www.digitimes.comThursday June 2, 2016

Tel:+886 2 8712-8866 Fax:+886 2 8712-3366 Advertising:editor@digitimes.com

Looking for Intel inside

Aaron Lee, Taipei; Joseph Tsai, DIGITIMES

Nintendo’s next-generation game console, the Nintendo NX is now scheduled to enter mass production in early 2017, setting up a delay of about half a year from the company’s original mass production plan for the second half of 2016, according to industry sources.

The sources from the related upstream supply chain pointed out that the delay was because Nintendo wished to further integrate the game console’s video-game/handheld-game functionality to enhance the overall gaming experience, while also adding a virtual reality (VR) function into the system to make the solution

m o r e c o m p e t i t i v e a m i d dramatic improvements in the related technology available to vendors.

The Nin tendo NX wi l l be assembled by Foxconn Electronics (Hon Hai Precision Industry), but Foxconn has d e c l i n e d t o c o m m e n t o n matters concerning its clients or products.

The sources pointed out that the Nintendo NX combines a video gaming experience with the mobile gaming experience. The device features a 5- to 7-inch display, controller and joystick for users to play as a mobile gaming product, but it is also able to connect to a TV for users to play as a video gaming system. Nintendo is now planning to add a virtual

reality function to the device to satisfy the popular trend in the gaming market.

Nintendo’s smartphone games have received positive feedbacks from gamers. Since N i n t e n d o ’s l a u n c h o f i t s Miitomo, the number of users playing the game has already surpassed 10 million, while Nintendo’s Animal Crossing, which involved social activities, also sold over 20 million units on the company’s 3DS system.

The sources pointed out that the supply chainy received notification to start developing mold for the Nintendo NX in mid-2015 and was told that the system would enter mass production and launch in the mid-2016. However, Nintendo has recently given

them a new mass production schedule and asked them to start mass producing some key components at the end of 2016.

Nintendo’s order volume for the game console has also been reduced. Nintendo originally planned to order 20 million units for the first year, but its shipment target is now only 9.5-10 million units. The sources believe the reduction was due to the fact that video game console market has been shrinking and concerns triggered by its Wii U’s unsatisfactory shipment performance of two million units in 2015.

Taiwan’s Foxconn wi l l handle over 40% of the orders, while Japan-based Misumi and Hosiden will handle the rest.

VR for Nintendo NX means mass production delayed to early 2017

NEWS Thursday June 2, 20162

Betty Shyu, DIGITIMES Research

The landscape of the global OEM AIO (al l - in-one) PC market will undergo a dramatic change in 2016 as number-two maker TPV-Inventa Technology begins making its gradual exit from the segment, according to Digitimes Research.

Asia Vital Components (AVC), a supplier in Lenovo’s PC supply chain, and Compal are expected to benefit the most from the exit, though Inventec – the parent company of TPV-Inventa – will also pick up some orders.

Both TPV-Inventa and Compal were manufacturing partners of Lenovo and Asustek. But while Lenovo will shift the bulk of its TPV-Inventa orders to AVC - though some will go to Compal – Asustek will shift most of its orders to Compal. Overall, Compal’s AIO PC shipments are expected to grow a dramatic 56% on year in 2016.

However, Quanta Computer will continue to be the top OEM/ODM maker for AIO PCs in 2016 thanks to orders from Apple. The maker will account for 35% of global OEM AIO PC shipments, which are expected to approach 13 million units in 2016, according to a Digitimes Research forecast.

PTV-Inventa , which he ld a 16.5% share in the segment last year, is expected to see its AIO PC shipments decline to below 900,000 units in 2016, representing a drop of 62% from 2.37million units shipped one year earlier.

Pegatron Technology, Wistron and Compal Electronics will each account for a 10-13% share.

AVC is expected to snap up a total of 1.2 million AIO PC orders

from Lenovo in 2016. While the increased orders won’t make AVC become a major player in the AIO industry, the company will become a more competitive second-tier maker.

AIO partnerships fraying amid falling shipments

In October 2015, Digitimes reported that Inventec raised its stake in TPV-Inventa - its all-in-one PC manufacturing joint venture with TPV – to 90%, up from an original stake of 49%, as TPV began souring on a shrinking market that was more suited to PC makers than display players. At the time, Inventec noted that while the AIO market was a tough market to succeed in, the company remained optimistic about the product line. TPV-Inventa had already turned profitable in 2014 and its AIO shipments in 2015 were a record high 2.37 million units, despite the overall market shrinking 5% on year.

However, Inventec soon had to face another setback - the petty jealousies and betrayed loyalties that govern the contract manufacturing industry. TPV-Inventa had been a manufacturing partner of Lenovo in the AIO m a r k e t . M e a n w h i l e i n t h e notebook market, China-based Xiaomi decided it would enter into the 2-in-1 device (tablet and notebook hybrid) business – the vendor is scheduled to release a 12.5-inch and a 13.3-inch 2-in-1 device in June or July, priced beg inn ing a t US$499 . Th i s maneuver will bring Xiaomi in direct competition with Lenovo, which is not pleased with the increased competition it faces. Feeling betrayed by Inventec, Lenovo decided to gradually shift its orders away from TPV-Inventa

to other makers. From Inventec’s perspective,

it was becoming clear that the AIO market was just not worth the trouble, especially compared to opportunities in the notebook market. The scale of the AIO market is much smaller than the notebook market and shipments have been dropping on an annual basis over the past few years. Worldwide AIO shipments were 14.6 million units in 2013 and decreased to 13.3 million units in 2015 and are expected to decline further to reach 12.6 million units in 2016. Although the notebook market has also been suffering from declines during the past few years, shipments are still expected to reach 144 million units in 2016, down 8.5% on year.

Since Xiaomi has good brand recognit ion and stable sales channels in China, Digitimes Resea rch expec t s X iaomi ’s notebook orders to Inventec for 2016 to reach 600,000 units and the orders will boost Inventec’s notebook shipments in 2016 to over nine million units, greatly narrowing its gap with Taiwan’s fourth-largest notebook maker Pegatron.

As for profitability, the average gross margin for AIOs is about 5-7%, only slightly higher than the 3-4% makers see for notebooks, but the gap is not large. For Inventec, landing orders for notebooks provides more benefits.

A s f o r T P V- I n v e n t a , i t s shipments are expected to drop over 60% on year to total less than one million units in 2016 and decline further to 200,000 units in 2017 and the company will be completely out of the business by 2018.

TPV-Inventa’s AIO PC clients include Lenovo, Hewlett-Packard

(HP) , Asus tek and Toshiba . Lenovo will gradually shift its TPV-Inventa orders to AVC and Compal, while TPV-Inventa’s orders from HP will be shifted up into parent-company Inventec in the second half of 2016, helping Inventec’s AIO shipments reach 1.2 million units.

TPV-Inventa’s partnership with Asustek will also end in the second quarter and Asustek will then shift those orders to Compal starting in the third quarter. The related shipments from TPV-Inventa to Asustek were around 200,000 units a year.

Lenovo warms to Compal and AVC

Digitimes Research explained that AVC first landed AIO orders from Lenovo in February 2016 but only for an estimated 300,000 units. However, with TPV-Inventa exiting the market, Digitimes Research increased the related shipment forecast to 1.2 million

units and AVC will supply a total of four all-in-one PC models. In addition to the shifted orders this year, TPV-Inventa will also not receive any new orders from Lenovo in 2017, even though it will continue to complete its previous contracts with the vendor.

Overall, TPV-Inventa will still ship 600,000 AIOs to Lenovo in 2016 but AVC and Compal will be the China-based vendor’s top AIO suppliers this year, accounting for 36% and 33% of Lenovo’s AIO shipments, respectively.

AVC has a tight relationship w i t h L e n o v o , i n c l u d i n g p a r t n e r s h i p s f o r a n u m b e r o f d i f f e r e n t p r o d u c t l i n e s , including servers. Lenovo is also aggressively nurturing AVC to become a major ODM partner.

As for Compal, its Lenovo AIO orders are expected to reach 1.3 million, up 44% from 2015’s 900,000 units. Added to that are the Asustek orders, totaling around 100,000 units.

Shifting allegiances and a failed joint venture exemplify a stagnating AIO PC industry TPV-Inventa all-in-one PC shipments, 2013-2017 (m units)

Source: Digitimes Research, May 2016

-100%

-80%

-60%

-40%

-20%

0%

20%

40%

0

500

1,000

1,500

2,000

2,500

2017(f)2016(f)201520142013Shipments 2009002,3702,2611,928Y/Y -77.80%-62.00%4.80%17.30%

Lenovo outsourcing plan changes, 2016 (m units)

Source: Digitimes Research, May 2016

Original plan Quanta TPV-Inv Wistron Compal AVC Total

Volume 120 1,380 400 1,300 300 3,500 Proportion 3% 39% 11% 37% 9% 100% New plan

Quanta TPV-Inv Wistron Compal AVC Total Volume 120 600 400 1,300 1,200 3,620

Proportion 3% 39% 11% 37% 9% 100%

Sponsored content

The rapid developments of IoT (Internet of Things)

have brought new opportunities for silicon vendors. As a leading p rov ide r o f mobi l e and TV chipsets, MediaTek has been putting lots of efforts in deploying IoT market over the past years, aiming to leverage its advantages in smartphone market to make i n r o a d s i n t o t h e e m e rg i n g applications.

