Although the global economy is full of uncertainty in 2023, the overall economic situation is uncertain, and smartphone shipments are also quite bleak, the 5G application field of non-mobile phones has quite clear growth momentum in the past few years. As the leader in the global 5G communication module market, Fibocom has already made a fairly comprehensive layout.
@Redcap Communications About to Enter Commercial Stage to Play a Crucial Part in 5G Applications
Fibocom CEOTiger Ying said that according to their observations, global FWA (Fixed Wireless Access) technology still has a fair amount of growth momentum, mainly due to telecom service providers actively transferring from 4G to 5G communications technology. A secondary reason is that the number of existing 4G network connections is quite limited. Moving to 5G is thus the inevitable for the overall telecom market's development. Therefore, Fibocom believes that the RedCap (Reduced Capability) technology, as recently provided in version 3GPP Rel.17, will bring about energetic development in existing 5G vertical applications. One example is in the field of Internet of Things (IoT). RedCap can realize 5G network service capabilities in high-speed IoT scenarios and bring lightweight 5G into a larger number of application scenarios. Even the 4G LTE technology we see in the notebook market could see the presence of RedCap.
Just days ago, Fibocom attended COMPUTEX 2023, where it released its FG132-NA series 5G RedCap communication module. Fibocom is not the only one to do so, as many suppliers have purportedly displayed this technology at MWC 2023. It is expected that RedCap will enter the commercial stage in the second half of 2024, and Fibocom will be there.
@With Actually Lower Tariffs, Excellent Information Security and Superb Power Consumption, Demand for 5G Connected Laptops Is Set to Increase
On the development of 5G-connected laptops, Ying added his personal observation that tariffs on 5G in the early stage of commercial use will be quite daunting, but with the popularization of 5G networks, tariffs will become lower, and consumer acceptance of 5G laptops will gradually increase. The reason for this is, of course, not limited to the immediate convenience of the laptop, but also information security. For example, the information security of the SIM card is higher than that on Wi-Fi, and the power consumption performance is also improving apace. In addition, when laptops can use 5G to connect to the Internet, consumers who unfortunately lose their laptops can also find them through 5G positioning technology--something that Wi-Fi technology cannot do.
Although conditions in the global notebook market for 2023 are extremely poor, Ying believes that the notebook market could gradually improve in the second half of the year. And as we enter 2024, we will see the first wave of notebook replacements since the post-epidemic era. And with needs for realtime work and entertainment, demand for 5G-connected laptops will jump even higher.
@Increased Demand for Digital Transformation Drives Vertical Application Scenarios to Upgrade to 5G Network Technology
Driven by the global demand for digital transformation, demand for 5G networks has seen an increase in many vertical application fields. According to Fibocom's latest quarterly financial report, revenue has grown by more than 50% YOY, all due to the benefits brought about by digital transformation of vertical applications. Ying was candid, saying that they did see a decline this year in the performance of some consumer applications. Still, in fields like the field of Internet of Vehicles (IoV), Fibocom is actively deploying into global automotive market, and has gradually become the world's leading supplier of automotive-grade wireless communication modules. In fact, the automotive sector was the fastest growing segment in the last quarter.
In response to an unimpressive global economy and slack in demand, many companies will be taking advantage of the situation to meet the needs of digital transformation through investment. In particular, many industrial computer companies in Taiwan are also quite active in relocation and transformation. For example, smart devices such as handheld PDAs and inspection robots required for daily operations and inspections in industrial factories and power infrastructure require integration of CPU and GPU with smart modules to instantly return high-quality images that are used to determine causes of failures and use that determination to improve productivity. In addition, the recently popular ChatGPT has caused the market to have different visions of the digital world, Ying revealed. Therefore, in the future, the demand for algorithms, information security, and computing power required for wireless communication will inevitably increase. This is the market opportunity that Fibocom sees for the future, and Fibocom is well-prepared to embrace the intelligent digitalization by offering smart module series that integrating the AI capability
Overall, with increasing demand for digital transformation, demand for 5G in many vertical applications will also increase. And with the assistance of compact and highly integrated 5G communications modules, digital transformation will accelerate. It may even be said that 5G communications modules will be a crucial cornerstone in the development of the digital economy.
Fibocom attended COMPUTEX 2023, where it released its FG132-NA series 5G RedCap communication module. Fibocom is not the only one to do so, as many suppliers have purportedly displayed this technology at MWC 2023.
