DIGITIMES: IT news from Asia

Highlights of the day: YMTC said to enter SSD brand business

DIGITIMES — Fri, 5 Jun 2020 08:25:06 GMT

China-based NAND flash maker YMTC reportedly is looking to cross into brand SSD business in the third quarter and will focus on supplying the devices to PC makers. Meanwhile, Apple's new iPhones using OLED panels for 2021 may adopt LTPO backplane in order to reduce their power consumption. With Huawei under the US' new sanctions, Taiwan's IC substrate makers have begun turning to strife for more orders from other clients particularly those in the US.

Passive components makers report impressive May results

Willis Ke — Fri, 5 Jun 2020 08:00:25 GMT

Passive components makers have reported significant sales results for May despite the long Labor Day holiday in China cutting work hours, with Yageo's revenues of NT$4.486 billion (US$149.53 million) for the month rising 1% sequentially and almost 40% on year, according to industry sources.

Taiwan to attract international firms R&D of next-generation technologies

Adam Hwang — Fri, 5 Jun 2020 07:55:38 GMT

Ministry of Economic Affairs (MOEA) on June 4 unveiled a Pilot Enterprise R&D and Cultivation program in a bid to attract international enterprises to partner with local ones for joint investment in R&D of next-generation technologies and cultivation of talent in Taiwan via government subsidization, according to vice minister Chuan-neng Lin.

Sony Mobile Xperia 1 II 5G phone makes debut in Taiwan

Steve Shen — Fri, 5 Jun 2020 07:38:08 GMT

Sony Mobile Communications has launched its first 5G-enabled smartphone, the Xperia 1 II, in the Taiwan market, capitalizing on the official kick-off of 5G commercial services in the local market set in July.

IC substrate makers shifting focus to US clients from Huawei

Willis Ke — Fri, 5 Jun 2020 07:35:23 GMT

Taiwan-based IC substrate makers including Unimicron Technology and Na Ya PCB are gearing up to strengthen business ties with US clients seeking to offset expected losses of orders from China's Huawei/Hisilicon subject to tougher US trade sanctions starting September, according to industry sources.

Worldwide Ethernet switch and router markets decline in 1Q20, says IDC

DIGITIMES — Fri, 5 Jun 2020 07:25:19 GMT

The worldwide Ethernet switch market recorded US$6.16 billion in revenues in the first quarter of 2020, a decrease of 8.9% on year. Meanwhile, the worldwide total enterprise and service provider (SP) router market revenues fell 16.4% on year in the first quarter of 2020 to US$2.99 billion, according to IDC.

APT Electronics gives up IPO on SSE Star Market

Adam Hwang — Fri, 5 Jun 2020 07:05:32 GMT

China-based LED packaging service provider APT Electronics has withdrawn its application for IPO on Shanghai Stock Exchange's (SSE) Sci-Tech Innovation board six months after it submitted the application, according to industry sources.

YMTC may unveil own-brand SSDs in 3Q20

Willis Ke — Fri, 5 Jun 2020 06:51:03 GMT

China-based Yangtze Memory Technologies (YMTC) reportedly will in third-quarter 2020 launch its own-brand SSDs adopting in-house-developed 64-layer 3D NAND flash, with target outlets including PC OEMs, according to industry sources.

Chinese IC firms listed on SSE tech board may become new targets for US sanctions

Willis Ke — Fri, 5 Jun 2020 06:36:30 GMT

Many China's major semiconductor firms are rushing to raise funds from the Sci-Tech Innovation Board of the Shanghai Stock Exchange (SSE) to support their development of advanced chips design and manufacturing technologies, but they are likely to become new targets for trade sanctions by the US once they grow fast to threaten American suppliers or become able to control Chinese semiconductor sector, according to Taiwan semiconductor supply chain sources.

Taiwan 5G phone penetration expected at 10% in 2020

Steve Shen — Fri, 5 Jun 2020 06:09:42 GMT

As 5G commercial services are not expected to launch in Taiwan until July, 5G smartphones' penetration rate in the local market is expected to reach only 10% in 2020, according to Jonathan Lin, general manager of Sony Mobile Taiwan.

FitTech expects demand for mini LED probing, testing, sorting services to take off in 4Q20

Adam Hwang — Fri, 5 Jun 2020 04:12:06 GMT

LED equipment maker FitTech expects its mini LED probing, testing and sorting services on an OEM basis to see demand beginning the fourth quarter of 2020 with demand to increase further in 2021, according to the company.