“We have made significant progresses with several customers launching end products to the market,” JC Hsu, corporate vice president and general manager of IoT Business Development at MediaTek, said. “We will keep building comprehensive IoT solutions and drive the industry moving forwards as a technology enabler.”

Bring Mobile Advantages into Full Play

Hsu explained that IoT is a natural evolution from mobile Internet technology, along with the availability of telecommunication infrastructure. For a wide range of consumer IoT devices, low-power, connectivity, and multimedia are the key features, and these are the areas that MediaTek excels at.

“ I n t e r m s o f p o w e r consumption, IoT devices require more compact area but perhaps only one fifth of power budget. Similarly, connectivity includes cellular, Wi-Fi, Bluetooth and other standard, thus we need to consider higher integration and interference issues in a smaller area. All these will be the critical factors for chip vendors to stand out from the competitive market.”

“ I n a d d i t i o n , q u a l i t y multimedia and camera functions are a lso essent ia l . With our

strengths in the TV, DVD, and mobile phone market, we are fully confident that we will be able to embrace new opportunities.”

H o w e v e r, t h e r e a r e s t i l l plenty of challenges to be solved in the market. “IoT market is characterized by full diversity, small volume, multiple standards, security, and service-oriented vertical applications. Because o f d i f f e r e n t f u n c t i o n a l i t y, specifications, and services, the turnkey solutions that used to be successful in mobile phone market can no longer fit. It challenges not only device makers’ design and manufacturing ability, but also chip vendors’ to provide total solutions.”

Providing Solutions to Lower Design Barriers

In order to embrace market t r e n d s , a c c o r d i n g t o H s u , MediaTek is the members of G S M A , 3 G P P, O I C ( O p e n I n t e r c o n n e c t C o n s o r t i u m ) , working with leading companies to participate in standardization process. Moreover, MediaTek’s products are designed to support JD Cloud, Aliyun, OIC, and Apple Home Kit standards, as well as software and hardware development kits, in a bid to meet various product requirements.

Strategically, MediaTek will mainly focus on consumer market, where the company already has solid customer bases, and then expand to other applications, i n c l u d i n g i n d u s t r i a l a n d automobile.

T h e r e a r e a l r e a d y s o m e customers adopting MediaTek’s MT2502 and MT2601 to develop a wide range of wearables, such as smartwatches, fitness bands, kid shoes, and bike computers. In addition, early this year, the company announced MT2511,

its first bio-sensing analog front-end chip designed for health and fitness devices, to enable bio signal acquisition through electrocardiography (ECG) and photoplethysmography (PPG) simultaneously. Another new p r o d u c t i s M T 7 6 9 7 , w h i c h delivers low energy Bluetooth and dual-band Wi-Fi for smart home and home automation products.

O n t h e o t h e r h a n d , MediaTek endeavors to provide comprehensive hardware and software solutions and easy-to-use development platforms to help customer lower entry barrier and shorten time to market. At the same time, the company also actively builds an ecosystem, forming partnership with companies across different industries.

For example, by establishing MediaTek Labs, MediaTek tries to help developers and start-ups to quickly move from concept designs to mass production. With the market featured with small-volume but large-variety, it is difficult for developers and start-ups, which have very limited resources, to find manufacturing partners. “We hope to play a role between them and to fulfill both of their demands, so that these companies will be able to shorten time to market and get success.”

F u r t h e r m o r e , M e d i a Te k has actively sponsored several innovation competit ions and

cultivation programs in Taiwan a n d C h i n a t o e x p l o r e n e w innovative products and foster talents.

“Among them, Tini te l l , a Sweden-based start-up, adopted o u r s o l u t i o n s t o d e v e l o p a wearable mobile phone for kids. By in tegra t ing 2G and GPS functions, the product can not only help parents track the locations of kids, but also talk to them directly. It was us that help Tinitell find a suitable manufacturer in China. This is a perfect example of how MediaTek Labs supports star-ups to launch products on market, because we believe that our success relies on customers’ success”, Hsu said.

Innovation + Cross Cooperation to Shape New Landscape

As for industrial applications, C h u n g h w a P r e c i s i o n Te s t Technology Company (CHPT), a subsidiary of Chunghwa Telecom, adopted MediaTek’s solution to deve lop da ta acquis i t ion equipment, heading to embrace the Industry 4.0 trend. Also, the smart remote control devices developed by China’s BroadLink can be used to control home appliances through mobile apps, the first step to realize the smart home vision, and the products has been moved into mass production this year. These are some of the successful

stories that MediaTek has achieved to diversify its customer base in IoT market recently.

I n t e r m s o f a u t o m o b i l e applications, according to Hsu, by combining cellular and GPS technologies, various connected car applications, such as fleet management and asset tracking, are increasingly popular, and this is the area that MediaTek can play an important role.

He emphasized that the success of IoT relied on the combination of business models, hardware d e v i c e s , a n d a p p l i c a t i o n s . Because devices are of no fixed functions, it is very important for device makers to understand the requirements of end applications and to seek for cross-industry cooperation opportunities. For example, in-car OBD (on-board diagnosis) devices can be used to collect related driving information fo r the ana lys i s o f d r ivers ’ behavior.

The device can have more a d d - o n v a l u e s i f t h e y a r e provided to insurers, so that they can design insurance policies with more flexibility based on customers’ driving patterns. This is an example to show why the design concept of IoT devices can not only be purely hardware, because their true value lies in effective business models, and needs to leverage through cross-cooperation.

INTERVIEWThursday June 2, 2016 3

MediaTek will be highlighting how it enables IoT solutions at Computex 2016

MediaTek leverages mobile advantages to become technology enabler for IoT

Your Op�mized Data Center

3

Joseph Tsai, DIGITIMES, Taipei

Despite having been operating in the graphics card market for

many years, Gigabyte Technology has never stopped evolving. Not willing to stay only as a good-quality graphics card maker, Gigabyte has developed its Xtreme Gaming-series, looking to cultivate deeper relationships in the gaming market.

Digitimes recently sat down with Eddie Lin, Gigabyte’s Sales and Marketing Associate Vice President of Gaming Product Business Unit to discuss the development of the Xtreme Gaming-series and its concepts.

Gigabyte created Xtreme Gaming, a product l ine consis t ing of IT hardware such as graphics cards and mice that are designed specifically for gaming purposes, at the end of 2015. However, Xtreme Gaming is not only a hardware series, it is also a new business concept that Gigabyte has adopted for its future operations.

Prior to the release of Xtreme

Gaming, Gigabyte’s strategy for the graphics card business was stable, but still lacked a strong direction. Although its brand has a reputation for good quality and good after-sales service, the company’s reach in the gaming community was still rather weak.

Aiming to enhance its product lines and strengthen its connection with gaming communities, Gigabyte created the Xtreme Gaming concept and will target five major directions to push and promote. The first direction is to extend Gigabyte’s product lines with the latest technologies and innovations, the second is to recruit talent from the gaming market to gain better understanding of the ecosystem, the third is to aggressively participate in gaming communities, the fourth is to form cross-industry cooperation with other companies to provide gamers with next-generation gaming experiences, and fifth is to find partners to jointly develop new technologies to support gaming.

For the first direction, Gigabyte expects Xtreme Gaming to be an extension of its existing product lines. As for what kind of graphics cards are qualified to carry the Xtreme Gaming name, Lin pointed out that it is not necessarily those with the highest prices or top-end specifications. The Xtreme Gaming brand is meant for graphics cards that are designed to be the best in their category.

Since some gamers are already able to play their favorite games with mid-range graphics cards, Xtreme Gaming mid-range cards with Gigabyte’s latest technologies and designs will allow these gamers to have competitive gaming experiences against products offered by other competitors.

In addition to providing what gamers want from their hardware, another major purpose for the Xtreme Gaming brand is to bring next-generation gaming experiences to its customers with cooperation from Gigabyte’s partners.

Currently, the newest gaming

experience on the market is virtual real i ty (VR). Xtreme Gaming’s mission in the VR market is to optimize the user’s gaming experience including resolving hardware/software compatibility issues and minimizing dizziness when wearing a VR headset via hardware/software adjustments.

