Demand from datacenters will remain strong in 2022, and server makers expect orders to be particularly strong in the first quarter of next year. In Southeast Asia, unicorn companies are emerging rapidly, partly thanks to its large population and fast growing economy.
Taiwan's leading passive components maker Yageo continues to enjoy strong demand for automotive and industrial applications, but its capacity utilization rate for commodity offerings is slipping to 70% in the fourth quarter from 80-85% in the third due to a slowdown in demand for handsets and other consumer electronics devices.
In the 19th century, energy brought about the transportation revolution. Coal and steam brought us power allowing trains to connect the transportation between urban and rural areas. One hundred years ago, the arrival of cars resulted in horse carriages disappearing on the streets of New York in just a few years. Ford's invention of assembly lines, coupled with the growing spread of telecommunication systems, have facilitated communication among people, thus changing life style and production structure of mankind. The tide of urbanization was overwhelming. Efficient management and capital financing were becoming important. In the first half of the 20th century, we were gradually progressing out of the agricultural society. After World War II, US president Eisenhower built a highway running through the American continent. The oil economy started to drive a drastic change in the industrial development.
The well-established automotive industry is evolving very fast to electrify vehicles for the goal of net-zero carbon emissions. The electric revolution also redefines the concept of car manufacturing and the related technologies and services in the ecosystems. Ron Di Carlantonio, founder & CEO of Inago, the creator of an in-car AI assistant, said, automobiles generally only get major updates every three to five years. But now Tesla can update the car overnight, which forces the traditional OEMs to embrace digitalization and more new inventions.
Despite a slowdown in demand for cnsumer electronics applications, other IC segments still see strong momentum, giving room for foundries to further raise their service quotes next year, according to PSMC chairman Frank Huang. MediaTek expects its fourth-quarter sales to drop, but sales for all of 2021 will surge 52%. Electrum Charging Solution is a Canadian startup that provides end-to-end electrical infrastructure solutions to corporations, governments, utilities, developers, and OEM manufacturers first as an infrastructure installer and now by being a system integrator. It is participating in the 2035 E-Mobility Taiwan exhibition in Taipei. The company's CEO Broderick (Brodie) Gunning talked to DIGITIMES about the company's vision as a total solution provider to the EV ecosystem in North America and Asia.
Although there have not been clear signs that Foxconn has decided to build EVs in Indonesia, the determination of the country to build a sound ecosystem for e-mobility is fully demonstrated by a recent visit by a high-level official to Taipei seeking a partnership with Foxconn.
While EV is emerging as a new market arena for global automakers and tech players, Taiwan can take advantage of its strong prowess in software and semiconductor sectors to build a solid presence in the new tech domain, according to Foxconn Technology (Hong Hai) chairman Young-way Liu.
The annual output value of Taiwan's automotive electronics exceeded NT$250 billion (US$8.99 billion) in the past year, and there is an opportunity to double growth in the coming four to five years, reaching more than NT$600 billion, according to presidential senior advisor Lin Hsin-i.
Telsa has announced that it will switch to lithium iron phosphate (LFP) batteries for its standard range Model S, 3, X and Y EVs, but will continue to use nickel cobalt manganese (NCM) batteries in its long range EV models.
Xiaomi, which declared its ambition in building cars earlier this year, has been aggressively investing in the automotive industry chain. The company recently invested in AisinoChip Electronics Technology, further expanding its ecosystem for vehicle-use microcontroller units (MCU) and information safety.
Chang Wah Technology (CWTC) expects the overall leadframe demand for IC packaging to continue outpacing supply thanks to robust growth momentum for automotive ICs, networking chips and power management ICs, and is upbeat about its business prospects for the rest of this year and into 2022.
Infineon Technologies has disclosed it has signed a memorandum of understanding with Hyundai Motor Group where Infineon will support startups with product level technical expertise to enhance their success-rate and offer them the opportunity for closer collaboration within Infineon's Co-Innovation Space in Singapore. The focus is mainly on innovations that are addressing future mobility, smart cities and smart factory applications.
Electrum Charging Solution is a Canadian startup that provides end-to-end electrical infrastructure solutions to corporations, governments, utilities, developers, and OEM manufacturers first as an infrastructure installer and now by being a system integrator. It is participating in the 2035 E-Mobility Taiwan exhibition in Taipei. The company's CEO Broderick (Brodie) Gunning talked to DIGITIMES about the company's vision as a total solution provider to the EV ecosystem in North America and Asia.
Foxconn's MIH will break free from the long-lasting oligarchy built by traditional OEMs in the automotive industry, said CK Tseng, president of Arm Taiwan, at the 2035 E-Mobility Taiwan. That will allow multiple suppliers to join the manufacturing process from different sectors, from motor, battery, vehicle body design, censors, software applications to cloud computing.
LG Electronics has announced that its advanced driving assistance system (ADAS) front camera module will be made available in the new Mercedes-Benz C-Class. The camera module, which was jointly developed with Germany-based manufacturer Daimler AG, collects various driving information to improve the safety of drivers and passengers.
Countries around the world continue to respond to zero-carbon emissions policies. The EU proposed its Fit for 55 package, which aims to reduce greenhouse gas emissions by 55%. In the US, the Biden administration has budgeted US$550 billion to an infrastructure plan that includes electrical grids, electric vehicles (EV) and energy storage.
Electric vehicles have strong potential in the Indian market. But not everyone in the South Asian country is convinced that a market where about 22 out of 1,000 people own a vehicle is ready for the EV revolution yet, according to DIGITIMES' correspondent in India. In India's mobile telecom market, intense price competition has drastically changed its landscape, with the top-3 carriers dominating over 90% of the market. In the semiconductor sector, AMD is expected to be the first adopt TSMC's SoIC technology fot its HPC chips.
The Indian government expects massive adoption of electric vehicles in the country over the next decade. According to NITI Aayog, the country's top think tank, EV sales penetration could reach 70% for commercial cars, 30% for private cars, 40% for buses, and 80% for two- and three-wheelers by 2030.
Lithium price has been on the rise since 2020, bringing production costs of EV batteries higher. Theoretically, prices of battery cells and battery packs will rise by at least 30%, according to GGII. Battery-grade lithium carbonate price has risen 440% since 2020 to CNY175,000-205,000 (US$27,300-32,000) per tonne as of October 13, 2021. Many material suppliers have seen orders extend to 2022.
China's Geely Automobile Holdings is reportedly mulling in-house development and production of chipsets for its own vehicles as it has newly expanded its registered businesses to include IC chips manufacturing as well EV battery and electrical motor production, according to industry sources.
The largest China-based lithium battery maker Contemporary Amperex Technology (CATL) has reportedly planned to set up a battery factory in the US, but the company will face challenges, according to industry sources.