR Flash and SLC NAND, offering customers corresponding products ranging from the most basic to the most advanced specifications. In terms of manufacturing processes, Macronix's NOR Flash is manufactured using a 55-nanometer process that will be upgraded to 45-nanometer. SLC NAND, on the other hand, is produced using a 19-nanometer process and has also entered mass production. The company's 48-layer 3D NAND Flash is also ready to be launched and will be joining Macronix's line of memory products to better meet diverse customer needs.In addition to the complete product line, Lin pointed out that non-consumer applications, such as automotive electronics, industrial control, medical systems, and other applications have stringent requirements for product reliability. To remain competitive in this supply chain, advanced technology is a prerequisite, not an advantage, while unwavering quality and long-term stable supply capabilities are additional keys to success. Macronix, as a manufacturer fulfilling all of the above three criteria, has long been affirmed by customers in this field with whom the company has established profound partnerships.As competition between the United States and China grows stiffer, calls for the establishment of a clean supply chain has also become more urgent. Under these circumstances, Lin foresees that, with its advanced and complete semiconductor industry cluster, Taiwan will play an important role within the global clean supply chain. As such, industry players should grasp this golden opportunity to formulate development strategies that maximize and fully exert their advantages.Martin Lin, Marketing Director, Macronix

Taiwan-based pure-play foundry house UMC has told clients that it will raise manufacturing quotes in 2022. Some mature segments at UMC will see at least a 40% rise in foundry quotes. Some IC designers, such as Phison and Silicon Motion, who are keen on securing supply, have already placed orders with their foundry partners for 2022. Singapore is well-known for its service and finance sectors, but it has ambitions to play a bigger role in manufacturing in Southeast Asia. Yip Wei Kiat, Singapore's trade representative in Taipei, told Digitimes in a recent interview how his country can be a gateway for manfacturers seeking to invest in ASEAN.UMC plans 40% price hike in 2022: United Microelectronics (UMC) is negotiating contracts for next year, when the pure-play foundry plans to initiate another price hikes, according to sources at IC design houses.Phison, Silicon Motion place NAND controller foundry orders for 2022: NAND flash controller specialists Phison Electronics and Silicon Motion Technology have placed orders for 2022 with their foundry partners, but are still aware tight mature process capacity may disrupt their shipments next year, according to industry sources.Singapore can be springboard into ASEAN, says Singaporean trade representative in Taipei: Singapore is well-known for its services and finance sectors, but there is much more to the economy of the Southeast Asian country, which is keen on expanding its manufacturing and can be a gateway for Taiwanese firms looking to establish a foothold in the region.

Singapore is well-known for its services and finance sectors, but there is much more to the economy of the Southeast Asian country, which is keen on expanding its manufacturing and can be a gateway for Taiwanese firms looking to establish a foothold in the region.Yip Wei Kiat, Singapore's trade representative in Taipei, told Digitimes in a recent interview that his country is seeking to maintain its manufacturing at over 20% as a proportion of the country's GDP.In line with that goal, Singapore is looking to grow its manufacturing output by 50% over the next 10 years. Singapore is looking at manufacturing sectors, such as bioteh pharmaceuticals, that are capital intensive with highly automated production lines.Singapore is not only seeking to expand its own manfacturing sector, but also to play a bigger role in manufacturing in ASEAN, which, for its member states, is "one community" as far as economic develpment is concerned, according to Yip.Earlier this year, the country announced the formation of the Southeast Asia Manufacturing Alliance (SMA), a tripartite agreement between its Economic Development Board (EDB), Enterprise Singapore (ESG) and private sector partners to help manufacturers set up their operations in industrial parks in both Singapore and the region.Many Taiwanese companies have been keen on the setting up manufacturing plants in Southeast Asia - a move that has been accelerated by the US-China trade tensions.It may be too costly for manufacturers to set up plants in Singapore, but Ip thinks his country is in a good position to help."We can help Taiwanese companies to expand their presence in ASEAN," said Yip.He noted that Taiwanese companies looking to invest in ASEAN can leverage the network and experience that SMA offers, as a lot of Singaporean companies have a presence in other ASEAN countries and they know well the local cultures and ways of doing business - which would be a great help for Taiwanese investors.Singapore has maintained tight trade relationships with Taiwan over the years. Singapore is one of the few countries that have signed free trade agreements (FTA) with Taiwan, and bilateral trade has reached about US$50 billion, with electronics accounting for most of the exports from Singapore to Taiwan, many of whose IT firms have set up R&D and distribution hubs in the Southeast Asian country.Singapore may not be as strong as Taiwan in terms manufacturing in the IT manufacturing sector, but it does have a sizeable semiconductor industry. Taiwan-based pure-play foundry UMC has a fab in Singapore, and VIS not long ago took over a wafer fab from Globalfoundries there. And SSMC, a joint venture between TSMC and NXP, is just across the road from the UMC fab.Singapore will continue to develop its semiconductor industry though it has no intention to challenge Taiwan's leadership, according to Joshua Lim, EDB's regional director, Taiwan, who accompanied Yip during the interview.Lim said Singapore will focus on mature and special-purpose semiconductors, where shortages are most acute. Such semiconductor applications are focused on 5G high-frequency communications and power electronics required for electric vehicles (EV).Special chemicals such as plasticizers, UV absorbers, polypropylene for masks and isopropyl alcohol for disinfectants, and biotech pharmaceuticals are also industries that Singapore is promoting investment in because they are highly automated and capital intensive.At the end of 2020, the Singapore government announced a SGD25 billion (US$18.81 billion) research and innovation fund over the next five years - the Research, Innovation and Enterprise (RIE) 2025 program, - which has focuses on various areas, such as heterogeneous integration of semiconductor packaging technologies, power electronics and specialty materials such as silicon carbide and gallium nitride.Yip said that Singapore hopes to have closer cooperation with Taiwan enterprises in innovation, R&D and technology upgrade, and is communicating with Taiwan to explore ways to cooperate in innovation and digital transformation in the post-epidemic era. Singapore's research institutions and universities have invested many resources in advanced manufacturing R&D and production innovation, and can be a strong partner for Taiwanese companies, he said.Lim added that the Singaporean government will do a lot of communication with the industry when making investments to collect feedback and proposals to ensure that the government's investments are in line with the industry's R&D and commercialization roadmap for the next five or 10 years.Taiwanese companies can also use Singapore as a test market for their products and services, as consumers in many Southeast Asian countries have a very positive and high opinion of Singapore's products and services, so if products sell well in Singapore, they often follow suit in other Southeast Asian markets, Lim said.Yip Wei Kiat, Singapore's trade representative in TaipeiJoshua Lim, regional director, Taiwan, for Singapore's Economic Development BoardPhotos: Liu Kuo-tai, special to Digitimes, March 2021