Gigabyte is aggressively looking to recruit all kinds of talent from the gaming industry. Gigabyte has recruited several retired e-sport gamers as well as many gaming enthusiasts to join its family. Through them, Gigabyte is able to become more involved in the gaming market, as the company needs talent that is able to talk in the language of gamers and understand the market’s ecosystem.

Gigabyte has also been forming partnerships with e-sport teams; however, instead of only investing money in advertisements, the company is more interested in receiving their feedback on product usage.

Gigabyte’s investments in e-sport teams cross international boundaries.

The investment model helps Gigabyte understand gamers’ usage habits and needs in different regions. This feedback greatly benefits Gigabyte i n improv ing i t s p roduc t s and technologies for different games and different consumers.

The cooperation with e-sport teams also allows Gigabyte to further connect with gaming communities in different regions to tighten its relationships. Gigabyte has found that gamers in different countries have interests in different games, and it has to make improvements on a game-by-game basis in order to satisfy demand from different regions.

I n a d d i t i o n t o p a r t n e r s h i p s with companies, Gigabyte is also engaging with gamers to help guide it and its partners’ direction on what technologies to develop. Feedback from gamers will become important guidance for Gigabyte to improve or to create new technologies.

Gigabyte expects Computex 2016 to be a great platform for finding cross-

industry partnership opportunities. In addition to its in-house developed technologies, Gigabyte is also open to ideas, and hopes to find partners with thoughts on the development of new gaming experiences.

TRACKER/INTERVIEW Thursday June 2, 20164

Chian to fall by 16.9% on quarter. Among the three top players,

Sp read t rum showed the wors t decrease of almost 30%. Qualcomm saw an on-quarter shipment decrease of 13.9%, while MediaTek’s on-quarter shipment decrease came to 8.8%.

A n n u a l s h i p m e n t s g r e w consecutively for three years mainly due to the fact that Spreadtrum’s shipments have been showing on-year growths.

2Q16 forecastSecond-quarter 2016 demand

for smartphone AP in China is expected to recover as downstream firms replenish inventories and new products are introduced by chipmakers and end-market firms. The two factors will drive second-quarter 2016 shipments to grow 11.3% sequenially.

The top-three smartphone AP firms are expected to see shipments increase in second-quarter 2016 due to seasonal factors but MediaTek is expected to see a smaller shipment growth compared to the other two firms due to serious competition.

DIGITIMES Research: China Smartphone AP Tracker – 1Q 2016

China smartphone AP shipments1Q16 reviewAccording to Digitimes Research,

f i r s t -quar te r 2016 demand for smartphone application processors ( A P ) i n C h i n a w a s w e a k , a s manufacturers reduced production during the Lunar New Year holidays and some customers had already stocked up enough inventories in the previous quarter. First-quarter 2016 smartphone AP shipments in China were slow with a sequential decrease of 16.9%, reaching 134.8 million units. However, a significantly low volume recorded in first-quarter 2015 – during which Spreadtrum had performed poorly – means an on-year increase of 28.7% in overall shipments of smartphone APs in China in first-quarter 2016.

Taiwan-based MediaTek showed an on-quarter shipment decrease of 8.8% during the first-quarter 2016 low season. China-based Spreadtrum was heavily impacted by the Lunar New Year holidays as most of its orders are from domestic clients, and its first-quarter 2016 shipments showed a sequential decrease of 29.4%. In first-quarter 2016, MediaTek saw its share in China’s smartphone AP market return to 46%. Qualcomm, which sees a high percentage of orders coming from markets other than China, was less affected by the low season in China. Qualcomm’s worldwide shipments showed an on-quarter decrease of 13.9% in first-quarter 2016, as it continued shipments of new solutions. The US-based vendor also saw an increase by 0.8pp in its share of the China market on quarter in first-quarter 2016.

HiSilicon’s mid-range Kirin 900 series saw shipments slow down a bit but shipments of Kirin 950 continued to be strong. Although the firm saw overall shipments fall by 16.7% on quarter, its China market share reached 9.3%, up 0.1pp sequentially. Leadcore’s shipments dropped 66.7%

sequentially as its main customer, Xiaomi, saw some of its devices nearing the end of their product life cycles.

2Q16 forecastAccording to Digitimes Research,

smartphone inventory level has become low in second-quarter 2016 with the launch of new products, and demand for smartphone APs in China is expected to recover with sequential shipment growth reaching 11.3%.

MediaTek is expected to see an overall shipment growth of only 8.1% on quarter in the second quarter of 2016, lower than the market average, as it faces tough competition in the entry-level to mid-range market segments. MediaTek’s shipments to the high-end market segment will be limited despite increases in orders. Qualcomm is predicted to experience significant shipment increase in the mid-range to high-end market segments as the firm has successfully penetrated these segments with its 14nm process Snapdragon 625, to which competitors have failed to offer comparable products. Spreadtrum is expected to see second-quarter 2016 shipments grow by 16.7% sequentially although the firm faces serious delays of almost two quarters in delivering its entry-level 4G solution using the 16nm process. But shipments of its super entry-level SC9832 continue to be strong, according to Digitimes Research.

HiSilicon officially launched its mid-range Kirin 650 series priced less than CNY1,000/unit (US$153/unit), and this is expected to boost the firm’s shipments because reviews of the end device, Huawei P9, which runs on Kirin 650, have been positive. The positive reviews will also shore up Huawei’s profits. In second-quarter 2016, shipments of Huawei products using HiSilicon chips are expected to show an on-quarter growth of 12%.

Two major factors affected China smartphone AP shipments in the first

quarter of 2016.Market effects:

Introduction

Key factors affecting China smartphone AP shipments

Factor Item Analysis Influence

on shipments

Market forces

Consumer end

China market showing slow demand due to Lunar New Year holidays. ↓

End product firms

Clients already built up inventories in the previous quarter; demand was falling in the market. ↓

Chipmakers

Spreadtrum New products failed to offset decreases in

shipments of existing products; market demand slowed down.

↓

MediaTek Affected by the low season. ↓

Qualcomm Affected by the low season and strong competition in the entry-level market. ↓

HiSilicon New high-end solution shipments increased but

failed to have products for the entry-level to mid-range segments.

↓

Leadcore Demand fell rapidly as Xiaomi neared EOL. ↓

Key factors affecting China smartphone AP shipments in 1Q16

Note: The more stars, the higher the influence. ↓ indicates negative influence, ↑indicates positive influence.Source: Digitimes Research, May 2016

Key factors affecting China smartphone AP shipments in 2Q16

Note: The more stars, the higher the influence. ↓ indicates negative influence, ↑indicates positive influence.Source: Digitimes Research, May 2016

Factor Item Analysis Influence

on shipments

Market forces

Consumer end New products attracting consumers. End product

firms Need to replenish inventories and increase

orders to meet demand for the new products.

Chipmakers

Spreadtrum Serious delay in 16nm solution but demand for entry-level 4G solution continues to increase.

MediaTek Low inventory levels at the customers help orders rebound but faces strong competition.

Qualcomm Strong shipments for its 800 and 600 mid-range to high-end solutions.

HiSilicon Steady shipment growth of end-market products using Kirin 650 and Kirin 960.

Smartphone/Tablet share of AP market

Demand for smartphone APs in China fell more significantly than the demand fall for tablet APs in first-quarter 2016. Smartphones’ share of the China AP market came to 87.4%.

Tab le t AP demand was a l so affected by the low season and the Lunar New Year holidays, but the decrease was not as significant as smartphone APs with its share reaching 12.6%, showing an on-quarter increase of 0.4pp.

2Q16 forecastDemand for smartphone AP in

China is expected to revive in second-quarter 2016 meanwhile the tablet market continues to dwindle. Hence, smartphone AP market share is expected to increase by 1% on quarter reaching 88.4%.

The dwindling of the tablet market causes demand for tablet AP to be weak hence market share is expected to fall by 1% on quarter in second-quarter 2016. Compared to the season factors that cause the smartphone market shipments to rise and fall, the tablet market has been in the trough for a while.

The launch of mid-range P10 gave MediaTek a smaller decrease of shipments in first-quarter 2016 than its competitors. Hence the firm’s market share increased by 4.1pp on quarter, reaching 46%.

Qualcomm’s new mid-range to high-end products continued to be favored by the market, and its market share increased to 23% in first-quarter 2016.

Spreadtrum lacks a diversified product portfolio and was more

affected by seasonal factors, resulting in the firm seeing steeper drops in shipments than its competitors. The firm’s market share fell by 3.1pp on quarter.

H i S i l i c o n ’s m a r k e t s h a r e increased 0.1pp sequentially. Its shipment to the high-end market segment grew even though its overall shipments decreased. The firm’s first-quarter shipment decrease is smaller compared to MediaTek’s and Spreadtrum’s.

