W35August2014

BUSINESS & TECHNOLOGY INNOVATION REPORT

Week 35

2014

Prepared by

Ferhat Ünlükal

8/31/2014

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BUSINESS & TECHNOLOGY INNOVATION REPORT Week 35

Headlines

Consumer Electronics (CE)

• The Global 4K TV market will grow at a CAGR of 106.84 percent over the period 2013-2018.

ICT

• Apple Inc.'s suppliers are preparing to manufacture the company's largest-ever iPad.

• Samsung and Nokia have signed an agreement to bring Nokia's HERE mapping service.

• Samsung announced that it has started mass producing the industry’s first 64 gigabyte (GB), double data rate-4 (DDR4).

• Foxconn Electronics has adopted a cloud computing-based security monitoring system.

• The number of active wireless connected devices will exceed 40.9 billion by 2020.

• The growth of the Americas smart homes market in the coming years is expected to be remarkable, with the revenue growth estimated to reach $22.4 billion by 2020.

• The global market for smart cities was valued at USD 506.78 billion in 2012.

Flat Panel Industry

• On-cell touch panel shipments from makers in Greater China are expected to grow 91.4%.

• The global shipments of large-size panels dropped five per cent on month to 68.21 million in July.

• The market for plastic and flexible AMOLED displays will rise to $16bn by 2020.

Semiconductor Industry

• Chipmaker Intel Corporation (INTC) should consider acquiring Taiwanese wireless chipmaker MediaTek.

• Broadcom introduced a new development kit into its Wireless Internet Connectivity for Embedded Devices (WICED™) family.

• Cryptography Research announced that MStar has licensed the Cryptography Research CryptoFirewall™ security core for integration into its connected TV solution chips.

• CSR has turned down a takeover bid from U.S. semiconductor outfit Microchip Technology.

Software Industry

• Google is buying Zync and its popular Zync Render tool, and plans to make it part of the Google Cloud Platform lineup.

• Amazon has agreed to buy the massively popular video game streaming website in an all-cash deal totaling approximately $970 million.

• Kleiner Perkins Caufield & Byer has agreed to invest in fast-growing messaging startup Snapchat.

Healthcare Industry

• Geriatric Care Services Market is expected to grow at a CAGR of 5.9 % from 2013 to 2019, to reach an estimated value of USD 850.0 billion by 2019.


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Retail and Payment Industry

• India's Bharti Airtel has announced a partnership aimed at launching mobile money services.

• ROAM announced that it has partnered with First Data- the global leader in payment technology and services solutions, to introduce an innovative mPOS solution into the Indian market

• Worldwide, the shipment for NFC-enabled cellular handsets stood at 264.5 million units in 2013.

• The global Biometrics Technology market is anticipated to reach a value of USD 23.3 billion by 2019, at a CAGR of 20.8% from 2013 to 2019.

• The global RFID market was valued at USD 1.9 billion in 2013 and is expected to grow at a CAGR of 13.9% from 2014 to 2040, to reach an estimated value of USD 5.3 billion in 2020.

Consumer Electronics (CE)

CE Market

4K TV Market

• The Global 4K TV market will grow at a CAGR of 106.84 percent over the period 2013-2018.

• Among these four segments, only LCD TVs and OLED TVs will have the 4K feature. In the coming years, most LCD screens will be equipped with 4K technology and the remaining will have the feature to upgrade. At present, the Global Television market is dominated by the LCD TVs segment and its market share will continue to rise till the end of forecast period. CRT TVs and Plasma TVs will soon be history. The OLED TVs segment, on the other hand, will grow at a more sluggish rate mainly because of the high price of these TVs and they will remain high-end products in the coming years.


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ICT Industry

Apple

12.9’’ iPad

• Apple Inc. (AAPL)'s suppliers are preparing to manufacture the company's largest-ever iPad, with production scheduled to commence by the first quarter of next year, according to people with knowledge of the matter. Shares of display makers rose.

• The new iPad will have a screen measuring 12.9 inches diagonally, said the people, who asked not to be identified because the details aren't public. Apple currently produces iPads with 9.7-inch and 7.9-inch displays. The Cupertino, California-based company has been working with suppliers for at least a year to develop a new range of larger touch-screen devices, said the people.

Apple’s stock performance

Samsung

HERE mapping service

• Samsung and Nokia have signed an agreement to bring Nokia's HERE mapping service to just about every Samsung device imaginable. Nokia announced that HERE for Android will be exclusive to Samsung's Galaxy smartphone line, and it will also be bringing a mini version of HERE to Samsung's Tizen-based

smartwatches, including the newly-announced Samsung Gear S.

Samsung’s stock performance

3D TSV Technology

• Samsung Electronics, Ltd. announced that it has started mass producing the industry’s first 64 gigabyte (GB), double data rate-4 (DDR4), registered dual Inline memory modules (RDIMMs) that use three dimensional (3D) “through silicon via” (TSV) package technology. The new high-density, high-performance module will play a key role in supporting the continued proliferation of enterprise servers and cloud-based applications, as well as further diversification of data center solutions.