Global education sector to see rising Chromebook demand in 2020, says Digitimes Research

DIGITIMES — Fri, 5 Jun 2020 03:51:35 GMT

As most schools worldwide have begun adopting online learning in the wake of the coronavirus pandemic, demand for mobile computing devices from many country's K-12 education sectors has been rising with Chromebooks currently seeing the highest shipments, according to Digitimes Research.

Virtual banks to go online in Taiwan in 2H20

Adam Hwang — Fri, 5 Jun 2020 03:34:44 GMT

Next Bank, Line Bank and Rakuten International Commercial Bank, the first three virtual banks approved by Taiwan's Financial Supervisory Commission (FSC) in late July 2019, are expected to kick off operation in the third or fourth quarter of 2020, according to industry sources.

Supermicro unscathed by virus, while gearing up for 5G boom

Steve Shen — Fri, 5 Jun 2020 03:22:47 GMT

Supermicro, a major provider of servers, storage and networking solutions, has seen its business unscathed by the coronavirus pandemic, and is doubling down its efforts to prepare gears for the upcoming 5G opportunities, according to company president and CEO Charles Liang.

OLED screens of iPhones may adopt LTPO backplanes in 2021, say sources

Steve Shen — Fri, 5 Jun 2020 03:14:51 GMT

Apple has yet to introduce its 5G iPhones for 2020, but its supply chain is already developing OLED screens using LTPO (low temperature polycrystalline oxide) backplane technology for next year's premium iPhone models, according industry sources.

Highlights of the day: Taiwan becoming new server manufacturing center

DIGITIMES — Thu, 4 Jun 2020 08:17:32 GMT

As more server makers and brands are relocating production lines from China to Taiwan or establishing new manufacturing facilities in the market, Taiwan's role in the server industry has grown more important. Meanwhile, the uprising demand for datacenter servers will continue benefiting Taiwan-based PCB makers in the second half of 2020 despite the upstream supply chain rumor about witnessing datacenter clients decelerating their order pull-ins. Memory ASPs have been declining throughout the second quarter and may have a chance to resume growth in the fourth quarter.

Notebook PCB makers to see tight capacity through 3Q20

Willis Ke — Thu, 4 Jun 2020 07:48:47 GMT

Taiwan's makers of rigid boards for notebooks will see their production lines continue running at full capacity through the third quarter of the year, as they have many orders in hands waiting to be fulfilled, according to industry sources.

TEEIA urges government to push development of semiconductor equipment

Adam Hwang — Thu, 4 Jun 2020 07:43:00 GMT

Taiwan Electronic Equipment Industry Association (TEEIA), viewing that South Korea, Japan, China and the US have treated development of semiconductor equipment as a national-level strategic industry, urges that the Taiwan government do the same through taking several promoting measures.

Memory ASPs falling in 2Q20, likely to rebound in 4Q20

Willis Ke — Thu, 4 Jun 2020 07:31:17 GMT

Overall ASPs for memory are trending downwards in the second quarter of 2020 along with spot market price falls despite rises in contract prices, but they are expected to resume growth momentum in the fourth quarter of the year, according to Gerry Chen, general manager of memory modules maker Team Group.

CHPT sees demand for IC testing solutions to peak in 2Q-3Q 2020

Steve Shen — Thu, 4 Jun 2020 07:12:57 GMT

IC testing interfaces provider Chunghwa Precision Test Technology (CHPT) expects its sales for 2020 to peak in second- to third-quarter on rising demand for high-end testing interfaces and related tools driven by evolving advanced IC packaging technologies that come along with the heterogeneous integration of 5G mobile chips, according to company president Scott Huang.

Will TSMC cut capex on Huawei woes?

Willis Ke — Thu, 4 Jun 2020 07:04:26 GMT

TSMC's 2020 business performance is facing mounting uncertainties over new US trade sanctions against Huawei, fueling market speculations about whether the foundry giant will revise downward its capital expenses for 2020 or even 2021.

Bright LED Electronics poised to ship UV-C LED devices

Adam Hwang — Thu, 4 Jun 2020 06:41:12 GMT

LED packaging service provider Bright LED Electronics has been in the process of certification for many models of UV(ultraviolet)-C LED devices used in disinfection and expects shipments to start in the second half of 2020, according to the company.

Taiwan emerging as new server manufacturing hub

Willis Ke — Thu, 4 Jun 2020 06:26:12 GMT

Taiwan is set to become a new manufacturing hub for servers, as Supermicro, Quanta Computer, Wiwynn and others as well as related components makers are fast expanding production capacity to meet growing demand from datacenters and enterprises, according to supply chain sources.