China-based customers stocked up inventories early and due to the traditional low season, demand for

key components was weak in the first quarter of 2016 causing the overall shipments of smartphone APs in

Shipments by supplier

Smartphone AP shipments in China

Shipment breakdown

China AP shipments by application, 1Q15-2Q16 (m units)

Source: Digitimes Research, May 2016

0

40

80

120

160

2Q16(f)1Q16(e)4Q153Q152Q151Q15Smartphone AP 150.0134.8162.3138.3122.5104.7Tablet AP 19.619.424.324.124.024.7

Shipments by supplier, 1Q15-2Q16 (m units)

Source: Digitimes Research, May 2016

0

20406080

100120140160180

2Q16(f)1Q16(e)4Q153Q152Q151Q15Intel 1.00.80.80.30.50.2Samsung 2.52.02.02.00.51.0Marvell 1.50.50.51.02.51.5NVIDIA 0.00.00.00.00.50.5Leadcore 1.02.06.05.07.05.5Hisilicon 14.012.515.012.06.55.0Spreadtrum 28.024.034.027.022.018.0Qualcomm 35.031.036.028.029.024.5Mediatek 67.062.068.063.054.048.5

China smartphone AP shipments, 1Q15-2Q16 (m units)

Source: Digitimes Research, May 2016

-30%

-20%

-10%

0%

10%

20%

30%

40%

0

20

40

60

80

100

120

140

160

180

2Q16(f)1Q16(e)4Q153Q152Q151Q15Shipments 150.0134.8162.3138.3122.5104.7Q/Q 11.3%-16.9%17.4%12.9%17.0%-18.7%Y/Y 22.4%28.7%26.0%19.4%18.8%14.7%

Continued on page 5...

2Q16 forecastMediaTek is expected to see

second-quarter 2016 shipment growth a bit smaller compared to other firms. Its market share is expected to fall by 1.pp on quarter to reach 44.7%.

Qualcomm has launched its new mid-range solution and continues to be favored by the market, which will send its shipments growing in second-quarter 2016. The firm’s market share is expected to increase to 23.3%.

Despite a lack of a diversified product portfolio and a delay in

delivering its 16nm, Spreadtrum, using price competitiveness, continues to be strong in the entry-level market. The firm’s market share will increase 1pp sequentially to reach 18.7%.

HiSilicon launched its new mid-range solution and enhanced its high-end solution in the first quarter of 2016. It has seen steady shipment growth. However, only Huawei uses HiSilicon chips and the firm’s shipment growth are similar to the market average.

Eddie Lin, Associate VP of Sales and Marketing of Gigabyte’s Gaming Product Business Unit

Gigabyte to push Xtreme Gaming concept for graphics card business

The long Lunar New Year holidays causing demand to be weak for all markets.

Chip vendor status: MediaTek saw shipments decrease

of 8.8% sequentially due to seasonal factors.

Spread t rum, which depends heavily on the domestic orders, saw shipments fall significantly.

Q u a l c o m m s a w e n t r y - l e v e l solution shipments fall significantly and although the firm’s shipments to the mid-range to high-end market segments grew, its overall shipments decreased due to the weak season.

HiSilicon saw shipments of high-end products increase but not for entry-level to mid-range shipments.

Leadcore saw shipments decrease significantly as the product life cycles of Xiaomi’s devices were coming to an end.

2Q16 forecastTwo major factors affected China

smartphone AP shipments in the second quarter of 2016.

Market effects:New products and the need to

replenish inventories will revive demand for key components such as chips.

Chip vendor status:Med iaTek to s ee sh ipmen t s

rebound but faces strong competition.Spreadtrum has trouble beginning

mass production of its 16nm solution but shipments of its entry-level SC983X continue to increase.

Q u a l c o m m f a c e s t o u g h competition in the entry-level market with shipments falling significantly but its foothold in the mid-range to high-end market segments remains strong. The firm’s overall shipments are expected to be grow.

HiSilicon continues to see stable increase of shipments for its mid-range to high-end solutions.

MediaTekMediaTek saw first-quarter

2016 shipments decrease 8.8% sequen t i a l ly main ly due to seasonality. The firm’s shipments of mid-range to high-end solutions were also weaker than expected.

The firm did not introduce high-end products to support support Cat.6 to compete with Qualcomm, which i s par t ly blamed for the firm’s failure to continue a long spell of sequential shipment growth.

MediaTek’s f i r s t -quar te r 2016 shipments showed an on-year increase of 27.8% due to the launch of new products that immediately captured market share.

MediaTek is expected to see shipments grow by 8.1% on quarter in second quarter of 2016 due to downstream customers replenishing inventories and the launch of new products.

S h i p m e n t s o f h i g h - e n d X20, X25, and mid-range P10 continue to increase pushing the firm’s overall shipment growth but strong competition from Qualcomm and Spread t rum continues to limit the magnitude of the firm’s shipment growth.

MediaTek is expected to see shipment growth of 24.1% on year due to the expansion of the market and the adjustments made in its product mix.

Domestic demand in China a n d d e m a n d i n e m e r g i n g markets continue to grow, gifting MediaTek with order increases.

By baseband typeS h i p m e n t s h a r e o f LT E

solutions among total MediaTek shipments reached 81.1% in

first-quarter 2016 as 3G solution shipments continued to fall.

Shipment share of WCDMA in first-quarter 2016 accounted for 13% of total MediaTek shipments. End-market WCDMA products have been using older solutions, a n d t h e r e h a s b e e n s t r o n g competition from Spreadtrum’s low-price solutions. WCDMA’s share of total MediaTek shipments continued falling.

2Q16 forecastThe LTE solution products’

share of MediaTek shipments is

expected to reach 85% in second-quarter 2016 due to their strong penetration in the entry-level market.

D e m a n d f o r W C D M A solutions continue to be stable in the emerging markets such as India, and the products’ share fell only a bit in second-quarter 2016 to 11%.

By architectureMediaTek’s new products

launched in the first quarter of 2016 were mainly based on

Cortext-A53 architecture’s market share increased to 59% in the first quarter of 2016 as major chipmakers continued to switch to the platform.

Although Cortex-A7 is quite old, the client base is still quite large due to its low cost. Its market share increased 1pp on-quarter to 32% in first-quarter 2016.

The market share of Cortex-A15 and Cortex-A17 in the first quarter of 2016 was only 1% due to the impact from the industry’s shift towards 64-bit.

Mid-range to high-end Cortex-A72’s market share increased 0.5pp on quarter in first-quarter 2016 due to continuous shipments of related products by Qualcomm and MediaTek.

TRACKERThursday June 2, 2016 5

Continued on bottom of page...

...Continued from page 4 2Q16 forecastT h e m a r k e t s h a r e o f

Cor tex-A53 a rch i t ec tu re i s expected to show a 1.3% on-quarter decrease due to the launch of other high-end architectures such as Kryo and Cortex-A72 in second-quarter 2016.

The market share of entry-level Cortex-A7 architecture is expected to increase 2pp on quar ter due to the pr ice competition between Spreadtrum and MediaTek.

Due to the industry’s shift towards 64-bit, the market share of

CortexA15/A17 is expected to fall to 0.3% in second-quarter 2016.

T h e m a r k e t s h a r e o f Cortex-A72 architecture is likely to increase 1.5pp on quarter due to continuous shipments of new products from Qualcomm and MediaTek.

Cortex-A53 architecture, and its shipment share continued to increase to 84%.

Cor t ex -A72 sh ipmen t sha re reached 1% due to X20 and X25 shipments.

Shipment share of Cortex-A7 continued to account for 13.5% and it was mainly used in 3G solution and some 4G products.

Shipment share of Cortex-A9 fell by 1pp on quarter while shipment share of Cortex-A15 fell by 0.5pp on quarter due to the lack of new orders.

2Q16 forecastThe launch of its new entry-level

to mid-range products in second-quarter 2016 increases the product share of Cortex-A53 by 0.5pp on quar te r among to ta l MediaTek shipments.

Shipments of X20 and X25 have been strong as customers begin to favor the products, and the share of Cortex-A72 is expected to increase by 1pp on quarter. Although there are no new products that use Cortex-A7 and new 4G solutions have begun to adopt Cortex-A53, low-price solutions continue to use this architecture. Its share will remain at 12.5% in second-quarter 2016.

Except for MT6737, all MediaTek products support Cat.6 in first-half 2016.

The X20 and X25 are basically the same type of chip with different physicality and clock rate. The highest clock rate for X25 is 2.5GHz and for X20 it is 2.2GHz. Both products are based on TSMC’s 20nm process and were officially launched at the end of first-quarter 2016.

T h e X 3 0 i s e x p e c t e d t o b e launched at the end of 2016 and will be the earliest product made from TSMC’s 10nm process but related end-market devices wil l not be announced until 2017.

