Taiwan-based network device makers including Zyxel Group and Sercomm continue to see telecom customers engaged in inventory adjustments and remain cautious about their operations in the second half of this year, according to company sources.
According to Huawei's latest earnings report for the first half of 2023, the US-sanctioned telecom equipment giant reported sales of CNY310.9 billion, up 3.1% from a year ago, with net income reaching CNY46.63, a 209% growth year-on-year.
After trying to attract Tesla's investment for a long time, Indonesia seems to have made some progress. Senior minister Luhut Pandjaitan said the EV giant is considering investing in lithium battery materials in the country and will announce the plan in the following months.
According to reports from ZDNet Korea and official statements from Samsung, Samsung plans to launch the latest version of its 5G vRAN software technology, vRAN 3.0, within 2023. As part of Samsung's vRAN collaboration with Intel, This software will provide optimization processing for the Intel vRAN Boost in the 4th generation Intel Xeon processors.
Taiwan-based magnetic component company LinkCom Manufacturing held an earnings call on August 11. General manager Wilson Tan said the company is expanding its magnetic component and wireless charging units. The company will launch new products, increase product applications and scale up its global business simultaneously.
China's Saiwei Electronics has announced sucessful mass production and "domestic substitution" of Bulk Acoustic Wave (BAW) filters. While the industry remains conservative about the immediate integration of these filters into 5G smartphones, this breakthrough resolves China's long-standing "chokepoint" when it comes to RF (Radio Frequency) module supply, and further fuels speculation about the return of Huawei 5G smartphones.
Major networking chip manufacturers have been holding earnings calls to discuss the global market situation of telecommunications tenders. As China accelerates its efforts in the commercialization of 5G, telecom tenders have garnered the attention of the market. IC distributors stated that telecom projects in China will be subdued in the second half of 2023, with Wi-Fi 6 as the majority. Wi-Fi 7 may only be gradually adopted by the market in 2024.
Samsung Electronics has announced the expansion of its collaboration with Intel via a new product innovation agreement, enabling the companies to continue advancing virtualized radio access network (vRAN) for improved performance and capacity.
The outlook for demand from new telecommunication tenders and bids in the second half of 2023 remains uncertain, prompting related chip suppliers to exercise caution and anticipate a demand uptick in 2024, according to sources at Taiwan-based IC design houses.
Typhoon Doksuri has brought heavy rainfall to northern China over the past two weeks, causing at least 20 deaths and affecting millions stuck in the resultant floods in the suburban areas south of Beijing. But the same typhoon only caused relatively minor damage of NTD230 million (US$7.41 million) to Taiwan, thanks to the Taiwan government's decisive preparedness measures based on the monitoring information provided by the Civil IoT Taiwan platform.
Asia Pacific spending on the Internet of things (IoT) is forecasted to be US$277.5 billion in 2023, an increase of 11% over 2022, according to IDC's latest Worldwide Semiannual Internet of Things Spending Guide.
LEO satellites grabbed worldwide headlines in the wake of the war in Ukraine. Taiwan, a geopolitical hotspot, has demonstrated digital resilience in recent years. According to the B5G Project of Taiwan Space Agency (TASA), Taiwan's main objectives in developing LEO communication are to establish a self-reliant satellite industry, strengthen communication security and backup capabilities, and bridge the gaps in ground networks.
Wi-Fi 6/6E is already mainstream in 2023, so when will the Wi-Fi 7 boom occur? Wireless broadband equipment manufacturers pointed out that after testing the waters in 2023, 2024 will certainly be the main growth period of Wi-Fi 7. The only variable is the global economic development in 2024. Whether it will be a force that promotes technological upgrades or hinders growth remains to be seen.
Telecom operators in Europe and the US have been actively planning the industry's transition to Wi-Fi 7, providing impetus to the development of new products supporting the this standard, according to sources at IC design houses.
In a strategic move to expand its presence in the low-Earth orbit (LEO) satellite segment, China's Jiuquan Satellite Launch Center recently commissioned the Shiyan satellite. Developed specifically for satellite IoT applications, the launch utilized the Chang Zheng 2C (CZ-2C) shuttle. Billed as the "Chinese Starlink", Shiyan is designed to bolster China's progress towards 6G technology implementation. While technologically significant, this launch highlights China's broader challenge of establishing robust satellite infrastructure amidst evolving global broadband standards.
Chief information officer (CIO) of Taiwan Mobile Rock Tsai stated that the era headlined by mobile devices already concluded in 2020. From now until 2040, AI will be the driving force that dominates the tech industry. Currently, the group is participating in related projects through TWSC (Taiwan Web Service Corporation). He also hopes that Taiwan can invest more resources to develop an AI computing pool ecosystem.
Despite the US' decision to allocate massive funds for upgrading the country's network infrastructure, related IC design houses will still have to wait before business opportunities really arrive, according to industry sources. At present, the procurement markets in the US and Europe are still rather opaque as far as inventory correction and demand are concerned.
Linkcom Manufacturing, a Taiwan-based supplier of magnetic components and power supply modules, expects to see sales growth in the second half of 2023, spurred by US broadband infrastructure demand and an increase in wireless charging orders.
The K-Network 2030 strategy allotted a KRW625.3 billion (about US$500 million) budget for 6G mobile communication technology research and development from 2024 through 2028, eyeing to enhance the country's competitiveness in telecommunication technologies, according to DIGITIMES Research's latest study on South Korea's telecommunication industry.
In a move to enhance the country's digital infrastructure, the Biden administration is spearheading efforts to improve nationwide broadband services. The U.S. government has allocated more than USD$42 billion towards this endeavor. Although initially delayed in the first half of this year due to economic conservatism, this initiative is expected to gain momentum from H2 into 2024, driving demand within the supply chain.
Broadcom and Marvell continue to operate on extended delivery schedules, even though the chip shortage has largely been addressed. Despite the alleviation of the supply-demand imbalance in network and communication chips, Broadcom has not shortened its chip delivery schedules and essentially maintains the production schedules from the shortage period.
Ubiik, an emerging leader in Advanced Metering Infrastructure (AMI) and private LTE (pLTE) solutions, today announces the acquisition of New Zealand-based Mimomax Wireless, a provider of mission-critical communication solutions for narrowband channels. This acquisition will not only accelerate Ubiik's market expansion but will also bring Ubiik's leading-edge pLTE product line to Mimomax's global mission critical customer base. The new combined entity aims to bring innovative wireless solutions to market which will revolutionize communications for utilities and critical infrastructure.
Taiwan's weather satellite, the Triton, is set to launch on September 20, 2023, from the Guiana Space Center in French Guiana. The satellite, sourcing 82% of its components from Taiwan, was developed by the Taiwan Space Agency (TASA) in cooperation with 20 other industrial partners, aiming to conduct researches on air-sea interaction and typhoon intensity prediction.
Huawei's operating pressure mainly comes from the weak consumer electronics market recovery as well as overseas sanctions, especially in Europe and the United States. Huawei's revenue has declined, especially the consumer end product business, by 12% in 2022, seriously affecting its cash inflow. Therefore, Huawei has strived to crack technical barriers, invested in independent R&D and patent layout, and is now using its 5G and 6G intellectual properties to overcome constraints.