• The new RDIMMs include 36 DDR4 DRAM chips, each of which consists of four 4-gigabit (Gb) DDR4 DRAM dies. The low-power chips are manufactured using Samsung’s most advanced 20-nanometer (nm) class* process technology and 3D TSV package technology.

• “Samsung is reinforcing its competitive edge in the DRAM market with its new state-of-the-art solution using its 3D TSV technology, while driving growth in the global DRAM market,” said Jeeho Baek, vice president, memory marketing, Samsung Electronics. “By introducing highly energy-efficient DDR4 modules assembled with 3D TSV, we’re taking a big step ahead of the mainstream DDR4 market, which should dramatically expand with the expected introduction of next-


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generation CPUs in the second half of this year.”

• Samsung’s volume production of 3D TSV modules marks a new milestone in the history of memory technology, following the company’s initial production of 3D Vertical NAND (V-NAND) flash memory last year. While 3D V-NAND technology embraces high-rise vertical structures of cell arrays inside a monolithic die, 3D TSV is an innovative packaging technology that vertically interconnects stacked dies. With its introduction of the new TSV modules, Samsung has further strengthened its technological leadership in the “3D memory” era.

Foxconn

Cloud Computing Based Security Monitor

• Foxconn Electronics has adopted a cloud computing-based security monitoring system equipped with in-house-developed hardware and software at its headquarters in northern Taiwan to monitor labor safety and environmental conditions at its main factories in Taiwan and China, according to industry sources.

• The system is designed and developed by Foxconn's cloud computing product business unit with help from other business units.

• Surveillance cameras are supplied by Foxconn's subsidiary Ingrasys, which has recently started turning its business focus to providing complete solutions to clients.

Foxconn’s stock performance

ICT Market

Wireless Connected Devices and IoT

• The number of active wireless connected devices will exceed 40.9 billion by 2020 – more than double the current total, according to ABI Research. The explosion in connected devices will be driven by the internet of things (IoT).

• ABI’s estimate of 40 billion devices is significantly more than the figure suggested byGartner in 2013, when it forecast that the IoT will see 26 billion units installed by 2020.

• ABI also predicted that the installed base of active wireless connected devices will exceed 16 billion this year – 20% more than in 2013.

US Smart Home Market

• The growth of the Americas smart homes market in the coming years is expected to be remarkable, with the revenue growth estimated to reach $22.4 billion by 2020, at an estimated CAGR of 17.62% from 2013 to 2020.

Smart Cities Market

• The global market for smart cities was valued at USD 506.78 billion in 2012 and is projected to grow at a CAGR of 14.0% during the forecast period from 2013 to 2019.


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Flat Panel Industry

Flat Panel Market

On Cel Touch Panel Shipments

• On-cell touch panel shipments from makers in Greater China are expected to grow 91.4% in the second half of 2014 compared to the first half of the year as makers greatly improve production yields, leading to pricing and technological advancements. Of the percentage, about 80% will be from Taiwan makers, according to Digitimes Research.

Large Size panel shipments

• TrendForce has reported that global shipments of large-size panels dropped five per cent on month to 68.21 million in July. LCD TVpanel shipments reached 20.86 million, down 0.4 per cent on month, while monitor panel shipments reached 12.72 million, a 5.6 per cent decrease, as LCD TV panel applications strained production capacity.

• Notebook panel shipments, fell 5.8 per cent to 15.32 million due to increased demand for smartphones, while tabletpanel shipments dropped 8.4 per cent to 19.27 million as Apple adjusted reserves in anticipation of the release of a new iPad in 2H14, according to WitsView, a subsidiary of market intelligence firm TrendForce.

AMOLED Market

• OLED displays are already mass produced for mobile phones and OLED will continue gaining market share against LCD technology. The next evolution is plastic displays and flexible displays. IDTechEx expects the first flagship phone with a flexible display to ship in 2017. Based on this scenario, the market for plastic and flexible AMOLED displays will rise to $16bn by 2020.

Semiconductor Industry

Intel

Posibility of acquisition of Mediatek

• Chipmaker Intel Corporation (INTC) should consider acquiring Taiwanese wireless chipmaker MediaTek within the next three years for $27 billion, insists RBC Capital Markets analyst Doug Freedman. Per Freedman, ARM (ARMH) chipmaker MediaTek could enable Intel to ramp up its mobile chip business.

• Freedman reckons that the deal would create more shareholder value for Intel by increasing its share of the mobile system-on-a-chip (SoC) market by up to 16%. Intel currently holds a 4% market share in the mobile chips market. It will also be immediately accretive to Intel’s earnings per share and would help curtail the investment losses that the chipmaker has been incurring to grow its mobile and wireless business.

• Intel is investing more than $1 billion per quarter to grow its ambitious mobile and communications business. But it has been suffering heavy losses in the process. That’s because its chips are based on x86 architecture that is less energy efficient than ARM designs.