In 2016, MediaTek focuses on X20 and X25 for high-end market segments. The two products only differ in physicality and clock rate due to difference in tolerance; other

functions are exactly the same. The X20 and X25 support the

highest 25M-pixel cameras, 2K resolution screens, and 4K video/audio codecs.

Currently, Meizu and LeTV use the two solutions and shipments of mobile devices running on them have begun. In 2016, MediaTek focuses on P10 for the mid-range market with 8-core Cortex-A53. The core is based on TSMC’s 28nm process.

P10 supports camera modules up to 16MP and communication standard up to LTE Cat.6. P10 is the mainstream and compared with X20 and X25, the product is favored by more customers.

Currently in the China market, major firms such as Lenovo, Gionee, Meizu, TCL, OPPO, and ZTE and many other second-tier firms have adopted or plan to adopt P10 for their products.

QualcommQualcomm had a comprehensive

product line in first-quarter 2016 with competitive mid-range to high-end solutions. But due to the significant shipment decrease to the entry-level segment, the firm’s overall shipments decreased 13.9% sequentially.

Qualcomm’s first-quarter 2016 shipments saw an on-year growth of 26.5% as the firm had a stronger product portfolio compared to 2015.

2Q16 forecastShipments continue to be strong

fo r Qua lcomm’s h igh-end 820 solution in second-quarter 2016, and the firm has launched mid-range 14nm product, pushing shipment growth to 12.9% in second-quarter 2016.

Qualcomm’s 2016 product line is more competitive than the one in 2015 and although the firm does not offer many solutions for the entry-level market, its overall shipments are expected to have an on-year increase of 20.7% in second-quarter 2016 due to increasing shipments of mid-range to high-end solutions.

By baseband typeShipment share of LTE products

among total Qualcomm shipments has been growing steadily. Their share of overall Qualcomm shipments reached 96% in first-quarter 2016. Other pure 3G solutions introduced by Qualcomm only accounted for 4% and the firm does not plan to introduce any more new products for the segment.

2Q16 forecastQualcomm’s second-quarter 2016

shipments are mostly LTE solutions with their share reaching 96.5%.

Even though there is still demand from the 3G market, Qualcomm plans to exit the 3G market due to concerns over prof i tabi l i ty, as the pr ice competition between MediaTek and Spreadtrum has significantly shrank the profit margin for the segment. Therefore, 3G solution shipments will only account for 3.5% of total shipments in second-quarter 2016.

Supplier analysis

Shipments by architecture

Shipment share by supplier, 1Q15-2Q16

Source: Digitimes Research, May 2016

0%

10%20%30%40%50%60%70%80%90%100%

2Q16(f)1Q16(e)4Q153Q152Q151Q15Intel 0.7%0.6%0.5%0.2%0.4%0.2%Samsung 1.7%1.5%1.2%1.4%0.4%1.0%Marvell 1.0%0.4%0.3%0.7%2.0%1.4%NVIDIA 0.0%0.0%0.0%0.0%0.4%0.5%Leadcore 0.7%1.5%3.7%3.6%5.7%5.3%Hisilicon 9.3%9.3%9.2%8.7%5.3%4.8%Spreadtrum 18.7%17.8%20.9%19.5%18.0%17.2%Qualcomm 23.3%23.0%22.2%20.2%23.7%23.4%Mediatek 44.7%46.0%41.9%45.6%44.1%46.3%

Source: Digitimes Research, May 2016

Shipment share by architecture, 1Q15-2Q16

0%10%20%30%40%50%60%70%80%90%100%

2Q16(f)1Q16(e)4Q153Q152Q151Q15x86 0.8%0.6%0.1%0.2%0.2%0.2%Cortex-A5 1.0%1.5%2.0%3.0%3.0%7.0%Cortex-A7 34.0%32.0%31.5%31.6%33.2%32.0%Cortex-A9 0.2%1.0%2.0%2.0%3.0%9.5%Scorpion 0.0%0.1%0.1%0.2%0.2%0.3%Krait 0.0%0.3%0.8%1.0%1.4%1.7%Cortex-A15/A17 0.3%1.0%2.0%5.0%7.0%11.2%Cortex-A53 57.7%59.0%57.8%54.0%48.0%36.1%Cortex-A57/A72 6.0%4.5%3.9%3.0%4.0%2.0%

MediaTek smartphone AP shipments, 1Q15-2Q16 (m units)

Source: Digitimes Research, May 2016

-30%

-20%

-10%

0%

10%

20%

30%

40%

0

1020304050607080

2Q16(f)1Q16(e)4Q153Q152Q151Q15Shipments 67.062.068.063.054.048.5Q/Q 8.1%-8.8%7.9%16.7%11.3%-24.2%Y/Y 24.1%27.8%6.3%3.3%0.0%-3.0%

MediaTek shipment share by baseband type, 1Q15-2Q16

Source: Digitimes Research, May 2016

0%10%20%30%40%50%60%70%80%90%100%

2Q16(f)1Q16(e)4Q153Q152Q151Q15LTE 82.0%77.9%69.1%60.8%50.7%41.4%CDMA 0.7%0.7%1.8%3.2%4.1%5.2%EDGE 3.1%4.3%10.0%11.8%13.1%14.4%TDSCDMA 0.2%0.9%1.6%2.6%5.0%7.0%WCDMA 14.0%16.2%17.5%21.6%27.0%32.0%

Qualcomm smartphone AP shipments, 1Q15-2Q16 (m units)

Source: Digitimes Research, May 2016

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

0

5

10

15

20

25

30

35

40

2Q16(f)1Q16(e)4Q153Q152Q151Q15Shipments 35.031.036.028.029.024.5Q/Q 12.9%-13.9%28.6%-3.4%18.4%-31.9%Y/Y 20.7%26.5%0.0%-3.4%31.8%32.4%

PRODUCT NEWS Thursday June 2, 20166

Press release

AVEXIR Technologies Corp., a global memory brand of breathing LED & plasma tube technology products, has announced new products at 2016 Computex Taipei.

AVEXIR had officially expanded its product line to SSD and launched the world first LED SSD: S100 series SSD last year. At 2016 Computex Taipei, AVEIXR introduced a new SSD, M100 series SSD. The target audience of M100 series SSD is totally different from those of S100 series SSD. It aims at business people and consumers who need portable memory disks. M100

series SSD is a dual interface SSD, with SATA III and the newest USB 3.1/ TYPE-C support. By means of USB 3.1 high-efficient transmission, external portable hard drive is no longer subject to transmission interface influence. Also, it can deliver SATA III read/write performance: the read speed up to 540MB/s, and the write speed up to 450MB/s. It will be available in 120GB /240GB/ 480GB capacities. As to the product appearance, it is only 7mm thick and with robust metal material housing. In addition, it hE.

AVEXIR also showcases its Raiden PCIe M.2 SSD ser ies . AVEXIR has been modifying, polishing and

redesigning it after its conceptual model was displayed at Computex last year. Raiden PCIe M.2 SSD supports M.2 AHCI SSD with high-speed PCI-Express interface, and shares bandwidth with PCIe Gen 3 x4, wi th t ransmiss ion speeds theoretically reaching up to 2000MB/s. Exchangeable M.2 design enables users to randomly choose the speed and capacity they want. Also, it supports 128GB-1TB M.2 SSD with AHCI interface, which allows some old motherboard chips set can have free-driver to enjoy high-speed SSD performance. Moreover, Raiden PCIe M.2 SSD is with AVEXIR’s

technology of plasma tubes. And there is the new member

of the Raiden Family: Green Tesla. AVEXIR’s Raiden series products, including Raiden series and Red Tesla, have become the most popular and best-selling of AVEXIR memory products. However, blue and red plasma tube lighting effect cannot meet everyone’s needs. Therefore, AVEXIR has privately showcased green plasma tube lighting effect in CaseMod builds around the world. AVEXIR is now openly showcasing Green Tesla at Computex 2016. Due to the trend of switching to DDR4, Green Tesla will only release the DDR4

version and start with 2666MHZ dual channel 16GB capacity.

Apart from showcasing its latest products, AVEXIR is also arranging

activities and special events this year. Also, AVEXIR has 10 CASEMODs for visitors to closely experience them. AVEXIR is at Booth No. I0818.

AVEXIR announces new product lineup

AVEXIR announces M100 series SSD, Raiden PCIe M.2 SSD and Green Tesla

Press release

To address diverse needs of outdoor life and provide leisure activity gear and equipment to bring users fresh experience and convenience, WiMe has launched in 2016 a whole new car starter, FlashJumper, a five-in-one multi-function device that is not only fun but also useful in emergencies.

