Looking at the world's fabless IC design sector, there have been various acquisition and business consolidation cases this year. The world's semiconductor industry is undergoing structural change due to the rises of South Korea and Taiwan, and China has also invested a great deal in this field already. Aiming for the global development of Japan's system LSI industry, with support by Development Bank of Japan, Socionext has merged with Fujitsu Semiconductor and Panasonic System LSI business and operates independently. For developing diverse system-on-chip (SoC) solutions, Socionext also appointed Mr. Yasuo Nishiguchi, the former CEO of Kyocera Corporation, to take the leadership. In a recent interview, he explained the company's vision and overall outlook for the SoC market in addition to the development of digital TV applications.
Despite its just started operation in March this year, Socionext is a brand new Fabless IC design company with development focus on SoC solutions. Mr. Nishiguchi leads a group of executives and senior managers participating in COMPUTEX 2015. Besides the fabulous designed exhibition booth demonstrating Socionext up-to-date products, Mr. Nishiguchi also visited various customers, suppliers and news media to understand more business potential of Taiwan and explore the future cooperation with Taiwan OEM/ODM customers.
In COMPUTEX, due to growing demands for 4K Ultra High Definition TV segment, Socionext has established its focus on applications such as image processing, sound effect, Google TV integration and WiGig wireless data communication solutions with the lowest power consumption on the market. The company's products highlight the All-in-one SoC solutions based on its high performance image processing engines, and are taking a leading step in producing solutions for UHD solutions, HDMI interface and versatile image conversion and transformation technologies as digital TV opportunities from Japan in particular unfold. Mr. Nishiguchi expresses the determination to improve the performance and functionality of digital TV products and services in order to provide new value to people beyond the mainly narrow thinking of cost and size of display panel only. In addition, advances in resolution are progressing from the conventional full HD to 4K and then to 8K in the area of TV broadcasting and web contents. Even audio is no exception, with 22.2 multichannel surround audio scheduled to be adopted in the next generation of broadcasting system.
In light of this company's developments in All-in-one SoC series product lines, there is an outstanding conceptual demonstration station taking place in the middle of Socionext's booth for showing the newer generation of image processing engine called "PRO 5" chip. It shows thirty-six 4K quality video streams simultaneously in one 60-inch screen with a powerful interactive user interface control for aiming high end digital signage applications. This is a very impressive live demonstration about the future image processing capability from Socionext R&D works. Meanwhile, there are different innovative product ideas to be presented together with many partners to provide optimum solutions and services to end customers.
Mr. Nishiguchi has been working in semiconductor industry for most of his career. Since 1975 he started with Kyocera and now taking the responsibility of Socionext set out for a new startup. His non-stop efforts to pursuit the technology excellence achieves the strengthening of corporate core competence successfully. These strategies also leverage the synergy to maximize customers' value and win the market. Socionext will utilize the same strategy to offer customizable solutions leveraging its engineering expertise in imaging and networking technologies. He also depicted, Taiwan electronics manufacturing service vendors own the superior manufacturing capability with a bunch of hard working engineers and ready react instantly toward the rapidly changing market. Therefore, Mr. Nishiguchi strong presented, to cooperate with Taiwanese companies, will come together to form a competitive edge and have chance to win the market.
From the market study and survey, Mr. Nishiguchi discovered more than 60% of TV in Taiwan manufactured by OEM/ODM vendors. About the 4K TV sector, however, how to integrate the smarter ideas and new innovative solutions into digital TV applications will be the next key driving force of market development. This is why Socionext increases the visit to Taiwan and continuous brings the new idea to discuss with Taiwan vendors. With latest technology and rich design resources accumulated over many years, Socionext is able to provide OEM/ODM customers sophisticated solutions to enhance the value of their products.
Mr. Nishiguchi ever taught in Doshisha University as a MBA professor. He studied Taiwan ODM/OEM supplier chain and market, he figured the global brands only place orders to Taiwan but never graft their technology or ideas at the same time. But this time, Socionext is willing to transplant the whole ideas including technology and applications to Taiwan including placing manufacturing orders. That means Taiwan will be Socionext's real partner not just a factory. Socionext will head for a bright future with Taiwan. Mr. Nishiguchi emphasized and delivered a strong message to Taiwan: Socionext is not only selling chips to Taiwan but also trying to co-develop products with OEM/ODM vendors through the advanced technology and creative product ideas. Socionext is willing to invest its own company engineering resources and fully support the co-developed projects from quality and cost prospective to meet the market requirements.
Mr. Yasuo Nishiguchi, Socionext CEO
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