Intel’s stock performance


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Broadcom

IoT development Kit

• Broadcom Corporation (BRCM), a global innovation leader in semiconductor solutions for wired and wireless communications, introduced a new development kit into its Wireless Internet Connectivity for Embedded Devices (WICED™) family to enable developers to rapidly prototype ideas and concepts for IoT devices and applications. The Broadcom® WICED Sense development kit is an all-in-one IoT prototyping kit that includes Broadcom'snewest Bluetooth Smart chip, five micro electro-mechanical systems (MEMS) and has a software stack that is Bluetooth 4.1 compatible. Get WICED products here.

Broadcom’s stock performance

MStar

Cooperation with Crytography Research

• Cryptography Research, the security division of Rambus (RMBS), announced that MStar Semiconductor, Inc., a leading semiconductor company for display and digital home solutions, has licensed the Cryptography Research CryptoFirewall™ security core for integration into its connected TV solution chips. The CryptoFirewall core will provide operators and over-the-top (OTT) distributors utilizing MStar-based connected TVs with strong hardware security to protect content and services against piracy.

Mediatek’s stock performance

CSR

Takeover bid from Microchip

• CSR, the British chip design firm previously known as Cambridge Silicon Radio, has turned down a takeover bid from U.S. semiconductor outfit Microchip Technology.

• CSR was a pioneer in the Bluetooth space and a notable player in mobile connectivity, but the downward trajectories of big customers like Nokia and RIM forced it to sell off its mobile business to Samsung a couple years ago. These days it’s concentrating on Bluetooth Smart, the low-energy standard for connecting wearables, cars and other internet-of-things devices, as well as modules for location tracking, audio and image processing, and Wi-Fi.

CSR’s stock performance


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Software Industry

Google

Acquisition of Zync

• Google is buying Zync and its popular Zync Render tool, and plans to make it part of the Google Cloud Platform lineup. The news was posted on the Google Cloud Platform blog.

Google’s stock performance

Amazon

Acquisition of Twitch

• Twitch is getting bought, but it's not YouTube and Google that are doing the buying. Amazon has agreed to buy the massively popular video game streaming website in an all-cash deal totaling approximately $970 million. The announcement is surprising in light of recent reports that suggested YouTube and Twitch had already reached a $1 billion buyout agreement to bring Twitch's platform and massive community under the Google umbrella.

Amazon’s stock performance

Snapchat

Venture Capital Investment

• Venture capital firm Kleiner Perkins Caufield & Byer has agreed to invest in fast-growing messaging startup Snapchat at a valuation close to $10 billion, the Wall Street Journal reported on Tuesday, citing people with knowledge of the matter.

• The venture-capital firm had committed to invest up to $20 million in Snapchat in May, the Journal cited one of the people as saying, without elaborating.

• At least one other strategic investor has committed to joining the latest round of funding, the Journal cited two of the people as saying.

Healthcare Industry

Healthcare Market

Geriatric Care Service Market

• According to a new market report, "Geriatric Care Services Market (Home Care, Adult Day Care, and Institutional Care) - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013 - 2019," is expected to grow at a CAGR of 5.9 % from 2013 to 2019, to reach an estimated value of USD 850.0 billion by 2019.


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Retail and Payment Industry

Verifone

Mobile Money in India

• India's Bharti Airtel has announced a partnership aimed at launching mobile money services in all 17 of its African operating countries.

• The company has teamed up with VeriFone Mobile Money to introduce mobile Tap n Pay applications and services.

• The Tap N Pay suite includes NFC payment, mobile banking and billing services. They include built-in security services.

• VeriFone Mobile Money CEO Chris Jones said that while Africa has one of the most evolved mobile money systems in the world, only an estimated 22% of the continent's population have a bank account or credit facility.

Verifone’s stock performance

Ingenico

Cooperation with First Data in India

• ROAM (www.roamdata.com), part of Ingenico Mobile Solutions and the leading mobile commerce platform provider, announced that it has partnered with First Data- the global leader in payment technology and services solutions, to introduce an innovative mPOS solution into the Indian market.

Ingenico’s stock performance

Retail and Payment Market

NFC Market

• Worldwide, the shipment for NFC-enabled cellular handsets stood at 264.5 million units in 2013. The mobile phone and tablet manufacturers are increasingly including NFC features in their phones and this is expected to grow during the coming years. Further, most of the already existing point of sale (POS) and transportation systems across the globe use NFC technology, thus considerable infrastructure is already developed for the use of NFC –enabled devices. There is a lot of research being carried out in the NFC field which shows the commitment of industry players toward full scale implementation of NFC in coming future.

Biometrics Technology

• According to a new market report "Biometrics Technology (Face, Hand geometry, Voice, Signature, Iris, AFIS, Non-AFIS and Others) Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013 - 2019," the global market is anticipated to reach a value of USD 23.3 billion by 2019, at a CAGR of 20.8% from 2013 to 2019.


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RFID Market

• According to a new market report published by Transparency Market Research "Radiofrequency Identification (RFID) Market (Tags, Readers, Middleware, Printers and Cabinets) - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2014 - 2020" the global radiofrequency identification (RFID) market was valued at USD 1.9 billion in 2013 and is expected to grow at a CAGR of 13.9% from 2014 to 2040, to reach an estimated value of USD 5.3 billion in 2020.

References

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W35August2014

Technology

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