FlashJumper combines a car starter, mobile power bank, LED warning tripod, ultra-high brightness flashlight and three outdoor white-light lamps. The design integrates these common outdoor tools in a 32 x 7.8 cm package for easy assembly and portability. FlashJumper’s innovative and user-friendly design meets all user needs by providing emergency assistance in the case of traffic accidents, convenient light sources during outdoor activities and safety warning when the car stops at roadside. The product is patent pending in the invention, utility and design categories in the US and China.

Unexpected circumstances may arise when traveling outdoors, such as the car battery suddenly running out.

F l a s h J u m p e r p r o v i d e s a c a p a c i t y o f 10,000 mA with a cable to bring the battery back to l ife and the trip back to fun. F u r t h e r m o r e , people nowadays u s u a l l y b r i n g e l e c t r o n i c d e v i c e s , i n c l u d i n g s m a r t p h o n e s , c a m e r a s a n d tablets, to their outdoor events. FlashJumper enables plug-and-play anywhere free from the limitation by jumper cables and electric sockets.

Combining a warning tripod with 36 high-brightness red LED, FlashJumper protects users in a vehicle stopped in the dark from accidents, ensuring traffic safety by warning other vehicles on the road and preventing collision with approaching cars.

FlashJumper’s ultra-high brightness

flashlight, equipped with a 5W LED spotlight with 350 lumens, can light up a dark campsite and can easily be seen from a distance. FlashJumper is detachable into three 2W diffuse lights to meet the use scenario for multiple light sources on a camping trip. For latest information on FlashJumper, please visit www.wime.tw. Inquiries relating to the product can be directed to sales@wimegroup.com.tw.

WiMe FlashJumper

WiMe five-in-one multi-function car starter FlashJumper

Press release

A u d i o a n d i m a g i n g s o l u t i o n provider Conexant Systems is highlighting its AudioSmart 3.0 product line during Computex. These highly-efficient, powerful silicon and software solutions redefine the audio experience for a range of consumer electronics – including tablets and PCs. Today, Conexant is showcasing the world’s first PC to receive Microsoft Skype for business certification as a group speakerphone, along with their high-performance, four-microphone far-field voice input pre-processing technology and context-aware control automation software.

Conexant has partnered with a top computer maker to create the world’s first PC certified by Microsoft as a Skype for Business Group Speakerphone. It supports and extends the Microsoft Skype for Business Group Speakerphone experience within a single, fully-integrated productivity platform. The system features both hardware and sof tware f rom Conexant ,

culminating in a portable notebook that also replaces a desk-based speakerphone by enabling loud, clear telephone calls directly from the PC itself.

T h e l e v e l o f p e r f o r m a n c e achieved by this platform addresses the fact that Skype audio problems often hinder communication and put a damper on productivity. Similar challenges arise when attempting to communicate with intelligent personal assistants. It is frustrating when Microsoft Cortana can’t understand the user or produce the results the user needs.

With Conexant AudioSmart 3.0 technology and design services, Conexan t ’s vo ice p rocess ing algorithms allow users to speak naturally and be heard – as well as better hear what others are saying. With advanced de-reverb, superior noise reduction (on both sides of the conversation), integrated smart amplifier technology, and automatic speech recogni t ion (ASR) hi t rates, AudioSmart 3.0 makes VoIP communication more natural, and hands-free control less of a burden –

even in far-field conditions.Conexant has a l so c rea ted

a s u i t e o f t e c h n o l o g i e s t h a t i n t e l l i g e n t l y s e n s e c o n t e x t , leveraging informat ion about how a device is being used to automatically optimize the end-user experience. The ability to discern what a device is being used to do under particular conditions allows Conexant technology to adapt and ensure the audio experience is right. For example, audio settings normally found buried deep in a control panel application are automatically optimized, with no user input required. Without having to know where that control panel is found – much less how to adjust all the settings found there – users of Conexant technology receive personalized audio processing. The result is louder, more intelligible playback for all use-cases, and more accurate responses from Cortana under the most challenging conditions.

During Computex, Conexant is at suite #1002-10F at the Grand Hyatt Taipei.

Conexant AudioSmart enhances natural workplace collaboration, interaction with intelligent personal assistants

Sponsored content

In a quest to differentiate their businesses, leading semiconductor compan ie s a r e focus ing on developing technologies that enable data-driven applications – such as power reductions, sensor capabilities, mobile smart device features, and Internet connectivity. This combination of technologies is used to create Internet of Things (IoT) devices – it is one of the most disruptive technology breakthroughs for the industry. In terms of scale, while mobile phones consume 1-2 billion chips every year, IoT devices are projected to consume over 100 billion chips per year. This booming sector i s fas t becoming the driver for growth in the electronics and semiconductor industries.

I o T i s e n a b l i n g a n o t h e r i n d u s t r i a l r e v o l u t i o n b y fundamental ly changing the bus iness mode l fo r va r ious industries. The model for durable goods OEMs is changing from a t r ansac t iona l mode l ( se l l and forget) to a service model (sell and continue to serve) as enabled by IoT technologies. To s tay compet i t ive in th i s changing landscape, companies are collaborating with leading solution providers in order to enable and deliver this business transformation through IoT.

To further explore industrial t ransformat ion through IoT technologies, Digitimes recently i n t e r v i e w e d H a n s R e m p e l , Exosite’s CEO and co-founder, to discuss the company’s vision, how it is helping organizations IoT-enable their business, and the

outlook for the IoT market.

Using Data Analytics, IoT Enables Enterprises to Successfully Compete

Exosite provides a reliable, s e c u r e , a n d s c a l a b l e I o T software platform that enables organizations to pursue new business opportunities through connec ted dev ices . Exos i t e c u s t o m e r s i n c l u d e l e a d i n g c o m p a n i e s i n i n d u s t r i a l a u t o m a t i o n , s m a r t h o m e automation, safety surveillance, wearable and industrial energy management sectors. Global brands use Exosite IoT solutions to strategically differentiate their products and services from their competitors.

“When Exosite was founded in 2009, ’the Internet of Things’ was not yet even a term,” Rempel said. “Although technologies have advanced, the transformative nature of IoT remains the same today and is enabling a revolution in how companies do business.”

Some key trends contributed to this IoT revolution. First, massive amounts of information have been collected due to the lower cost and availability of networking technologies, connectivity, and

sensors. This mountain of data has created a strong need to leverage the power of data analytics.

Second, Big Data analytic tools have made it possible to derive new insights from the data and to visualize customer trends. These insights are used to build innovative applications that provide real-time decision making guidance, and which leverage IoT-enabled cloud infrastructure and connected devices. Rempel said, “IoT is not only the technologies i t se l f , but the vehic le upon which business transformation is delivered.”

By adding connectivity to devices, applying data analytics, a n d e n a b l i n g n e w p r o d u c t designs, companies realize a more streamlined manufacturing process and sustainable product development cycle. In business-to-business IoT applications, the intelligent data analytics provided by Exosite’s cloud platform also helps to improve process and workflow of enterprises. And, most of all, IoT-enabled products help companies enhance their user experience , forming an expectation of reliability and visibility that creates new business value.

Rempe l po in t ed ou t t ha t traditional manufacturers are one of the best beneficiaries of IoT. A smoke detector is a great example – almost each family has this kind of sensor device installed in their house. With a traditional unconnected product, it is difficult for the smoke detector manufacturer, and also the home-owner, to understand whether the smoke detector is functioning properly. A properly functioning smoke detector fulfills the key value proposition of the device – that it alerts the occupants in the very rare occurrence there is a fire. This weak link is improved by applying IoT solutions. By l eve rag ing the Exos i t e IoT platform, it is easy to build a connected smoke detector that can communicate pro-actively if there is a problem (e.g. low battery), so that the device is ready for service when needed.

According to Rempel, IoT has redefined value propositions and created innovative new ways for companies to do business. By leveraging data analytics on their product data, manufacturers can gain insights into how the product is being used, and can turn those insights into new value-added services for the end customer. For example, a pump manufacturer can change their value proposition of selling a pump with certain specifications into selling the assurance of reliable fluid flow and pressure. The pump maker sees IoT technology as a way to help ensure the pumps are

performing at peak efficiency. Through the use of data analytics, manufacturers can provide an improved maintenance service and build a more reliable fluid supply system. By providing the pump product as a service, a one-time payment of equipment sales can be converted into monthly utility payments. This transactional sale migration to a service sale is revolutionizing the value chain of the entire business engagement process. IoT is not just a matter of connecting things – it is a matter of transforming business through the value that connectivity brings.

Exosite solutions help leading companies focus on the value their product is providing to their end customers by helping define and deploy their connected product strategies, and by supplying best-in-class IoT software to enable and sustain the deployments. By working in conjunction with OEMs and their solution partners, Exosite’s goal is to accelerate and de-risk the exciting process o f bus ines s t r ans fo rma t ion through IoT technologies. Some o f Exos i t e ’s cus tomer s a r e manufacturers who have done business for more than 100 years – they are leaders in their sectors. Exosite’s software and team are leaders in IoT technologies. By combining these two experts, manufacturers can shorten time to market, set new standards of excellence in their industries and maintain stronger relationship with customers.

