HTC's launch of its new smartphone models shot up both its own shipments and the overall shipments from Taiwan's handset sector in the second quarter. Although own-brand shipments were strong, ODM shipments were sluggish.

Taiwan makers saw a rare rise in their DSC shipments in the second quarter of 2014, thanks to strong orders from clients who were launching new models for the spring season. While their shipments stand little chance of returning to levels seen in the pre-smartphone era, drastic drops are neither likely, with small fluctuations expected to be the norm for the DSC sector.

Taiwan's notebook makers saw an unexpected sequential rise in shipments in the second quarter after the end of Microsoft's support for Windows XP generated a wave of replacement demand. Compared to the same period of last year, their shipments still dropped. But in general, the notebook market is improving amid signs that the tablet buzz is subsiding.

Facing a funding shortage for local IC manufacturers, the China State Council in June 2014 published guidelines to strengthen government support for China's semiconductor industry, while stating the short-, mid-, and long-term goals for the related industry supply chains through 2030. This Digitimes Special Report examines how the revised Central Government guidelines and various local government policy implementations will affect China's the semiconductor manufacturing, IC design, packaging & testing and materials industry.

Ultra HD TV vendors are facing challenges due to an overall slowdown in the TV industry and are concerned whether relative supply chains can provide compatible Ultra HD content and services. However, trends show that content makers as well as panel and chip makers are all ramping up development of Ultra HD related products and services amid expected growth. This Digitimes Research report looks at the development of these trends and provides statistics and analysis for determining market prospects for the Ultra HD TV industry going into 2015.

This report is divided into two sections; the first covers the China smartphone market, including shipments from international players and China-based players. The second section covers the China smartphone industry and covers shipments from local makers in the domestic market and export shipments.

In the first quarter of 2014, shipments by global smartphone application processor (AP) vendors to China experienced only 10.8% annual growth, with a quarter-to-quarter decline of 4.2%.

Shipment trends clearly show that the DSC market has been severely undermined by smartphones with improving camera functions. Taiwan's DSC shipments may grow sequentially in the second quarter 2014, but compared to the same period of 2013, they will register yet another decline of over 50%.

HTC lost its title as the biggest handset maker in Taiwan to Chi Mei Communication Systems in the first quarter 2014, as the former saw a sharp drop in shipments. But overall shipments from Taiwan's handset sector declined only slightly during the quarter.

Seasonality and high inventories at clients undermined Taiwan notebook makers' first-quarter 2014 shipments, which dropped following three consecutive quarters of sequential growths. Their shipments will decline further in the second quarter, as demand remains weak.

Global smartphone AP suppliers will see their shipments to China grow only 13.5% on year and drop 3.1% on quarter in the first quarter of 2014. The largest supplier MediaTek is seeing its shipments weakening and its LTE products so far still have not yet been able to help cover its existing product lines.

China first-tier smartphone players - Lenovo, Huawei, CoolPad and ZTE - started releasing new smartphones in the fourth quarter of 2013 because their entry-level model inventories, accumulated over the first three quarters of 2013, were mostly digested by October 2013. The new models' larger screen sizes and better application processors also increased China consumers' demand.