The explosive growth in AI adoption has created opportunities beyond traditional computing sectors, with networking suppliers emerging as major beneficiaries. While Broadcom, a leader in wireless networking chips and prominent ASIC provider, gains attention for its AI ASIC growth, Taiwan-based networking switch makers like Accton and Senao Networks are discovering new growth avenues through AI servers.
The US House of Representatives is preparing to vote on the fiscal year 2025 national defense budget, which includes a US$3 billion provision aimed at helping US telecoms completely remove Chinese-supplied equipment. The measure specifically targets Huawei and SMIC equipment to prevent potential network communication attacks from Chinese hackers.
It is highly likely that the iPhone SE 4, set to be launched in early 2025, will come with Apple's in-house developed 5G modem. Still, sources from the upstream supply chain believe it will take some time before the chip's performance can catch up with the competition of leading suppliers.
The rapid growth of generative AI (GenAI) and its proliferating applications is driving the need for telecom operators to optimize and expand their 5G systems. According to Ericsson's 2024 Global Consumer 5G Report, released on December 5 in Taiwan, this trend presents significant opportunities for telecom operators and equipment vendors as 5G users increasingly demand differentiated network connectivity services.
Driven by robust data center demand from major US tech companies, Taiwan's optical communication solutions provider Ezconn expects to achieve record-high revenue in 2024. The company projects double-digit revenue growth in 2025, supported by the AI data center boom, specification upgrades, and increased adoption of high-fiber-count products. The company is also developing new growth drivers in active components and RF connectors.
Tsinghua Unigroup's chip subsidiary Unisoc announced plans to secure an additional CNY2 billion (US$448 million) in equity financing, following its earlier CNY4 billion (US$896 million) round. The company's total funding now stands at NT$26.8 billion.
The satellite imaging industry is undergoing a fundamental shift from traditional observation to real-time planetary monitoring, driven by advances in edge computing and AI, according to Planet Labs Co-Founder and Chief Strategy Officer Dr. Robbie Schingler.
China's satellite navigation ambitions are accelerating, with plans for a next-generation BeiDou system taking shape amid growing commercial adoption of the technology. The expansion comes as Chinese tech giants leverage satellite capabilities in their latest devices, exemplified by Huawei's satellite-enabled Mate 60 smartphone and its new Mate X6 foldable flagship, which features innovative three-network satellite connectivity.
Recently, Huawei's executive director and chairman of the board of directors of the consumer business group (BG), Richard Yu, announced that the new foldable flagship smartphone, Mate X6, will feature a triple-network satellite version. In addition to supporting two-way satellite messaging and two-way calling, the device will now also incorporate low Earth orbit (LEO) satellite internet.
A recent Ericsson Mobility Report published on November 26 indicates that 5G subscriptions in India, Bhutan, and Nepal will surpass 270 million by the end of 2024, accounting for 23 percent of all mobile subscriptions within the region.
Wi-Fi 7 shipments have accelerated significantly in the second half of 2024, and industry experts expect Wi-Fi 7 penetration rates to grow in 2025, with upgrades to consumer devices, routers, and even basic infrastructure picking up pace even amid sluggishness in the general economy.
Japanese space communications pioneers are charting an alternative path in the global satellite internet race, pushing beyond traditional satellite networks with a comprehensive strategy that spans from ocean to space. The initiative aims to address the growing demands of Beyond 5G/6G communications while facilitating the transition to a decentralized society.
At its 2024 Investor Day, Qualcomm unveiled its latest five-year outlook, highlighting growth expectations for automotive and PC sectors as part of its non-mobile market expansion strategy.
Worldwide spending on telecommunications and pay TV services will reach US$1,544 billion in 2024, representing an increase of 2.4% year-on-year, according to the Worldwide Semiannual Telecom Services Tracker published by IDC. The latest prediction is 1pp higher than the version published in the May edition of IDC's Tracker. If that forecast becomes reality, the above-mentioned annual growth rate would be the highest recorded in the last 12 years.
Trump's "America First" agenda will remain central in his imminent second term, with reindustrialization, trade protectionism, corporate tax cuts, and stricter immigration policies at the core. However, Trump 2.0 is expected to take a more radical approach than his first term.
With Donald Trump's victory in the 2024 US presidential election and the Republican Party securing a majority in both the Senate and House of Representatives, global technology supply chains must prepare for the upcoming "red" wave. Senao Networks Inc. (SNI) chairman Tommy Tsai has announced that the company will actively evaluate manufacturing in the US, anticipating stricter tariff barriers under Trump's renewed presidency.
According to sources from the network communication sector, inventory adjustments will soon conclude, with December identified as a turning point. The network device industry in Taiwan is anticipated to continue to thrive as geopolitics continue to escalate. Additionally, the introduction of new technologies, such as Wi-Fi 7, will boost replacement demand.
Weltrend Semiconductor, a specialist in USB power delivery (PD) controller chips, anticipates strong AI server demand to drive its shipment performance in the fourth quarter of 2024.
Accton Technology, Taiwan's leading provider of data center switches and networking solutions, is significantly increasing its investments in optical communication technology to support the growing demand for artificial intelligence (AI) applications requiring faster data transfer speeds.
Taiwan-based Arcadyan Technology acknowledged significant challenges in the overall environment for 2025 but remains optimistic due to promising new technologies like Wi-Fi 7 and broadband infrastructure initiatives. The company also noted healthy customer inventory levels, boosting confidence in its operational performance for the year ahead.
Boosted by the recovering Chinese market, Qualcomm recorded better-than-expected sales and issued an optimistic sales forecast for the current period, highlighting promising trends in the mobile device industry.
As ultra-wideband (UWB) technology matures and market demand increases, UWB is gradually entering the automotive and consumer electronics sectors. Its remarkable performance in digital key and safety functions for automobiles has garnered attention, despite facing challenges from Bluetooth technology and ecosystems like the Huawei-led SparkLink Alliance.
Datang has initiated legal proceedings against Unisoc, seeking damages of CNY680.5 million (approx. US$95.8 million) over the latter's alleged failure to honor a payment agreement for a joint technology development project.
RichWave Technology reported a decline in revenue and gross margin. While Wi-Fi 7 is growing, the rapid decline of Wi-Fi 5 and price competition in the Chinese market are concerns. The company expects growth in mobile phone and networking equipment sectors, with Wi-Fi 7 playing a key role in future revenue and margin improvement.