R e m p e l e m p h a s i z e d , “ I f customers want their products connected to the cloud, Exosite is the one to provide the best cloud solution.”

Press release

CviLux (Opro9 brand) has taken the lead to launch Apple Homekit devices in Taiwan. The first series will be smart outlet and light bulb, and more will come in the future. CviLux has built a foundation to provide iPhone flash drive with encryption function for data protection, so we got approval from Apple to develop and produce Homekit devices based on encryption and wireless technologies. The characteristics of Apple Homekit devices are: one MFi approved app, operating through different brands of Apple Homekit devices; OTA (over the air) update on the software and long hardware life; Apple-Bonjour

standard meets zero configuration for end user’s friendly setting to Home/Room/Zone/Scenario easily; remote control by Siri voice command, both indoors and outdoors; highly encryption function to protect user privacy. And Cvilux develops its own app, software and cloud service, which creates product differentiation and competitive advantages.

Cvilux-Opro9 has launched SmartDiaper. Infants and children generally wear one diaper for a long period of t ime which can cause diaper rash and skin infections.

Severe infections can even jeopardize the lives of infants. The CviLux-Opro9 Smart Diaper sensor, manufactured using SGS

certified-safe materials, doesn’t even touch the ch i ld’s sk in directly, but only needs to be put on the outside of the diaper.

When the infant urinates, t e m p e r a t u r e a n d m o i s t u r e information will automatically be sent to the cellphones and tablets of parents, and will remind parents it is time to change the child’s diaper using sound, vibration, and graphical means.

The Opro9 SmartDiaper app, free on the App store, provides an easy-to-use, beautifully designed, interface to help new parents review and track their child’s habits. The app provides statistical information, including records of daily and weekly urination times, average number of times

urinated, urination frequency and so on, to allow parents to use the app records to make appropriate health-related decisions.

I f parents agree to a l low upload of their child’s data to Cvilux’s secure cloud, then the company’s cloud-based data analysis programs, combined with clinical research from medical professionals, can provide parents with even more accurate health care data about the child’s health.

Future development plans include working in cooperation with manufacturers of diapers and baby supplies to provide targeted in-app advertising and e-commerce options, to help parents of newborns receive timely information on relevant, high-quality baby-care products.

During computex, CviLux is at Nangang Exhibition Center (Hall-4, M0320) from May 31 to June 4, 2016.

PRODUCT NEWSThursday June 2, 2016 7

Hans Rempel, Exosite’s CEO and co-founder

Press release

Elo, a leading global supplier of commercial touchscreen solutions, has introduced large format TouchPro Pro-M projected capacitive (PCAP) touchscreens. The latest Pro-M series will catch the eyes of today’s consumers. This series includes the standard 32-inch, 42-inch, 46-inch and 55-inch touchscreens with customized larger screens, and together with Elo’s existing Pro-G series, covers multi-touch screen sizes from 7.0-inch up to 70-inch. These larger screens are designed for more flexible commercial usage and are customizable to meet the needs of almost any application or environment.

Elo’s TouchPro family of touchscreens includes the Pro-G touchscreens, which offer a highly durable glass-glass construction in sizes up to 27-inch while the Pro-M series is designed with leading edge mesh construction with sizes up to 70-inch. With the Pro-G series, touchscreens can already be tuned to provide multi-touch performance in robust, high durability applications with up to an 8mm total touch-through glass capability. The Pro-M series uses an advanced metal mesh solution which has a lighter weight construction to balance the larger sizes and uses leading low resistance technology. This construction allows highly flexible screen designs that will meet most application requirements and boasts industry leading optical performance. The Pro-M touchscreens can also be customized to provide support for up to a 50-point, multi-touch solution. Both solutions offer excellent optics, fast touch response and high durability with industrial grade reliability.

With more than 40 years of engineering expertise, Elo provides designers various custom options to meet their specific needs with a range of cover glass choices. Glass treatments including tempered, chemically strengthened, heat strengthened, anti-glare, or thicker cover glass for vandal-proof applications are all available for customization. In addition, Elo drivers offer enhanced capabilities including touch on release, touch exclusion zones, touch count restrictions, edge acceleration, beep on touch and a real-time application programming interface. While already supporting multiple operating systems including Apple Mac OS, Google Android, Linux, and Microsoft Windows, Elo design engineers can also custom craft driver software to your specifications.

“The large format PCAP screens offer our clients so much more flexibility,” said Niklas Fallgren, Elo’s vice president of the OEM Business Unit. “The size and customization options and construction choices of our TouchPro series means we can custom craft products that meet the unique requirements of OEM designers with the quality, technical expertise and design leadership that the industry has come to rely on from Elo.”

Elo will demonstrate the Pro-M and other Elo next generation technology products in Booth K0630 at the MRT Nangang Exhibition Center Station for Computex in Taipei on May 31-June 4, 2016.

About EloElo Touch Solutions is a global leader in fully

integrated touch solutions used by embedded technology designers across multiple touch markets. Elo has crafted best-in-class touchscreen solutions used to realize more than 20 million inspiring products in over 80 countries. The Elo experience has consistently stood for quality, reliability and innovation for more than 40 years. Elo intellectual property is protected by global patent, trademark and design registrations. Learn more at EloTouch.com

Elo large-format 70-inch TouchPro catches your eye

Press release

GIGABYTE, a manufacturer of motherboards and graphics cards, is showcasing its emerging gaming series, XTREME GAMING, which is created for providing the gaming hardware and gears that meet the demands of gaming enthusiasts. X T R E M E G A M I N G w i l l a l s o showcase its innovation through the VR experience at this year’s gaming-centric booth highlighted by the color scheme of XTREME GAMING in black and orange.

GTX 1080 to take center stageGIGABYTE is going to showcase

the just-released GTX 1080 G1 GAMING graphics card, as well as to reveal its XTREME GAMING edition card for the first time. These flagship cards of 2016 are powered by the next-generation Pascal GPU.

The GTX 1080 G1 GAMING combines the WINDFORCE 3X cooling system for heat dissipation capacity to bring out the best of Pascal. Gamers could also fully customize the lighting with the newly RGB feature.

The XTREME GAMING edition comes with brand new GIGABYTE innovative cooling technologies incorporated in the card design. The graphics card is also engineered for virtual reality with VR-friendly features to optimize VR gaming experience.

Premium gaming gears on display

In addition to GPU solutions, GIGABYTE has also launched a wide

range of premium gaming gears in the XTREME GAMING family.

XP1200M Power Supply UnitDesigned for high-end gaming rigs

with multi-GPU configuration, the 80 PLUS Platinum certified 1200W PSU is built with premium components to deliver super high efficiency and reliable operation in virtual silence for gaming needs; the fully modular management makes installation easy and tidy!

Buil t for responsiveness and precision control, the XK700 features g a m i n g - g r a d e m e c h a n i c a l k e y switches coupled with the full N-key rollover functionality; the RGB per-key backlighting provides virtually unlimited customization.

XM300 Gaming MouseDriven by the gaming-grade

6400DPI optical sensor adjustable in 50 DPI increment, the XM300 delivers exceptional precision. The OMRON micro switches provide incredible responsiveness for over 20 million clicks. Backlighting emblem allows full customization to match gamers’ play style. The classic, streamlined design offers great ergonomics with a feel ideal for long game sessions.

XH300 Gaming HeadsetImmerse in a true-to-life gaming

environment generated by 50mm driver units with enhanced bass reproduction; the uni-directional m i c r o p h o n e d e l i v e r s c l e a r communication with teammates. The

ergonomic design coupled with RGB lighting provides maximum comfort.

XC700 and XC300 Gaming PC Cases

Built for gaming, the two new cases support multi-GPU configuration and various air/water-cooling setups for building a gaming machine with optimized thermal performance; their sleek profile with RGB backlighting, the brushed metal finish and the transparent side panel provide a simple yet exquisite look.

Taking Computex experience to the XTREME

GIGABYTE prepares a full-motion racing simulator with VR integration on s i te , replacing convent ional 2D demonstration on flat screens. Everyone who is interested in taking a few laps on the virtual race could drop by GIGABYTE booth, put on a VR headset, and feel the thrill of a fully immersive VR gaming experience in person.

Visit GIGABYTE at TWTC Hall 1, Booth D0002

Come join GIGABYTE on the quest for XTREME GAMING at TWTC Hall 1, Booth D0002 during the 5-day event beginning May 31 through June 4.

