First-tier networking chip suppliers are stepping up efforts introducing Wi-Fi 6E into mainstream high-end and midrange product lines, but they are eyeing much more keenly on Wi-Fi 7 specs, according to industry sources.
Both MediaTek and Realtek Semiconductor believe that a wave of Wi-Fi 6/6E upgrades is still in progress and that basic demand has not abated. Wi-Fi chip sales can still contribute to their overall operations in 2023 if the customer purchase pattern returns to normal.
Taiwanese startups can no longer involve in "me-too" or "me-better" businesses, but must plan ahead and develop "me-only" technologies. The reasons are because the scales of Taiwanese venture capital (VC) and local market are limited, and does not have an advantage in demographic dividend. Mr. Michael Kao, President of Taiwan ITRI New Venture Association (TINVA) said that environmental, social, and governance (ESG), pharmaceuticals, smart manufacturing, and the semiconductor industries are some of the cutting-edge technologies that Taiwan should plan ahead and invest in. Given Taiwan's complete information and communications technology (ICT) industry chain, there is a good chance that Taiwan can gear to become a key hub for innovations and startups for the Asia Pacific region.
Network device manufacturers are cautiously optimistic about operations this year, as customers begin to slow their pace of new orders, according to industry sources.
MediaTek has provided a relatively optimistic short-term outlook concerning handset inventory digestion at channels. It has also seen some recovery in non-handset business segments. But MediaTek has stressed that it needs more time to observe the long-term business outlook for the entire 2023, which highlights the uncertainties shrouding the current market.
MediaTek expects to post a further revenue decrease of 6-14% in the first quarter of 2023 after experiencing a nearly 24% sequential revenue decline in the fourth quarter of 2022.
All firms with considerable business scales in Taiwan's electronics industry are publicly traded. When they release their tentative annual financial indicators, we can already grasp the growth momentum of the industry, as well as the interactions between different industry sectors and the medium- and long-term outlook. DIGITIMES has again collected data on the ICT product manufacturing, semiconductors, optoelectronics, IC distribution and components sectors, providing readers with a comprehensive picture of the electronics industry and an outlook of the industry trends in 2023.
Mobile SoC specialist MediaTek will still see headwinds from the handset market challenge its operations in the first half of 2023, according to market sources.
Taiwan-based LandMark Optoelectronics, which specializes in GaAs and InP epi-wafers for optical communications, expects to post another on-year revenue increase in 2023, when the company will start shipping 800G silicon photonics components.
High-frequency microwave device maker Universal Microwave Technology (UMT) is optimistic about its prospects for 2023, buoyed by the continued growth of the global telecommunication industry driven by 5G infrastructure.
Realtek Semiconductor will remain focused on its high-end offerings to avoid price competition from peers focusing on mass-market device applications, according to the Taiwan-based network IC specialist.
Most network device makers in Taiwan, including Sercomm, Arcadyan, Accton Technology, Alpha Networks and Hitron Technologies, experienced a fruitful year in 2022 with annual revenues hitting new highs, and they are optimistic that growth momentum will persist in 2023 with order visibility clear for 2-3 quarters ahead, according to industry sources.
The new 14-and 16-inch MacBook Pro models just unveiled by Apple both support the newest Wi-Fi 6E (802.11ax) wireless communication standard, which is expected to notably drive up the penetration of the upgraded spec in notebooks, according to industry sources.
More Taiwan-based network device manufacturers, including Senao Networks, are looking to relocate production to Vietnam for manpower and cost reasons, according to Tommy Tsai, chairman of Senao.
As the industry upgrades to faster connectivity technologies, such as 5G NR and Wi-Fi 6/6E, IC inspection labs remain optimistic about wireless communication device demand in 2023.
VividQ, a Cambridge-based holographic display technology company, announced on January 17 that it is partnering with Dispelix, a Finnish waveguide supplier, to produce a breakthrough augmented reality (AR) technology that will bring AR experience to the next level.
Cisco Systems will continue participation in 5G ORAN (open radio access network) testing in Taiwan in 2023 through selecting 1-2 local enterprises as additional partners, according to Greater China vice president and Taiwan general manager Steven Lin for the company.
In the 5G era, Open RAN is expected to form an emerging market. However, according to a survey conducted by DIGITIMES Research, the industry is still cautious about when the market will take off.
Pegatron expects sales generated from automotive and communication devices will drive overall revenue growth in 2023, according to president and co-CEO Johnson Deng.
Networking solution provider Planet saw record revenue growth in 2022 and has remained optimistic about its outlook toward 2023. In response to the strong wireless communication demand of smart IoT, PLANET also released a new router to take full advantage of this business opportunity.
Networking/communication device makers Arcadyan Technology and Alpha Networks have reported consolidated revenues of NT$47.168 billion (US$1.58 billion) and NT$33.634 billion respectively for 2022, with each being the historically highest annual level, according to the companies.
Qualcomm Technologies Inc. announced on January 13 the launch of its 5th Qualcomm Innovate in Taiwan Challenge (QITC) to support Taiwan startups in developing innovative solutions using Qualcomm's mobile platforms in the areas of 5G, Internet of Things (IoT), Edge AI, Machine Learning, Smart Cities, Robotics and Multimedia.
The so-called "Taiwan version of Chips Act" was passed in the Legislative Yuan on January 7, but the amended statutes are not all about chips, nor was it only for "protecting TSMC's processing technologies", and will only be effective until December 31, 2029.
At CES 2023, Qualcomm announced its Snapdragon Satellite solution. This further escalated the already heated competition in the mobile phone satellite communication sector.