Taiwan PCB makers may penetrate into iPhone supply chain via BOE

Joseph Tsai — Thu, 4 Jun 2020 06:09:23 GMT

China-based panel maker BOE reportedly will become an OLED panel supplier for Apple's 5G iPhones in addition to Samsung Display and LG Display, giving Taiwan-based PCB makers a chance to penetrating into the iPhone supply chain, according to sources from the upstream supply chain.

Epistar charges Lowe's for infringement of LED filament lighting technology

Adam Hwang — Thu, 4 Jun 2020 04:01:19 GMT

Epistar has filed a charge with a US District Court against US-based Lowe's Home Center and Lowe's Companies (collectively as Lowe's) for infringing on its five US patents concerning LED filament lighting technologies, according to the company.

Taiwan issues first 5G license

Steve Shen — Thu, 4 Jun 2020 03:50:32 GMT

Taiwan has issued its first 5G commercial license to Chunghwa Telecom (CHT), which is expected to officially launch 5G services in July.

Samsung Display, LG Display remain top-2 panel makers in 1Q20, says Digitimes Research

DIGITIMES — Thu, 4 Jun 2020 03:29:25 GMT

Samsung Display and LG Display remained the global top-two panel makers in the first quarter of 2020 in terms of sales value, although the Korean makers have begun to scale down their LCD panel capacities, Digitimes Research has found.

PCB orders for datacenter servers to stay robust in 3Q20

Joseph Tsai — Thu, 4 Jun 2020 03:23:08 GMT

In response to the upstream supply chain rumor claimed that several key datacenter players have slowed down the pull-ins of their server component order recently, sources from PCB makers said that they have not seen any deceleration in orders from datacenter clients for the third quarter of 2020.

Global shipments of AR/VR headsets to surge 29% in 2020, says Digitimes Research

DIGITIMES — Thu, 4 Jun 2020 03:07:04 GMT

Global shipments of AR/VR headsets are expected to surge 29% on year in 2020, driven by rapidly growing demand for such gears for consumer and commercial applications to support remote work and study activities in the wake of the coronavirus pandemic, according to Digitimes Research.

Auto power module and leadframe shipments to pick up in 4Q20

Joseph Tsai — Thu, 4 Jun 2020 03:01:13 GMT

Demand for power modules and module leadframes used in automotive and industrial control applications is expected to surge in the fourth quarter with shipments in the third quarter to stay flat sequentially, according to sources from the related supply chain.

SMIC in no position to challenge TSMC, Samsung in next 5 years

Willis Ke — Wed, 3 Jun 2020 07:35:27 GMT

China's major homegrown foundry Semiconductor Manufacturing International Corp (SMIC) is gearing up to raise funds to support its development of advanced manufacturing nodes, but industry observers believe that the company will be in no position in the next five years to challenge TSMC and Samsung Electronics, which together command 70% of the global foundry market.

Yageo obtains massive loan

Joseph Tsai — Wed, 3 Jun 2020 07:03:04 GMT

Yageo has obtained a 5-year syndicated loan of NT$48.5 billion (US$1.6 billion), an amount nearly 60% higher than the company's original expectation, from banks and will use the fund to acquire US-based capacitor maker Kemet and in its future operation.

Highlights of the day: PS5 supply chain remains upbeat

DIGITIMES — Wed, 3 Jun 2020 06:57:22 GMT

Sony has postponed the launch of PS5, but makers in its supply chain remain busy preparing shipments for the client's next-generation games console. Backend partners say SoC shipments for PS5 will start next week before peaking in third-quarter 2020. PCB and IC substrate suppliers expect PS5 to be a major growth driver of the sales this year. Meanwhile, cloud server suppliers expect demand to remain robust throughout 2020, probably lasting into 2021, thanks to growing stay-at-home economy in the wake of the COVID-19 lockdowns.

Inventory management important before production relocation completes

Adam Hwang — Wed, 3 Jun 2020 06:42:21 GMT

Taiwanese supply chain makers, to cope with the US-China trade disputes and coronavirus pandemic, must carefully manage their inventory before completing production relocations from China to Taiwan or other countries, according to Richard Lee, chairman of Taiwan Electrical and Electronic Manufacturers' Association (TEEMA).

Elan reports record sales on growing touchscreen chip shipments

Steve Shen — Wed, 3 Jun 2020 06:29:34 GMT

Elan Microelectronics, which supplies touchscreen controllers, touchpad modules, stylus chips and fingerprint sensors for IT and mobile applications, has reported record-high sales for May, bolstered by strong demand from major notebook brands ramping up enterprise PC shipments to support work-from-home activities.