About GIGABYTEGIGABYTE, headquartered in

Taipei, Taiwan, is known as a global leading brand in the IT industry, with employees and business channels in almost every country. Founded in 1986, GIGABYTE star ted as a research and development team and has since taken the lead in the world's motherboard and graphics card markets. On top of Motherboards and Graphics cards, GIGABYTE further expanded its product portfolio to include PC Components , PC Peripherals, Laptops, Desktop PCs, Network Communications, Servers and Mobile Phones to serve each facet of the digital life in the home and office. Everyday GIGABYTE aims to “Upgrade Your Life” with innovative technology, exceptional quality, and unmatched customer service. Visit www.gigabyte.com for more information.

GIGABYTE unveils XTREME GAMING at Computex 2016

Gigabyte Xtreme Gaming series products

CviLux launches new generation of Apple Homekit devices and Opro9 SmartDiaper

Exosite accelerates innovation and business transformation through IoT solutions

Apple Homekit devices and Opro9 SmartDiaper

Legacy Business, New Value Proposition: How IoT Transforms Business

XK700 Gaming Keyboard

AIC showcases server and storage solutions, unveils global strategies for data center and cloud computing marketPress release

AIC Inc., a leading player in server and storage solutions industry worldwide, will showcase the whole series of products including server boards, chassis, JBOD, all-flash-array NVMe and high-density storage server at 2016 Computex Taipei (05/31~06/04/2016), on the 4th floor of Nangang Exhibition Hall. Meanwhile, to demonstrate AIC’s sturdy strength and developing strategies to the global data center and cloud computing demanding, AIC specially design an area of “Smart Rack Series,” to display 48U, 19U, and 15U racks.

To echo the theme of AIC’s 2016 global exhibition – “The Innovator in

Cloud Computing and Data Centers," AIC will feature a series of smart racks, which includes 48U21-inch, 25U21-inch, and 15U19-inch. AIC will live demo one rack to present the Big Data running with Hadoop based on OpenStack platform, and the application of VSaaS (video survei l lance as a service) . AIC provides a complete platform for cloud computing and data processes in the data center.

In addition, AIC unveils a new series of all-flash-array NVMe server systems, support most NVMe drive vendors in the market and upgrade to Intel Xeon Processors E5-2600 v.4 Product Family, to provide a “highly dense & hybrid” storage

solution. In 1U and 2U form factor, but provide functions of high-speed, high-bandwidth, high-density and low latency. Support 2.5" NVMe PCIe SSD, AIC’s all-flash-array NVMe series server systems, providing the perfect server environment for running applications that requires fast data delivery, such as video-on-demand broadcasting, hyper-scale computing, Big Data analytics, Hadoop, and Very Large Database (VLDB).

Another important section of AIC’s booth is new series of AIC’s high-density and high-availability storage servers, including 1U12Bay, 4U24&60Bay, and etc. All products support up to Intel Xeon Processors E5-2600 v.4 Product Family. Compact

mechanica l des igning tool - less chassis will able to save maintenance staffs’ loading. All products with hot-swappable HDDs and fans, including smart fans management and low-power consumption system, will able to maintain machine at optimum status. High-Availability Server Storages include 2U24Bay and 4U24Bay, are the best solution for enterprise demanding to multi-task processing and storage. All support up to Intel Xeon Processors E5-2600 v4 product family, dual nodes would provide working configuration as "active / active", and internodes communicate with 10G Ethernet via Backplane, PCIe NTB or SAS. Most of the components on AIC’s high-availability

servers are totally redundant and hot-swappable, which decreases or nearly eliminates downtime if a node needs to be serviced because of a failure or a scheduled maintenance time.

AIC also features series of server boards, chassis and storage JBOD product lines at the booth. Global visitors & partners can find out more innovative products and furthermore, to find out AIC’s solid technical strength and the future development and marketing strategy. For more product information and possible partnership, please visit AIC’s booth in 2016 Computex Taipei.

Date: May 31-June 4, 2016

Booth Number: L0818, 4th Floor of Nangang Exhibition Hall1

For more information, please visit: www.aicipc.com

Media contact:Jean Ko+886 3 433 9188 ext. 8300jean.ko@aicipc.com.twAbout AIC:AIC is a leading provider of

both standard OTS (off-the-shelf) and OEM/ODM server and storage solut ions. With expert in-house design, manufacturing and validation capabilities, AIC’s products are highly flexible and configurable to any form factor, standard or custom.

Sponsored content

With over 20 years of development in digital cinema and home theater sound technologies, DTS has been dedicated to bringing consumers premium audio experiences whether at home, in the car, on the move or in the theater. DTS technologies enable smooth and seamless enjoyment during the transition between different use scenarios.

DTS has introduced stunning next generation audio solutions including Headphone:X, Play-Fi and DTS:X in the last two years. The acquisition of iBiquity Digital at the end of 2015 has helped DTS secure the HD radio technology that holds a large share of the in-vehicle infotainment system market in North America. DTS is now pillared on a foundation built up of four leading technologies enabling applications of DTS technologies ranging from TV, home theaters, mobile devices, streaming services to in-vehicle systems, delivering high-quality immersive audio experiences

to consumers.Aaron Chen, general manager of

sales at DTS Taiwan Branch Office, indicates DTS will showcase its latest achievements in its four major technologies at Computex 2016 and present to visitors how these audio solutions can enhance their audio entertainment anywhere.

AVR brands supporting DTS:X together hold more than 90% of the AVR market

DTS:X breaks through the barrier o f t r ad i t i ona l U l t r a HD(UHD) surround sound processing technology and transitions from having 5.1 and 7.1 sound channels set on one platform to adding a height channel to enable a whole new 11.1 or 11.2.1 sound channel experience. Several Denon, Onkyo and Yamaha AVRs currently support DTS:X via firmware updates, and several more brands including Acurus, Pioneer, ARCAM, ELITE, Marantz and Pioneer will be releasing updates over the next several months.

More than a dozen Blu-ray Discs with DTS:X audio have been released, with several more to be announced this year. Titles released thus far include The Big Short, Ex Machina and The Last Witch Hunter.

In terms of theatrical content, there have more than 20 Hollywood and Chinese films exhibited in DTS:X audio so far, such as blockbusters M i n i o n s , T h e H u n g e r G a m e s Mockingjay Part 2, Everest, The Martian, The Mermaid and The Monkey King 2. Several more films are expected to be released in DTS:X sound in the second half of the year. In addition, DTS is working with leading global digital cinema solution provider GDC and has installed more than 100 DTS:X theaters in the US and China. The number is expected to increase to more than 200 by the end of the year.

DTS has also made significant achievements with Headphone:X since 2015. High-end mobile devices from known brands including ASUS, Acer, HTC and Huawei are adding support for Headphone:X technology with

the goal to bring the premium home theater audio experiences to mobile devices. For example, more than 10 models of ASUS tablets have enabled support for Headphone:X technology. In terms of headphones, the Logitech G933 and G633 gaming models embed a built-in Headphone:X chip, as do gaming headsets from Turtle Beach, Steel Series and Triton Katana.

A popular music streaming platform is to announce its support for Headphone:X

Chen reveals tha t a f te r DTS and QQ music formed a licensing partnership in 2015, another online music streaming platform popular in Taiwan, Japan and Southeast Asia has also decided to join forces with DTS, with an announcement scheduled for June. Then, consumers will only need to use a Headphone:X-enabled mobile device and select preferred audio settings on a Headphone:X app and they will be able to enjoy top-quality streaming music from the service

platform with in-ear, circumaural or supra-aural headphones.

W h e n t h e c o n s u m e r r e t u r n s home, he or she can use existing Wi-Fi connection at home and get streaming music from online music streaming service providers including Spotify, Pandora, Rhapsody and Tidal through a mobile device or PC. Then, with DTS Play-Fi, the user can wirelessly stream the music to

every speaker in the home and enjoy lossless playback quality, which is far superior to Bluetooth streaming. Play-Fi speakers partners include widely known brands such as Paradigm, Polk, MartinLogan, Definitive Technology and McIntosh. The Play-Fi technology enables seamless streaming across several speaker brands. Furthermore, consumers with ASUS or Acer mobile devices including built-in Play-Fi drivers can remotely control speakers to play back music.

HD Radio, a recent addition to the DTS technology portfolio, comes with FM Plus, which is similar to an application program that can be installed on a mobile device to allow users to listen to flowing digital radio broadcast without consuming too much bandwidth. However, this technology is more suitable for places such as India or Mexico where wireless connection speed tends to be low. Mobile devices in Taiwan can be pre-loaded with FM Plus to enhance product appeal and boost sales in emerging countries.

PRODUCT NEWS Thursday June 2, 20168

DTS shapes immersive premium audio experiences with four leading technologies

Aaron Chen, general manager of sales at DTS Taiwan Branch Office

AIC HA202-PH